Business rates: the 2023 revaluation

Non-domestic properties in the UK pay business rates to billing authorities (district and unitary councils). Business rate liabilities are based on each property’s assigned ‘rateable value’. This is multiplied by a ‘multiplier’ or ‘poundage’ to arrive at the property’s annual liability. Rateable values are normally assessed on the basis of the annual rental value of a property. All rateable values are regularly reassessed: this is known as a ‘revaluation’.

The next revaluations of non-domestic properties in England, Scotland, Wales and Northern Ireland will take effect on 1 April 2023. Business rates are a devolved matter and therefore each revaluation operates separately. This note sets out the background to the revaluation in England, providing some information on developments in Scotland, Wales and Northern Ireland. It sets out some of the main effects on ratepayers and local authorities, along with information on how ratepayers may appeal against new valuations.

A basic explanation of the functioning of the business rates system can be found in the Library briefing Business rates.