Business rates (more properly known as the national non-domestic rates) are a national tax to help fund the cost of local services.
Business Rates – 2017 budget changes (update)
The Chancellor of the Exchequer announced three measures to help businesses in his budget statement on 8 March. These are mainly intended to help those affected by the revaluation of properties, which is effective from 1 April 2017. These measures are:
- Businesses which lose some or all of their small business rate relief will have increases in their bills limited to £50 per month in 2017/18. There will also be limits to increases in later years.
- Eligible pubs will receive a £1,000 discount on their bill for 2017/18.
- Local authorities have been provided with a fund of £300 million to support businesses that face the steepest increases in their rates bill as a result of the revaluation.
The first two measures have been implemented, and we are currently in the process of informing all eligible ratepayers of their entitlement to discretionary relief relating to the third measure. Further details of all of these can be found on our Reliefs and exemptions page.
Business rates are charged on most non-domestic premises, including commercial properties such as shops, offices, pubs, and industrial properties such as warehouses and factories.
For more information, please click on 'Business rates explanatory notes' above. Here you will also find details of the more favourable rules on small business rate relief effective from 1 April 2017.
For further information on the 2017 revaluation, please go to Revaluation 2017 and rateable value appeals.
Who pays business rates?
If you use a building, part of a building or even in some instances an area of land for business, you will probably have to pay business rates. Sometimes landlords will include business rates within the rent, but the bill will remain in the name of the occupier and not the landlord.