How are National Non Domestic Rates calculated?
Rateable Value
Business rates are based on your property’s rateable value. The Valuation Office Agency (VOA) maintains the Non-Domestic Rating List. This includes setting the rateable values of business properties. To understand why your property has a certain rateable value, please visit GOV.UK website: 'How business rates are calculated'. You can inspect a copy at:
The Valuation Office Agency
Durham Customer Service Centre
Wycliffe House
Green Lane
Durham DH1 3UW
Tel: 03000 501501
www.voa.gov.uk
The Valuation Officer may alter the value if he believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) may also in certain circumstances propose a change in value. If in any case the ratepayer and the Valuation Officer do not agree, the matter will be referred as an appeal to the Valuation Tribunal.
Information about the circumstances in which a change in rateable value may be proposed and how such a proposal may be made is available from the Valuation Office at the address shown above.
Please note that if you have appealed against your rateable value, payment is still due as detailed on your Rates Bill and cannot be withheld pending the outcome of your appeal.
National Non-Domestic Rating Multiplier
From the 01 April 1997 to the 01 April 2026, there were two national multipliers; the first was the national non-domestic rate multiplier, which is used to calculate the rates for all businesses.
The second multiplier was for small businesses that qualify for small business rate relief or occupy a property with a rateable value below the relevant threshold for the financial year. From the 01 April 202,5 all hereditaments with a rateable value below £51,000 will have their demands calculated using the smaller multiplier, including those in receipt of charitable relief and empty properties.
From 1 April 2026 central government has introduced five multipliers which are to be used to calculate how much a business will need to pay for the financial year:-
Small business RHL multiplier for qualifying retail, hospitality and leisure businesses who occupy a property with a rateable value under £51,000.
Small business multiplier for businesses that are liable for a property with a rateable value under £51,000 and do not qualify for the RHL multiplier.
Standard RHL multiplier for qualifying retail, hospitality and leisure businesses who occupy a property with a rateable value between £51,000 and £500,000.
Standard multiplier for non-retail, hospitality and leisure businesses that are liable for a property with a rateable value between £51,000 and £500,000 and do not qualify for the RHL multiplier.
High value multiplier for all properties that have a rateable value of £500,000 or above.
The actual amount a business will pay is calculated by multiplying the rateable value of the property by the relevant multiplier.
Transitional Adjustments
Reducing the impact of a significant increase in the rateable value of your business, following a general revaluation.
The Valuation Office Agency re-values all non-domestic properties every three years. You can find more information on our business rates revaluation page.
At each revaluation the government puts in place a transitional adjustment scheme to phase in any large increases in the business rates you have to pay.
The maximum increases which are allowed under the transitional relief scheme in each financial year:
| Rateable value | 2026/27 | 2027/28 | 2028/29 |
|---|---|---|---|
| Up to £20,000 | 5% | 10% plus inflation | 25% plus inflation |
| £20,001 to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
We automatically include the transitional rate relief when we calculate your bill, so there is no need to apply for it.
You can read more information on the transitional relief page on the GOV.UK website.
Transitional Relief Supplement
A 1p supplement to the relevant tax rate (multiplier) for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.
Unoccupied Property Rating
Non-domestic properties which are unoccupied may be liable to empty property rates. Rates are charged at 100% of the full rate bill or of the transitional bill where the transitional arrangements apply. Liability begins after the property had been empty for 3 months (6 months for Qualifying Industrial Premises). Certain types of property, such as listed buildings and properties owned by Charities, are exempt from empty property rates.