Understanding Business Rates and How to Appeal Your Assessment

Business rates are a form of property tax charged on most non-domestic properties in England — shops, offices, warehouses, factories, and pubs. They are levied by local authorities and form a significant part of the overheads for many businesses. Understanding how they are calculated, what reliefs are available, and how to challenge your assessment can save your business a substantial amount.

How Business Rates Are Calculated

Your business rates bill is calculated as: Rateable Value × Multiplier = Business Rates. The Rateable Value (RV) is set by the Valuation Office Agency (VOA) and represents the estimated annual rental value of the property at a fixed valuation date. The most recent revaluation came into effect on 1 April 2023, based on rental values at 1 April 2021. The multiplier is set annually by the government: the standard multiplier for 2025/26 is 55.5p per pound of rateable value; the small business multiplier is 49.9p per pound (for properties with RV below £51,000).

Reliefs and Exemptions

Small Business Rate Relief (SBRR)

If your property's rateable value is below £15,000 and it is your sole business premises, you can claim SBRR. Properties with RV up to £12,000 pay no business rates at all. Properties with RV between £12,001 and £15,000 receive tapered relief. Contact your local authority to apply.

Retail, Hospitality and Leisure Relief

Various temporary reliefs have been applied to retail, hospitality, and leisure businesses in recent years, particularly during and following the COVID-19 pandemic. Check your local authority's current position for the 2025/26 year — reliefs have been tapered back significantly.

Empty Property Relief

Unoccupied properties are exempt from business rates for the first 3 months (6 months for industrial properties). After that, full rates apply. There are limited exceptions for listed buildings, properties with RV under £2,900, and a few other categories.

Mandatory and Discretionary Reliefs

Charities receive 80% mandatory relief and local authorities can grant up to 100%. Rural businesses in designated rural areas may qualify for rural rate relief. Local authorities have discretionary powers to grant hardship relief or other discretionary relief in exceptional circumstances.

Challenging Your Rateable Value

If you believe your rateable value is too high — for example, because comparable properties in your area have lower values, or because your property has a specific characteristic that depresses its rental value — you can challenge it through the Check, Challenge, Appeal (CCA) process. Start by checking your rateable value on the VOA website (gov.uk/guidance/how-to-challenge-your-rateable-value). If you believe it is wrong, submit a Check, and if unresolved, progress to a Challenge and then an Appeal to the Valuation Tribunal. The process requires evidence of comparable rental values — ideally supported by a surveyor experienced in rating.