If you're a business owner navigating commercial property costs, you've likely heard the term rateable value. But what does it actually mean, and how does it affect your Small Business rates bill? This guide breaks it all down in a simple, jargon-free way, so you can make smarter decisions and possibly even save money.
The rateable value is the estimated annual rental value of a commercial property on a specific date, as assessed by the Valuation Office Agency (VOA). It's used to calculate your business rates bill, making it a critical number for budgeting and tax planning.
Simply put, it's what your property might rent for if it were available on the open market. This figure is not set by landlords or tenants, but by the government, and is subject to periodic revaluations.
While you can't calculate the exact figure yourself, you can get an idea using market rents in your area. The VOA considers factors such as:
To find and check your business rates valuation, head to the UK Government's business rates checker. Here’s how:
The government periodically reassesses rateable valuations to reflect changing market conditions. These revaluations help ensure fairness but can result in significant increases or decreases to your business rates.
Your business rates value is based on the rateable value multiplied by a set multiplier. The multiplier is set annually by the government and may differ in England, Wales, Scotland, and Northern Ireland.
Rateable Value × Multiplier = Annual Business Rates
You can check your business rate valuation online via the government portal. If you believe your valuation is too high, you can challenge it using the "Check, Challenge, Appeal" (CCA) system.
For Northern Ireland (NI), the Land & Property Services (LPS) handles business valuations. You can check your NI rateable value on their dedicated portal.
Understanding your rateable value of property helps you:
If your retail shop has a rateable value of £15,000 and the multiplier is 51.2p, then your annual business rates are £7,680. Simple, but impactful.
While you can't directly change it, you can:
Rateable value is the estimated annual rental value of a property used to calculate business rates. It’s assessed by the Valuation Office Agency or its equivalent.
They are typically updated every 3 to 5 years during a revaluation cycle.
Only if used for business purposes — like a shop with a flat above it.
Whether you run a café, warehouse, or office space, understanding your rateable value helps you manage cash flow and ensure your new business isn’t overpaying. It’s worth checking regularly, especially after changes to your property or area.
Need help navigating your business rates? Speak to a local advisor or visit the official government checker to find and verify your valuation today.
