Rateable value revaluation
Business rates are based on the rateable value of your business property. This is an estimate of the open market rental value of a property, on a particular date. Rateable values are reviewed periodically to take account of changes in the property market. The latest revaluation took effect from 1st April 2023. It used the amounts properties could have been rented for on 1 April 2021. Some rateable values in the borough increased and others reduced.
The review of rateable values was carried out by the Valuation Office Agency. Your rateable value is shown on your business rates bill. If you disagree with it you can appeal to the Valuation Office Agency.
Big increases in business rates bills due to the 2023 revaluation are phased in over a number of years. This is done by limiting the amount a bill can change between one year and the next. You may be eligible for one or both of the schemes below depending on your circumstances.
Transitional Relief from 1 April 2023
There's a cap on the amount your bill can go up after the 2023 revaluation. The amount of the cap depends on your property's rateable value.
Maximum increases from 1 April 2023
| Rateable value (from 1 April 2023) | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
| £20,000 or less | 5% | 10% plus inflation | 25% plus inflation |
| £20,001 to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 40% plus inflation | 55% plus inflation |
Transitional relief is awarded automatically and your business rates bill shows how this has been worked out. We compare your business rates in the current financial year with what you were charged in the previous financial year. If the difference is greater than the limits shown above, an amount is taken away from your bill. This is described on your bill using the following terms:
- Notional Charge - business rates for the current financial year before any reliefs are applied
- Base Liability - business rates for the previous financial year before any reliefs were applied
- Appropriate Fraction - the percentage figure by which your business rates bill is allowed to increase
- Transitional Limited Adjustment - amount of business rates you can be charged after transition has been applied
- Transitional Adjustment - amount of transitional relief taken away from your business rates charge.
Supporting Small Business relief
Businesses who lost small business rate relief, because their rateable value increased following the 2023 revaluation, will not see their business rates bill increase by more than £50 a month (£600 a year). This relief will remain for either 3 years or until the bill reaches that amount that would have been paid without the scheme.
The discount is applied automatically to your business rates bill.