How Are Business Rates Calculated?
Business rates are calculated by multiplying the ‘Rateable Value’ of a property by the uniform business rate (UBR). The ‘rateable value’ is the Valuation Office’s estimate of a property’s market rent at a set valuation date. We are currently in the 2010 Rating List with rateable values being based on a valuation date of 1st April 2008. Please note that increases (or decreases) in business rates may be phased in over a period and the actual amount payable could be higher or lower than the simple multiplication process, this is known as Transitional Relief.