Pubs and Licenced Trade

In England and Wales, the HMRC Valuation Office works out your rateable value based on the annual level of trade (excluding VAT) that a pub is expected to achieve if operated in a reasonably efficient way.

This is called ‘fair maintainable trade’ and it’s based on:

• the type of pub or licensed premises
• the area it is in
• the services it offers, for example food, gaming or televised sports screenings.

The Valuation Office also looks at rents and turnovers to work out the fair maintainable trade figure, then applies a percentage to work out the rateable value, you can read more at GOV.UK - Business rates: Pubs and licensed trade.

The percentages are agreed with the British Beer and Pub Association and they are in the Valuation Office's pub guide. Contact the Valuation Office at GOV.UK - Valuation Office: enquiries if you want to check the figures they are using or don’t agree with the figures being used.

You’ll need to provide details of turnover (excluding VAT) for all sources, such as liquor, food and gaming.