How business rates are calculated and how to appeal

Find out how business rates are worked out and how to appeal if you think your rateable value is wrong or has changed.

We work out business rates each year by taking a property’s rateable value and multiplying it by the ‘multiplier’ set by the government each year.

What rateable value means

All properties which aren’t homes have a rateable value, as a way of measuring how valuable each property is.

The rateable value is an estimate of how much yearly rent the property could have earned on a particular date. Currently this date is 1 April 2008 for the current revaluation that took place on 1 April 2010.

Rateable values are usually revised every five years. The last revaluation was in 2010 and the government has announced that the next will be in 2017, not 2015.

Rateable values aren’t set by the council but by the Valuation Office Agency, who are part of HM Revenues and Customs.

How the multiplier works

In 2016 to 2017 the multiplier is 49.7p, so if your rateable value was £100,000 we would multiply this by 49.7p and your bill for the year would be £49,700.

Each year on 1 April the multiplier is increased by the government depending on the level of inflation.

How rateable value can change

The rateable value may change if any physical changes are made to your property, for example building or demolishing an extension. Tell us about any changes as soon as possible.

Appeal about your rateable value

You have the right to appeal to the Valuation Office Agency about your rateable value if you think it’s too high, even if there haven’t been any changes to the property or your business.

If you want to appeal, contact the local Valuation Office Agency on 03000 501501 or ratingsouthwest@voa.gsi.gov.uk.

You can find out more about grounds for an appeal and how the process works on GOV.UK’s pages about business rates