While council tax is charged on residential properties, most non-residential properties are subject to a non-domestic equivalent.
This tax is known as business rates, and while central government has some influence over the rates, your local authority administers the system.
If you use part of a building or a whole building for a purpose other than to live in it, it’s quite likely that you’ll have to pay business rates.
Properties liable for business rates include offices, shops, warehouses, pubs and other customer-facing premises. If you are considering hospitality premises, see our guide to starting a coffee shop in the UK, and more information on GOV.UK. If you work from home rather than separate premises, see which home office expenses are allowable.
Furnished holiday lets and self-catering properties may also be charged business rates instead of council tax if they meet the relevant qualifying conditions. Farm buildings are generally exempt, as are certain buildings used to help people with disabilities.
The key time for business rates is around February or March, when the bill is sent to you after a calculation by the local authority. The bill will cover the following financial year.
How are business rates calculated?
In England and Wales, each property has a rateable value, based on its estimated open-market rental value.
The latest revaluation took effect on 1 April 2026, using rental values as at 1 April 2024. These valuations are carried out by the Valuation Office Agency (VOA).
To estimate your business rates for the year, multiply your property’s rateable value by the appropriate multiplier, then deduct any reliefs you qualify for.
England introduced new multipliers in April 2026, including lower rates for qualifying retail, hospitality and leisure properties.
See current business rates multipliers on GOV.UK.
The multiplier is set by the government rather than your local authority. Different rules apply in Wales.
There are a couple of possible hitches that may arise during the business rates calculation process.
Firstly, the Valuation Office Agency might ask you to provide additional information about the property your business operates from if they need more information before determining its rateable value.
It can sometimes take a while to gather all of this information, so if you’re concerned that you’ll run out of time, contact the Valuation Office Agency to request more time.
It’s also possible that once your rates have been calculated, you’ll conclude that there’s been an error in the calculation process.
If you think this may have happened to you, you can challenge the rateable value through the VOA. Your local council deals with your bill and any applicable reliefs.
Find out your business rates valuation
Find out what the rateable value of your business premises is here.
What is the small business rate relief scheme?
Certain types of businesses are eligible for tax relief on their business rates, and it’s a good idea to find this out so that you can take full advantage of any discounts you can secure.
If you’re a small business, you may be able to claim small business rate relief.
The rules differ across the UK. The following thresholds apply to England.
Under the current rules, eligible small businesses can claim relief if their property’s rateable value is below £15,000.
If your property’s rateable value is £12,000 or less, you’ll generally receive 100% relief. If the figure is between £12,000 and £15,000, the relief decreases proportionately from 100% to 0%.
From April 2027, the government is increasing the 100% relief threshold from £12,000 to £18,000 for qualifying retail, hospitality and leisure properties in England. The change was announced in October 2026. The existing thresholds continue to apply until then, and the increase is not a blanket change for every small business property.
Your business may also need to use only one property to qualify for relief, but if you are using more than one, you may still be eligible.
In this case, you’ll be able to get relief on your main property provided that the total rateable value of every property associated with your business is below £20,000 (or £28,000 if your properties are in London), and none of your business’s other properties has a rateable value above £2,899. You may also continue to receive relief on your main property for a year after taking on an additional property.