Business rates are levied on most non-domestic properties, including shops, offices, warehouses, pubs, factories, guest houses, and holiday rentals. These rates are determined based on the property’s rateable value, and there are various reliefs available to potentially lessen this financial burden.

The properties undergo regular revaluations to align with current property market values. The latest revaluation took effect on 1 April 2023, reflecting the property’s rateable value as of 1 April 2021.

Key Points of the Revaluation:

  • All properties receive a new rateable value.
  • The multipliers are adjusted.

Transitional Relief: This is a mechanism to limit the extent of change to your business rates bill resulting from revaluation. It applies if your bill undergoes a substantial change, phasing in the adjustments over time.

The degree of change permitted annually due to revaluation depends on the property’s rateable value and whether the bill has increased or decreased. Below is a table illustrating the allowed increases for the fiscal years 2023/24, 2024/25, and 2025/26:

Rateable Value 2023/24 2024/25 2025/26
Up to £20,000 (£28,000 in London) 5% 10% + inflation 25% + inflation
£20,001 (£28,001 in London) to £100,000 15% 25% + inflation 40% + inflation
Over £100,000 30% 40% + inflation 55% + inflation

Action Steps:

  1. Verify Your Bill: Ensure that your business rates bill has not escalated beyond the permitted amounts due to the revaluation. A significant increase could occur, for instance, if a business loses eligibility for small business rate relief following revaluation.
  2. Contact the Valuation Office Agency (VOA): If there are discrepancies in your property details or if you believe the rateable value is excessively high, reach out to the VOA through your business rates account.
  3. Claim Your Reliefs: Ensure you are receiving all eligible reliefs, and if they are not reflected in your bill, make a claim in writing to your Local Authority.

By proactively managing and verifying your business rates, you can ensure that you are not paying more than necessary and are taking full advantage of available reliefs.

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Any questions?

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