Business rates, or Non-Domestic Rates (NDR) are collected by local authorities so non-domestic hereditaments pay towards the cost of local services. More information can be found about business rates in our billing leaflet, Business rates general explanatory notes for 2026 to 2027.
How your business rates are calculated
Your business rate charge is calculated by multiplying the rateable value assigned to your hereditament, which is determined by the Valuation Office Agency, by the Non-Domestic Rate multiplier, which is set by the government.
This provides the maximum charge that you would have to pay for the assessment. Once this calculation has been made, we then apply any reductions that you are automatically entitled to, or for the 2026/27 financial year only, add on any transitional relief supplement, so we can determine the actual charge you will have to pay.
What is the Rateable Value?
A Rateable Value (RV) is the estimated annual rental value for the assessment if it were available to let on the open market at a fixed valuation date. The Valuation Office Agency are responsible for determining the Rateable Value.
We are provided with details of the rateable values in the form of a Rating List, and we use this to calculate your charge. If you would like to check what your rateable is, you can do so by visiting the find a business rate valuation page on the government website.
What is the non-domestic multiplier?
The non-domestic rate multiplier represents the number of pence in the pound of the rateable value that will be payable in business rates before any relief or reductions are applied. The calculation gives the maximum amount of business rates you would pay for that year (excluding transitional relief supplement).
Currently there are two rateable values that are used to calculate your charge. For the 2025 to 2026 financial year these are:
- the 49.9p small business multiplier. This is used when the hereditament has a rateable value of less than £51,000
- the 55.5p standard business multiplier. This is used when the hereditament has a rateable value of £51,000 or more
From 1 April 2026 there will be five multipliers, and it is our responsibility to determine which multiplier should be used for your calculation. The five multipliers are:
- the 38.2p small business RHL multiplier. This is used where the occupation of your assessment is deemed to be mainly used for retail, hospitality or leisure purposes and has a rateable value of less than £51,000
- the 43.2p small business NDR multiplier. This is used for everything else that has a rateable value of less than £51,000 that doesn’t meet the small business RHL multiplier criteria. This includes empty properties within this bracket
- the 43.0p standard RHL multiplier. This is used where the occupation of your assessment is deemed to be mainly used for retail, hospitality or leisure purposes and has a rateable value of £51,000 or more
- the 48.0p standard NDR multiplier. This will be used for everything else that has a rateable value of £51,000 or more and doesn’t meet the standard RHL multiplier criteria. This includes empty properties within this bracket.
- the 50.8p High Value NDR multiplier. This applies to all hereditaments that have a rateable value of £500,000 or more
The multiplier that has been used to calculate your charge will be indicated on your Non-Domestic Rate bill. If you believe the incorrect multiplier has been used to calculate your charge, you can request a review of this by completing the ‘Challenging Your Multiplier’ form.
The transitional relief supplement
The transitional relief supplement is being introduced from 1 April 2026 and will be in place for the 2026 to 2027 financial year only. This additional charge will be used to help fund the transitional relief scheme for the 2026 rating list. It is calculated by multiplying your rateable value by 0.01. This charge will be added to your bill and will show as transitional relief supplement. If your property receives transitional relief or supporting small business relief, this extra charge will still be applied, but it will not increase your bill beyond the limits set by those relief schemes.
The transitional relief scheme
Transitional relief limits how much a business rates bill can increase each year following a revaluation. Its purpose is to protect customers from sharp increases should their rateable value increase substantially from one rating list to the next.
You do not need to apply for this reduction as it will automatically be applied where appropriate.
For the 2023 list the following transitional limits are in place:
| Financial year | Rateable Value £20,000 or less | Rateable Value £20,001 to £100,000 | Rateable Value £100,001 or above |
|---|---|---|---|
| 2023 to 2024 | 5% | 15% | 30% |
| 2024 to 2025 | 10% | 25% | 40% |
| 2025 to 2026 | 25% | 40% | 55% |
For the 2026 list the following transitional limits are in place:
| Financial year | Rateable Value £20,000 or less | Rateable Value £20,001 to £100,000 | Rateable Value £100,001 or above |
|---|---|---|---|
| 2026 to 2027 | 5% | 15% | 30% |
| 2027 to 2028 | 10% plus inflation | 25% plus inflation | 40% plus inflation |
| 2028 to 2029 | 25% plus inflation | 40% plus inflation | 25% plus inflation |
Supporting small business relief
Supporting small business relief is applied to accounts where they have lost entitlement to a particular reduction due to exceeding the qualification threshold, as their rateable value has increased at revaluation. These reductions are small business rate relief and rural rate relief. As retail, hospitality and leisure reduction ends on 31 March 2026 this will also become a qualifying reduction from 1 April 2026.
The purpose of this relief is to help businesses transition gradually to higher rates after losing the reduction.
The 2023 supporting small business relief is capped at an increase of up to £600 per year. Accounts that qualified for the 2023 supporting small business rate relief can qualify for an additional year of relief (2026 to 2027 financial year only) under the 2026 supporting small business relief scheme.
From 1 April 2026 the new 2026 supporting small business relief scheme will be introduced. Any new accounts that meet the criteria will see their bill capped at up to £800 under the 2026 supporting small business relief scheme.
The exception to this rule is where a qualifying account benefited from transitional relief in the 2025 to 2026 financial year. Where this is the case the 2026 supporting small business relief scheme will use a different calculation to determine the maximum amount payable.
This calculation will remove the transitional relief awarded in 2025 to 2026 to determine a new chargeable amount for 2025 to 2026 financial year. The £800 cap will then be applied to this figure. In these cases, the increase from the 2025 to 2026 financial year and the 2026 to 2027 financial year will be more than £800.
Important information
Supporting small business rate relief will cease if the assessment is vacated. It cannot be reapplied after a period of vacation.
Supporting small business rate relief cannot be awarded to an account where the liable party is a registered charity, trustee of a charity or a Community Amateur Sports Club (CASC).
You do not need to apply for this reduction as it will automatically be applied where appropriate. If you believe you will exceed the subsidy limit of £315,000 in a three year period, you must contact us so the relief can be withdrawn or amended.
Pubs and live music venues relief
From 1 April 2026 additional support is being introduced to assist pubs and live music venues with their business rates. This is a 15% reduction off the net charge once any other reductions have been applied.
To qualify for pub relief, the hereditament must:
- meet the criteria to be deemed a pub and not be included on the exclusions list
- be occupied, meaning in use
- be open to the general public
- allow free entry other than when occasional entertainment is being provided
- allows drinks to be purchased from the bar
To qualify for the live music venue, the establishment must be used wholly or mainly for the performance of live music for the purpose of entertaining an audience and does not fall into the excluded categories below.
Excluded categories
If the premises fall into the categories below, they are not entitled to the pubs and live music venues relief.
If a property is used solely or mainly as:
- a restaurant, café, nightclub or snack bar
- a hotel, guesthouse or boarding house
- a sports venue
- a festival site, theatre or cinema
- a museum or exhibition hall
- a casino
If you believe you meet the criteria for the above reduction and it has not been awarded to your account, please call the Revenues Office and say business rates, when prompted, to speak to an advisor.