Business rates are a tax on most non-domestic properties, paid by whoever occupies the premises — usually the tenant, not the landlord, unless your lease says otherwise. They fund local services in the same way council tax does for homes.

How business rates are calculated

Your rates bill is based on the property's "rateable value" — an estimate of its open-market annual rental value set by the Valuation Office Agency — multiplied by a government-set "multiplier" that's updated periodically.

Worth checking early: the rateable value of a specific unit, since it can vary significantly even between similar-looking premises on the same street.

Reliefs that might reduce your bill

  • Small business rate relief — available for many businesses using one property below a certain rateable value
  • Retail, hospitality and leisure relief — periodically offered to qualifying sectors
  • Rural rate relief — for certain businesses in small rural settlements
  • Empty property relief — a temporary exemption when a property is unoccupied

Before you sign a lease

  • Ask the current or previous occupier what they were paying, as a sanity check
  • Check the rateable value on the government's rating list before making an offer
  • Factor the multiplier and any relief you may or may not qualify for into your monthly cost estimate

Can I appeal my rateable value?

Yes — if you believe it's inaccurate, there's a formal process to challenge it with the Valuation Office Agency, though it can take time and doesn't guarantee a reduction.

Do rates apply if the unit is empty?

Often yes, after an initial exemption period, which is one reason landlords are motivated to keep units let rather than vacant.

This guide is for general information only and is not tax advice. Rates, multipliers and reliefs change over time — always confirm current figures for your specific premises.