Whether you're launching a new business or managing an existing property, one question often creates confusion: what are council tax commercial rates and how do they affect you? If you’ve found yourself tangled in terms like commercial council tax or wondering, “do businesses pay council tax?”, this guide aims to untangle it all with clear, practical answers.
Council tax commercial rates is a common term used by those unsure whether their business property is liable for Council Tax or Business Rates. To clarify, Council Tax applies to residential properties. Business properties, on the other hand, are generally subject to non-domestic rates, commonly known as business rates.
There is no such thing as commercial council tax in the formal sense. New business premises such as offices, shops, warehouses, and factories are assessed under the business rates system, not Council Tax. Council Tax is reserved for private dwellings.
In most cases, businesses do not pay council tax. However, there are some exceptions:
Though the business property itself is not subject to Council Tax, the residential part of your premises might be. For example:
Business rates are based on the property’s rateable value, which is assessed by the Valuation Office Agency (VOA). This value reflects the property’s estimated rental value on a specific date. The local council applies a multiplier to determine the amount payable.
There are various reliefs available to reduce your business rate liability:
To check your rateable value or council tax band:
Properties that are part-residential and part-commercial, like a shop with a flat above, may be billed separately. Understanding this distinction helps avoid unexpected charges and allows you to apply for appropriate reliefs.
If you’re confused about your liability or whether your business should pay council tax or business rates, contact:
No, businesses do not pay Council Tax. Instead, commercial properties are subject to Business Rates. However, if you live at your small business premises or let part of your home, Council Tax may still apply.
Navigating council tax commercial rates doesn’t have to be a headache. The key is understanding when Council Tax ends and Business Rates begin. Whether you're running a high street shop, renting out a room, or balancing home and business under one roof, clarity is crucial.
Need more personalised advice? Get in touch with your local council or a property tax advisor to ensure you're paying only what’s necessary—and nothing more.
Stay informed, stay compliant, and keep your business running smoothly.
