How are National Non Domestic Rates calculated?
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
Durham DH1 3UW
Tel: 03000 501501
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
The local authority works out the Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief. Except in the City or London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to the formulae set by legislation. Generally, the multipliers increase in line with inflation according to the Retail Price Index in September of the preceding year. Between revaluations, the multipliers change each year in line with inflation and to take account of the cost of small business rate relief. In the year of revaluation the multipliers are rebased to account for overall charges to total rateable value and to ensure that the revaluation does not raise extra money for the Government. Similarly, the change in the revaluation date to 2017 has no effect on the total amount of revenue raised from business rates. The current multipliers are shown on the front of your bill.
Transitional arrangements will phase in the effect of significant changes in liability which arise from the 2017 revaluation of non-domestic property. Where appropriate, these arrangements will operate over a five year period (when all non-domestic property will be revalued again). There are limits on the percentage by which bills may increase or decrease each year.
Special rules deal with changes in rateable values and the merger or splitting of existing properties.
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.