Business Rates FAQs

What are business rates?
Business rates are the way in which businesses and other occupiers of non-domestic properties contribute towards the cost of the services provided by the local council.

What is a rating list?
The rateable value of your property, and those of all other business properties, appears in rating lists published by the Valuation Office Agency. Updated lists came into effect on 1 April 2005 lasting for five years and are available at the Agency's offices and on their website. View the current rating lists.

What is revaluation?
A revaluation or reassessment of all rateable values is carried out by the Valuation Office Agency every five years to ensure that they are kept up-to-date and reflect the changes in the property market. The next revaluation comes into effect on 1 April 2010.

What is a summary valuation?
The summary valuation produced by the Valuation Office Agency explains how the rateable value of your business property has been calculated.

What is a rateable value?
The rateable value for your property is a figure based on a professional assessment of the annual rent of a property if it was available to let on the open market at a fixed valuation date.

How is my rateable value calculated?
The Valuation Office Agency gathers as much evidence as possible of actual rents paid for properties throughout England. This evidence, together with other information, is used by the agency to determine the levels of rental value appropriate in a particular location for different types of property.

Is the rateable value the amount I have to pay in rates?
No. The rateable value forms the basis of the calculation of your rates bill. It is multiplied by a factor set by Central Government each year called the multiplier.

How can I find out what my rateable value is?
Your rateable value is printed on your summary valuation, or if you don't have one of these on your rates bill, you can look up your rateable value here or you can find out what it is from your local Valuation Office.

When will I get my summary valuation?
Summary valuations were distributed during October 2004.

What if the details of my property on my summary valuation are incorrect?
You should amend any incorrect details and return the summary to the Valuation Office that sent it to you.

What is a retail zone?
Retail zones or "zoning" are used as a means of determining the rateable value of a typical shop. 

Why is my rateable value nothing like the rent that I actually pay?
The rateable value is the assessment of the rent your property would fetch in annual rent if it were available on the open market on a particular date. The rateable value may be different to the rent you pay for a number of reasons - for example, your rent may have been agreed at a different time.

What do I do if I disagree with my rateable value?
If the details about your property are correct but you disagree with your rateable value, you can make an appeal from 1 April 2005. Details of the appeals procedure can be found on the Valuation Office website.

When will I get my bill?
The council sends out rates bills in March of each year.

What if I can't afford to pay my bill?
If you have problems paying your business rates bill please let us know immediately. We may take enforcement action to recover any payments which are overdue. It is important that you contact the business rates section as soon as possible if you are having difficulty in paying your business rates to discuss the problem. We may be able to help you without having to take recovery action. Our telephone number is 01782 238274 or you can visit the Customer Services office at Swann House, Boothen Road, Stoke.

Details of the business rates recovery costs for 2006/2007 can be found here.

How do transitional arrangements work?
Transitional arrangements work by phasing in any dramatic increases or decreases in rates liability following a revaluation over a number of years.

Are any non-domestic properties exempt from business rates?
Yes. These include:

Agricultural land and buildings

Fish farms

Churches and other places of worship

Sewers

Public parks

Certain property used for disabled people

Swinging moorings for boats

How do I appeal against my rateable value?
You can appeal directly to your local Valuation Office who can provide you with the appropriate form or you can appeal online using the Valuation Office website. Both options are free. Or you may wish to approach a rating agent who can advise you on an appeal and will handle the process for you.

What are valuation tribunals?
There are 56 valuation tribunals in England.  Each one is an independent organisation that deals with appeals about non-domestic rates and council tax.  The Office of the Deputy Prime Minister finances valuation tribunals.

Valuation tribunals are independent of both the Valuation Office Agency and the billing authority.

Members of the tribunals are local people who are volunteers.  Although they may not be professionally qualified, they do receive formal training and are experienced in hearing appeals.  Usually three members will hear your appeal, although two members can hear an appeal if everyone agrees.  A clerk, who is a paid employee of the tribunal, advises on points of procedure and law.

Valuation tribunals provide a free service so they cannot award costs against you.  However, you do have to meet your own costs in going to the tribunal hearing.  Wherever possible, appeals are held locally. For more information contact the business rates section on 01782 238274.

Guidance about valuation tribunals from the Valuation Tribunal Service website.

What if I run a bed and breakfast?

View a basic guide to the rating of guest houses and bed and breakfast accommodation.

What if I rent out a holiday home?

View a basic guide to the rating of holiday homes.

What if I work from home?
If you work at or from home, the part of the property used for work may be liable for business rates while the remainder of the property will continue to be liable for council tax, although an alteration may be made to its banding.  

View a basic guide to the rating for people working from or at home.

Federation of Small Businesses (FSB)
The FSB is the largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small businesses. Formed in 1974, it now has over 190,000 members across 33 regions and 230 branches. It offers help and support 24 hours a day, while its lobbying arm - led by the Westminster Press and Parliamentary office - applies pressure on MPs, Government and Whitehall, lobbies politicians in the constituences and puts the FSB viewpoint over to the media. It is a non-political organisation.

Follow this link to the Federation of Small Businesses website.