How Bills Are Calculated

The Council carries out a series of calculations to establish the amount of non-domestic rates which are payable on a property.

First, the property's Rateable Value is multiplied by the National Multiplier to arrive at a 'notional charge'.

Second, the Council works out whether the transitional arrangements apply. The transitional arrangements limit the amount that rate bills increase or reduce from one year to the next, and so this stage of the calculation involves comparing the 'notional charge' with the charge for the previous year. If the difference between these is more than a set amount then the transitional arrangements apply.

Third, the Council deducts any rate relief. Relief can be awarded to: empty properties; charities; organisations not established for profit; certain businesses in rural areas; and businesses suffering hardship.

Rateable Value

The Rateable Value is an amount equal to the rent at which a non-domestic property might reasonably be expected to be let from year to year if the tenant undertakes to pay for all necessary repairs, insurance, rates and taxes. The level of the Rateable Value is assessed by the Valuation Officer. If the property is altered in any way (for instance through the building of an extension or the combining of several units into one) the Valuation Officer may change the Rateable Value accordingly. Rateable Values are re-assessed nationally every 5 years and the latest of these "Revaluations", taking effect from 1st April 2000, is based on rents passing on 1st April 1998.

National Multiplier

The National Multiplier figure is announced each year by the Government and is used to calculate notional rate charges. The multiplier is in effect the amount of rates payable per pound of rateable value.