Business Rates

Business rates are charged on commercial properties and collected by local authorities. Rates are normally payable by the occupiers of business premises. These will usually be either the owner if he / she is the occupier of the property or the leaseholder. If the property is empty, usually the owner or leaseholders will still pay rates � but at a reduced level � but for some types of premises such as factories no rates will be payable.

Each non-domestic property has a rateable value and is re-valued every five years. The rateable value broadly represents the annual rent the property could have been let for on the open market on a particular date, on full repairing and insuring terms. For the current rating list, this date was set as 1 April 1998.

Rateable values are a key factor in the calculation of business rates but they are not the rates bill. Local authorities are responsible for calculating actual rates bills and for collecting rates and will use the rateable value in working out how much you have to pay. The rates payable are calculated by multiplying the rateable value by the multiplier set by the government annually (currently 45.6p), less any relief�s that are available.

In simple terms your rates bill is worked out as follows:

(rateable value x multiplier) less any relief�s = rates bill eg for a property with a rateable value of �10,000 �10,000 x 45.6 p - �4,560 less any relief�s available You can find out the rateable value of any business premises in a local authority area from the Rating List. This is a public document and can be viewed in the Valuation offices, local authority offices and libraries. You can also look up a rateable value on line by visting the Valuation Office website at www.voa.gov.uk

If you use part of your house for business purposes you may be liable to business rates on the proportion of your property used for business purposes. The Valuation Offices has a guide �Business Rates and the Council Tax: working from home�.

For further information go to www.voa/gov/uk/publications/public_fact_sheets/bus_rates/ bus_rates_2.html

For enquiries regarding business rates on premises in Southampton local authority area contact Southampton City Council tel023 8083 2997