Calculating business rates
To work out the business rate on a property, take the 'rateable value' and multiply it by the 'multiplier'.
The rateable value (RV)
A property's rateable value represents the yearly rent it would have received on the open market on 1 April 2021.
This is set by the Valuation Office Agency (VOA). They re-evaluate all commercial properties every 3 years.
Check your property's rateable value
Multiplier
The Government changes multipliers every year in line with inflation.
At present, there's a 2-tier multiplier system:
- small business multiplier for properties with a rateable value under £51,000
- standard multiplier for properties with a rateable value of £51,000 and above
Starting on 1 April 2026, the Government is introducing 3 new multipliers for business rates, so there will be 5 levels in total.
The 3 new multipliers will be:
- higher multiplier for large properties with a rateable value of £500,000 and above - this will apply a larger 'pence per pound' rate, resulting in higher bills
- lower small business multipliers for eligible businesses in retail, hospitality and leisure
- a lower standard multiplier for eligible businesses in retail, hospitality and leisure
For 2025 to 2026 the multipliers are:
- small business multiplier = 49.9 pence
- standard multiplier = 51.2 pence
For 2026 to 2027 the multipliers will be:
| Multiplier | Rateable value | Rate (pence per pound) |
|---|---|---|
| Small Business RHL Multiplier | RHL with RV under £51,000 | 38.2p |
| Standard RHL Multiplier | RHL with RV between £51,000-£499,999 | 43p |
| RHL National Small Business Multiplier | Non-RHL with RV under £51,000 | 43.2p |
| National Standard Multiplier | Non-RHL with RV between £51,000-£499,999 | 48p |
| High Value Multiplier | All hereditaments with RV £500,000 and over | 50.8p |
For further details on the qualifying factors for the new Retail, Hospitality and Leisure multipliers, visit Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure on GOV.UK
Transitional relief on revaluation of property
Your rateable value, and therefore your business rates, will change when the VOA revaluates your property.
To limit the effects of re-evaluation, we adjust your bill to gradually phase in the change.
Find out the increases or decreases on the GOV.UK website
Business rate supplement (BRS)
The Business Rate Supplements Act 2009 enables relevant authorities to levy a supplement on the business rate. This is to support additional projects aimed at economic development of the area.
Relevant authorities are:
- county councils
- unitary district councils
- the Greater London Authority
This power has been extended to the mayors of:
- Cambridgeshire and Peterborough
- Liverpool City Region
- West of England Combined Authority
- West Midlands Combined Authority
BRS does not apply to properties with a rateable value of £50,000 or less. Authorities have discretion to increase that threshold.
The total maximum BRS that can be levied by an authority is 2pence per pound of rateable value.
Levying authorities have the power to apply such reliefs to the BRS as they think appropriate. They must include in their final BRS prospectus an explanation of the rules for applying those reliefs.
The Greater London Authority levies BRS applicable to the Crossrail project in London. The rateable value threshold in 2025 to 2026 for the Crossrail BRS is £75,000.
Find out more at Paying for Crossrail: business rate supplementon the Mayor of London website