How we work out your business rates

Business rates fact sheet

Every non-domestic property in England unless it is exempt  has a rateable value. This figure broadly represents the yearly rent a property could have been let for on the open market on a particular date. The valuation office revalues properties every five years. For the revaluation that took effect from 1 April 2005, this date was set as 1 April 2003.

Each year, the Government sets a multiplier or 'poundage'. This figure applies from the start of the rating year, and is the same for all non-domestic properties. The poundage is amended each year, but it cannot increase by more than the rate of inflation. 

We work out the yearly business rate bill by multiplying the rateable value by the poundage. 

However, this figure may be affected by transitional adjustments, which limit the amount by which a bill can be increased or reduced compared with the previous year. 

We explain transitional adjustments in more detail in another factsheet. See Transitional arrangements for more information.