Home Page

Business Rates calculation

The rates payable are calculated by the Council by multiplying the rateable value by the rate in the pound (also known as the rate multiplier). This is known as the notional chargeable amount.

The Local Authority then calculates whether Transitional Relief Arrangements apply and adjusts the demand level accordingly.

Further relief can also be awarded to:

  • empty properties
  • charities
  • organisations not established for profit
  • community amateur sports clubs
  • certain businesses in rural areas
  • businesses suffering hardship

Previously, all monies due in respect of Business Rates was forwarded each month to Central Government to be redistributed to each Local Authority on a “per head of population” basis.

Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues.

The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local authority and other local authorities in your area.

Further information about the business rates system, including transitional and other reliefs, may be obtained at www.gov.uk.