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Business rates are a tax on the right to occupy commercial property. They’re usually half the amount of your annual rent, which means they can have a big impact on the profitability of your business.

You’ll need to pay business rates if you use a building, or part of one, for commercial purposes. Sometimes, the landlord will charge the occupier a rent that includes an amount for the business rate.

Business rates are worked out in two steps. First, the Valuation Office Agency (VOA) estimates the annual rent a property could fetch on a set valuation date. This figure, called the rateable value (RV), is listed alongside the property’s address on the .

Next, the RV is multiplied by the uniform business rate (UBR), a factor set every year – usually around 50p per £1. This means business rates are roughly 50% of the estimated rent. The UBR typically adjusts each year in line with inflation.

In England, the business rates multiplier for 2024-25 depends on a property’s RV:

• 49.9p per £1 for properties with an RV under £51,000
• 54.6p per £1 for properties with an RV of £51,000 or more

Unoccupied properties with an RV of £2,900 or below are exempt from business rates.

Example calculation

If a commercial property has an RV of £60,000, the business rates would be:

£60,000 x £0.546p = £32,760

This is the estimated annual charge before any reliefs, discounts or exemptions are applied.

England

2023-24: 49.9p - 51.2p

2024-25: 49.9p - 54.6p

2025-26*: 50.1p - 54.7p

• The City of London adds a supplement of £0.016p (under £50,999) and £0.018p (above £51,000).
• All properties over £75,000 in Greater London are charged an extra £0.02p for Crossrail.

Scotland

2023-24: 49.8p - 51.1p - 52.4p

2024-25: 49.8p - 54.5p - 55.9p

2025-26*: 50.0p - 54.8p - 56.2p

Wales

2023-24: 53.5p

2024-25: 56.2p

2025-26*: 56.5p

* The increase is based on the estimated CPI of 0.6% in September 2024