Your premises is given a rateable value by the Valuation Office Agency which we then use to calculate how much business rates you should pay.
The details of each premises, including a brief description and the rateable value, are held in what is called a local rating list. Where premises are partly domestic and partly non-domestic, the rateable value only relates to the non-domestic part because council tax will be payable on the domestic part.
Rateable values are usually reviewed every five years - this is called a revaluation. A new revaluation is scheduled to take effect from 1 April 2023, based on market rents at 1 April 2021.
Details of the rateable value for your premises, and how it has been calculated, are shown on a summary valuation for the property. Find more information, including the current rateable value of a property in England or Wales and view the summary valuation on the Valuation Office Agency website.
A copy of the local rating list is available to view at:
The rateable value is multiplied by a figure set annually by the Welsh Government (known as the multiplier) to calculate the rates payable.
For the financial year starting on 1 April 2022, the multiplier has been set at 53.5 pence. If the rateable value of your property was £20,000, we would multiply it by 53.5p to get a total of gross rates payable for the year of £10,700.
If you are entitled to any form of rate relief or exemption, this sum is then reduced accordingly.
The multiplier usually changes each year in line with inflation (Consumer Prices Index) except in the first year following a revaluation when it is used to ensure that the overall changes in rateable values have a revenue-neutral effect (i.e. the total amount of business rates charged remains the same). The Welsh Government can also make regulations to specify an alternative amount that must be lower than the consumer prices index for September of the preceding financial year.
What to do if you think your rateable value is wrong
If you disagree with the rateable value of your property you may appeal to the Valuation Office Agency, subject to certain time limits, for one of the following reasons:
- The initial rateable value shown in the rating list is wrong, in your opinion.
- The rateable value is inaccurate due to a material change in the property. For example, part of the property has been demolished; you have enlarged the property; there has been a change in its use; a physical change in the locality or a change in the use of a neighbouring property.
- The Valuation Office Agency has amended the rateable value entered in the local rating list and you think the new value is wrong.
- There is an error in your property's entry in the rating list e.g. the description is wrong.
- Your property is shown in the list but ought not to be shown e.g. agricultural building.
- You believe a decision of the Valuation Tribunal or higher Court has a bearing on the rateable value of your property
In certain circumstances, your appeal will be passed to the Valuation Tribunal for their consideration.
You cannot withhold payment or refuse to pay business rates because you are waiting for an appeal against the rateable value of a property to be decided.
The Valuation Office Agency (VOA) values all business properties for business rates. The valuation is based on information the VOA holds about your property. You can view and update this information at gov.uk/voa/valuation.
You can contact the VOA at gov.uk/contact-voa. If you are unable to use the online service you can also contact the VOA on 03000 505 505.
The VOA is contacting businesses to request rental information to support the next revaluation of business rates in England and Wales – Revaluation 2023.
If you receive a request please complete and submit your up-to-date details. It is important to provide this information to ensure business rates are fair and accurate. You can find more information at Providing rental information for Revaluation 2023 - GOV.UK (www.gov.uk) .