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How your business rates are worked out

The amount paid for business rates is based on the rateable value of a property, which is calculated by the Valuation Office Agency. Business rates are calculated by:

  • the rateable value of your property (set by the Valuation Office Agency)
  • the rate multiplier (set by the Government)

Estimate your business rates at GOV.UK

Rural settlements

Rural rate relief is available for certain types of businesses situated within a rural settlement with a population of 3,000 or below. In order for businesses to qualify they must be:

  • the only ‘general store’ with a rateable value below £8,500.
  • the only ‘post office’ with a rateable value below £8,500.
  • any ‘food shop’ (excluding confectionary stores, takeaways and restaurants) with a rateable value below £8,500.
  • the only ‘public house’ with a rateable value below £12,500
  • the only ‘petrol filling station’ with a rateable value of less than £12,500. 

An eligible ratepayer is entitled to relief at 100% of the full charge (with effect from 1 April 2017) whilst the local authority also has discretion to give discretionary relief to those premises listed above which have a Rateable Value  less than £16500.

Business rates revaluation

The Valuation Office Agency revalues properties for business rates periodically. Revaluations have usually occurred every five years. A revaluation last took place on 1 April 2017. However, Central Government announced that the next revaluation will be 2021 and future revaluations will be more frequent, on a three yearly basis taking effect 2024.