Business Rates Explained

The Valuation Office Agency (VOA) compile and maintain a full list of all rateable values. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation.

To estimate a charge for a business property visit the gov.uk website page: Estimate your business rates.

The Valuation Office Agency may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.

Further information about the grounds on which challenges may be made and the process for doing so can be found gov.uk website: Find and check your business rates valuation.

The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the national non-domestic rating multiplier and the small business non-domestic rating multiplier.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to certain other mandatory relief[s] or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

The multiplier for a financial year is based on the previous year’s multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year. The current multipliers are shown on the front of your bill.

To estimate you business rates bill and to view the current and previous multipliers please visit the gov.uk webpage: Estimate your business rates.

The Valuation Office Agency (VOA) regularly updates the rateable values of all business and other non-domestic properties (properties that are not just private homes) in England and Wales. This is called a revaluation.   

Rateable values are the amount of rent a property could have been let for on a set valuation date. The last revaluation took place in 2023 and are due every three years as set by central government

We use these rateable values to calculate business rates bills. 

Revaluations are carried out to reflect changes in the property market, which means that business rates bills are based on more up-to-date information. 

Contacting the Valuation Office Agency 

Should you wish to challenge your rateable value please contact the VOA. Further information can be found at Check and challenge your business rates valuation: step by step 

We are responsible for anything to do with your business rates bill. The VOA is responsible for the valuation of your property. You will therefore need to contact the VOA for all queries about your rateable value. 

Finding your rateable value ​

Rateable Values can be viewed on the VOA's Find a Business Rates Valuation Service on GOV.UK. 

If your property details need changing 

To tell the VOA about changes to your property details (such as floor area sizes and parking) you need a business rates valuation account. The VOA may accept your changes and update the current and future valuations.

Sign in or register for a business rates valuation account.

Depending on individual circumstances, a ratepayer may be eligible for a reduction to their business rates bill.

Further detail on reliefs are provided in our business rates section.

If a ratepayer’s sole or main property has a rateable value which does not exceed an amount set out in regulations, the ratepayer may receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property and the number of business properties you or your business have within England.

Generally, this percentage reduction (relief) is only available to ratepayers who occupy either:

• one property OR
•  one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set in regulations.

The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set in regulations. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period.

More information is provided on gov.uk at: Local government: Business rates - detailed information.

Certain changes in circumstances may affect your entitlement to a reduction.  Examples of the types of changes which should be notified are:

• the property falls vacant
• the ratepayer taking up occupation of an additional property
• an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief

To notify us email business.rates@iow.gov.uk

A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied.

Where a property is partly occupied for a short time, in some cases the partly occupied property relief may be available. Please note: this will only apply to the part of the property that is unoccupied.

More information is available in our business rates and reliefs section.

Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club. The property must be wholly or mainly used for the charitable purposes of the charity or other charities. It must also be only used for the purposes of the club, or other clubs.

The local authority has discretion to give further relief on the remaining bill.

At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.

Transitional relief schemes are introduced at each revaluation to help those facing increases.

This relief has been funded by limiting the reduction in bills for those who have benefitted from the revaluation. Transitional relief is applied automatically to bills.

Further information about transitional arrangements can be found in our business rates and reliefs section.

Hereditaments that meet the eligibility for Retail, Hospitality and Leisure scheme will be occupied hereditaments which meet all of the following conditions for the chargeable day:

They are wholly or mainly being used:

• as shops, restaurants, cafes, drinking establishments, cinemas or live music venues
• for assembly and leisure
• as hotels, guest & boarding premises or self-catering accommodation

At the Autumn Statement on 17th November 2022, the Chancellor of the Exchequer announced that the current relief of 50% would be increased to 75% from 1st April 2023 for eligible ratepayers.

The previous Retail, Hospitality and Leisure schemes were –

   01 April 2020 to 31st March 2021        100% relief

   01 April 2021 to 31st June 2021           100% relief

   01 July 2021 to 31st March 2022           66% relief

   01 April 2022 to 31st March 2023          50% relief

The 2023/24 scheme will provide eligible occupied retail, hospitality and leisure properties with a 75% relief up to a cash cap limit of £110,00 per business.

Ratepayers who are eligible and currently in receipt of RHL will have their accounts automatically updated and notified via their annual bills.  All ratepayers will be required to complete a cash cap declaration that will be included with their annual bill.

The local authority has discretion to grant discretionary local discounts. They can also give hardship relief in specific circumstances.

Full details and application forms found in our business rates and reliefs section.

The EU State aid rules no longer apply to subsidies granted in the UK. This is following the end of the transition period on 31 December 2020.

This does not impact the limited circumstances in which State aid rules still apply under the Withdrawal Agreement, specifically Article 10 of the Northern Ireland Protocol.

The United Kingdom remains bound by its international commitments, including subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU.

This scheme is covered by 3 subsidy allowances:

• Small Amounts of Financial Assistance Allowance – you’re allowed up to £315,000 (subject to exchange rates) over any period of 3 years.
• COVID-19 Business Grant Allowance – you’re allowed up to £1,600,000.
• COVID-19 Business Grant Special Allowance - if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met.

Grants under these three allowances can be combined for a potential total allowance of up to £10,935,000. This will be subject to exchange rates.

Certain types of properties in a rural settlement with a population below 3,000 may be entitled to a discount. 

The property must be:

These type of properties must have a rateable value of less than £8,500.

or

These type of properties must have a rateable value of less than £12,500. 

The property has to be occupied. 

An eligible ratepayer is entitled to relief of the full charge. The local authority has discretion to give further relief on the remaining bill.

Full details can be obtained from the Isle of Wight Council Business Rates department by emailing business.rates@iow.gov.uk