How do I challenge my business rates bill in England?

This page covers business rates in England. Arrangements differ elsewhere in the UK. There is relevant guidance available for:

• Northern Ireland
• Scotland
• Wales

More information can be found in the Library’s briefing on Business rates.

How are business rates bills calculated?

Business rates bills are calculated based on three main factors:

1. the rateable value of the property (for most properties, this is an estimate of how much it would cost to rent the property on the open market for a year)
2. the multiplier that is applied to the rateable value
3. any reliefs or discounts that apply

All of that information appears on the bill, which is sent by the billing authority (the local council that charges business rates) each year.

The first step for anyone who wants to question their bill is to determine which of these factors they believe is wrong.

Reliefs and discounts

What reliefs and discounts are available?

There are various types of reliefs and discounts available to business rates. These may reduce bills by different amounts and may change year on year.

The government publishes further details on gov.uk about the reliefs and discounts available. Most rules about eligibility are set by the government, but billing authorities can also set discretionary local discounts.

Businesses can contact their billing authority if they do not receive a relief or discount that they believe they are eligible for.

What about small business rate relief?

Despite its name, small business rate relief depends on the rateable value of the property that the business occupies, rather than the size of the business.

Businesses that occupy only one property will receive a 100% relief on their bill if that property has rateable value is £12,000 or less. If the property’s rateable value is between £12,001 and £15,000, the business will receive a level of relief tapering down from 100% to 0%. Businesses lose 1% of relief for every £30 of rateable value their property gains (so, for instance, a property with a rateable value of £13,500 is eligible for 50% relief).

In some specific cases, businesses with more than one property will be eligible for small business rate relief.

Rateable value

How are business properties valued?

The Valuation Office Agency (VOA) revalues all business (or non-domestic) properties every three years.

Valuing non-domestic property is complex. The VOA’s Rating Manual sets out the guidance that valuers use to assign rateable values to the different types of property.

Valuers also rely on case law and valuations will depend on the facts of the case. If a ratepayer’s property has a higher rateable value than other properties nearby, this does not necessarily mean that their appeal will succeed.

Some properties may be part of a valuation scheme. This is a way of grouping similar properties in similar areas to ensure that their rateable values are consistent. The VOA’s database should show when a valuation scheme is being used to value a property.

How do I find out a property’s rateable value?

A business rates bill includes the rateable value (RV) of the property, which is set by the VOA.

The rateable value is not the final amount that the ratepayer will pay: it is multiplied by the relevant multiplier, and any relevant reliefs and discounts are applied, to calculate the final bill for a property.

Any property’s rateable value can be found by entering its postcode into the VOA’s database. This will also show details of how the rateable value has been calculated as well as the rateable values of similar properties.

How do I appeal against a valuation?

There is a three-stage process for appeals against rateable values. It is known as Check, Challenge, Appeal. Full details of the process are available on gov.uk.

After registering with the VOA, the ratepayer submits a Check case, in which they review information held by the VOA and (if necessary) provide details and evidence of why that information is incorrect. This should also include information about any external factors that might impact what they think they should pay (such as long-term roadworks). The VOA will contact the ratepayer to explain their decision.

If the ratepayer disagrees with the VOA’s decision, they may submit a challenge to the VOA. This must include the legal basis of the challenge, a proposed alternative rateable value, and reasons for that proposed value. The VOA will again contact the ratepayer (and if necessary the billing authority) to explain their decision.

If the ratepayer is unhappy with the VOA’s decision, they may appeal to the Valuation Tribunal for England (VTE). This must usually be done within four months of the challenge decision (or within 18 months of making a challenge, if the VOA has not made a decision in that time). The VTE publishes detailed guidance on the process. Importantly:

• There is a fee of £300 (or £150, for small businesses) to submit an appeal.
• Businesses do not need lawyers to undertake an appeal, but they may hire a rating valuation expert. Information is available on gov.uk about how to get professional advice.
• Businesses must continue to pay their business rates bill during the appeal process. The VOA or the VTE may decide to refund business rates payments if an appeal is successful, but there is no guarantee. This will depend on the effective date of any change to the rateable value.