Rate Calculations
The amount of rates that a business has to pay is worked out by
multiplying the rateable value
of the property by the rating
multiplier figure and applying any transitional relief or other
reductions that may apply.
These calculations will be shown on the bill. There is a brief
explanation of rateable value, rating multiplier and transitional
relief below. There are also various other ways of reducing the
bill and these are detailed on the Reductions page.
Rateable value
The Valuation Office Agency, which is part
of the Inland Revenue, sets the rateable value of a property. The
rateable value is shown on the front of the bill. The figure
broadly represents the yearly rent that a property could have been
let for in the open market on a particular date. For the
revaluation that came into effect on 1st April 2010, this date was
1st April 2008. You can find more information on how rateable
value is calculated by visiting the Valuation Office Agency website.
The valuation officer may alter the value if the circumstances
of the property have changed. If you think this applies to
you contact the Valuation Office Agency.
If you think the rateable value of your property is wrong, you
can appeal to the valuation office agency. For further information
about appeals you can visit the Valuation Office Agency website, the
Valuation Tribunal
Service website or the Appeals and
Advice page.
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Rating multiplier
The rating multiplier is a figure set by the Government each
year. This is normally changed each year in line with
inflation.
From 1 April 2010 there are two multipliers; the standard
multiplier and the small business rates multiplier. The
amount of the multipliers is shown on the front of the bill.
More information on multipliers and Small Business Rates
Relief can be found at the Businesslink
website. More information on Small Business Rates Relief can be
found on the Reductions page.
Transitional relief
The transitional relief scheme was introduced by the government
as a method of phasing in the effect of the 5 yearly revaluation of
rateable values by limiting the increases or decreases in business
rates bills. The limits apply until the full amount is due
(rateable value times the appropriate multiplier).
The scheme applies only to the bill based on a property at the
time of the revaluation. If there are any changes to the
property after revaluation, transitional arrangements will not
normally apply to the part of a bill that relates to an increase in
rateable value due to those changes.
You do not need to apply for transitional relief. If you
qualify, it will be automatically awarded, when we calculate your
bill.
You can find more information about transitional relief,
including examples of how it works, by visiting the Businesslink
website. Further information about ways to reduce your bill can be
found on the Reductions page.
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