Non Domestic Rates
Non Domestic Rates or Business rates are charged on non-domestic hereditaments which attract a rateable value. The rates are pooled by Central Government and redistributed to Local Authorities as part of the annual formula grant settlement.
The money, together with Council Tax revenue, Revenues Support Grant provided by Central Government and certain other sums, is used to pay for services provided by the Local Authority.
Rateable Value
The Rateable Value of each non domestic property is set by the Valuation Officers of the Valuation Office Agency who are responsible for maintaining a full list of rateable values. These Rateable values are reviewed on a five year basis and when completed form the Rating List. The List will be effective for a period of 5 years, after which a new Rateable Value is given, this is known as Revaluation.
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For the 2005 Rating List that started on 1st April 2005, the effective date was 1st April 2003.
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For the 2010 Rating List, which starts on 1st April 2010 the effective date was 1st April 2008.
The rate payer and other interested persons can appeal against this value if they believe it to be incorrect. More details can be found from the Valuation Office Agency website.
National Non Domestic Rating Multiplier
The Local Authority calculates a Business Rates bill by multiplying the rateable value of a property by the appropriate multiplier.
There are 2 multipliers, the standard non domestic rating multiplier and the small business non domestic rating multiplier.
The Government sets the multipliers for each financial year in accordance with formulae set by Legislation, except the City of London where special arrangements are in place. The multipliers change each year in line with inflation.
The current multipliers are shown on the front of the bill.
Transitional Arrangements
Property values normally change between each revaluation, therefore Transitional arrangements help to phase in the effects of these changes by limiting increases to bills. To help pay for limits on increases, there must also be limits of decreases.
Under the scheme, limits continue to apply yearly until the full amount is due. The period of transition is set by legislation.
Any transitional adjustments are shown on the front of the bill.
