Changes to business rates from 1 April 2023
What are business rates?
Business rates is a local tax that is paid by the occupiers of all non-domestic/business property, in the same way that council tax is a tax on domestic property.
Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories. However, the property does not have to be used for a business – if it is used for purposes which are not domestic it is likely to be rateable. We will send you a business rates bill each year.
What is the rateable value?
The rateable value is assessed by the Valuation Office Agency (VOA), which is an agency of HM Revenue and Customs.
A property’s rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
- The next revaluation will come into effect on 1 April 2023. Values will be based on the valuation date of 1 April 2021.
If you think your rateable value is incorrect, you can find and view your property details on the Gov.uk website
Roles and responsibilities?
The VOA sets the rateable value of business premises by using property details such as rental information.
We use the rateable value and the business rates multiplier (set by central government) to calculate your business rates bill.
What is a revaluation?
The VOA regularly reassess and update the rateable values of all business assessments. In future a revaluation will be done every 3 years, starting from 1 April 2023.
This helps maintain fairness in the rating system by redistributing the total amount payable in business rates, reflecting changes in the property market.
How can I find out more?
For further information on the 2023 revaluation, rateable values, and business rates visit the GOV.UK website
What you need to know
- To make sure the new valuations are accurate and consistent, the VOA uses property information and rental evidence
- Your local council will use this value to calculate your business rate bill from 1 April 2023
- If your rateable value is below £15,000, you may be eligible for small business rate relief
At revaluation, the Valuation Office Agency (VOA) adjusts the rateable value of business properties to reflect changes in the property market.
What happens at revaluation
At revaluation:
- all properties are given a new rateable value
- multipliers are revised
This means that a change in your rateable value doesn’t always mean a change in your bill.
To make sure your valuations are accurate, you may need to give VOA up-to-date rental evidence for your property at revaluation. If the business rates of your property in England change by more than a certain amount, you’ll get transitional relief so that changes to your bill are phased in gradually.