Business rates reliefs

Business rates are a property tax paid by occupants of non-domestic properties. The basic rates bill is determined by multiplying the rateable value of a property (a ‘hereditament’ or ‘heritage’) by the ‘multiplier’. Properties’ rateable values are set by the Valuation Office Agency in England and Wales, the Assessors in Scotland, and Land and Property Services in Northern Ireland.

The Commons Library research briefing Business rates contains more information on the operation of the business rates system.

Ratepayers may be eligible for one or more of many mandatory and discretionary reliefs on their bill. In England, billing authorities (district and unitary councils) are responsible for deciding whether ratepayers are entitled to any reliefs. Ratepayers can appeal against the billing authority’s decision. If the occupier of the property changes, the entitlement to business rate relief may also change.

Mandatory reliefs include small business rate relief, rural rate relief, and charitable rate relief. Two transitional relief schemes, known as ‘transitional relief’ and ‘Supporting Small Businesses’, are used to smooth changes in business rate bills that are caused by the regular cycle of revaluation of rateable values. Current temporary relief schemes apply to certain renewable energy properties, certain properties in enterprise zones, film studios, freeports, and pubs.

Business rates are entirely devolved to Scotland, Wales and Northern Ireland. The devolved administrations are responsible for setting mandatory reliefs.

The UK Government website provides a list of reliefs available in England. The devolved administrations provide equivalent lists for Scotland, Wales, and Northern Ireland.