Who is liable and how are business rates calculated?
Generally, the occupier of the property is liable to pay the business rate charge. If the property is empty and not an exempt property, then liability is that of the person entitled to possession, usually the owner or leaseholder.
As the legislation states that the occupier is the liable party, tenants paying rate inclusive rent should take care. If the landlord does not pay the rates to the council then the tenant will be held liable and may need to take action against the landlord to recover monies paid.
Agreements between landlords and their tenants are a matter between themselves and are not binding on a local (or billing) authority in the event of any dispute between those parties.
Business rates collection policy
Non-domestic rates (also known as business rates) is an increasingly important revenue stream for local authorities, who are duty bound to ensure that the public purse is properly protected.
The collection policy has been written in response to the need to ensure that the administration and collection of business rates by Revenue Services (a shared service between Lancaster City Council and Preston Council), whose responsibility it is to administer and collect non-domestic rates for each authority, is carried out in a fair and consistent manner.
How are my business rates worked out?
Business rates are based on your property's rateable value. The Valuation Office Agency (VOA) maintains the Non-Domestic Rating List. This includes setting the rateable values of business properties. To understand why your property has a certain rateable value, visit GOV.UK - How your rates are calculated.
Business rates are calculated using the same rate in the pound (the multiplier) across the whole of England.
There are two national multipliers, the first is the national non domestic rate multiplier which is used to calculate the rates for all businesses.
The second multiplier is for small businesses who qualify for small business rate relief. From 1 April 2024 all hereditaments with a rateable value below £51,000 will have their demands calculated using the smaller multiplier including those in receipt of charitable relief and empty properties.
The actual amount a business will pay is calculated by multiplying the rateable value of the property by the relevant multiplier.
Some non-domestic properties are not rateable so no rates have to be paid for them, for example farm buildings, churches and public parks.
Some properties are 'composite properties', i.e. partly domestic and partly non-domestic, for example a shop with living accommodation above. In these cases, business rates are payable for the non-domestic part and council tax is payable for the domestic accommodation.
If you wish to contact the VOA please use their general enquiries form.
The business rates multiplier
The national non-domestic multipliers since 01/04/17 are as follows:
|
YEAR |
The Small Business Non-Domestic Multiplier |
The Non-Domestic Multiplier |
|
2017/2018 |
0.466 |
0.479 |
|
2018/2019 |
0.48 |
0.493 |
|
2019/2020 |
0.491 |
0.504 |
|
2020/2021 |
0.499 |
0.512 |
|
2021/2022 |
0.499 |
0.512 |
|
2022/2023 |
0.499 |
0.512 |
|
2023/2024 |
0.499 |
0.512 |
|
2024/2025 |
0.499 |
0.546 |
|
2025/2026 |
0.499 |
0.555 |
Last updated: 14 February 2025