Business Rates Data
UNIFORM BUSINESS RATES (UBR)
Rate Year Large Small
2016/17 49.7p 48.4p
2017/18 47.9p 46.6p
2018/19 49.8p 48.5p
2019/20 51.5p 50.2p
2020/21 52.5p 51.2p
2021/22 53.5p 52.2p

UBR AssumptionsOpen

UBR Assumptions

For 2016/17 a large property was defined as one for which the RV as at 1 April 2010 is £25,500 or more in London, or £18,000 or more elsewhere.

For subsequent years a large property is one for which the RV as at 1 April 2017 is £51,000 or more.

Inflation assumption

The UBR and transitional arrangements estimates after inflation assume, in line with OBR forecasts, that the Retail Prices Index will increase by 4% at September 2017 and 3.5% pa at September 2018. The estimates for subsequent years, for which the Government has announced that CPI will be the index adopted, are based on a 2% inflationary increase.

London Crossrail SupplementOpen

London Crossrail Supplement

From April 2017, all properties in London with assessments above RV £70,000 pay a Business Rates Supplement for Crossrail of 2p per £ RV.

City of London SupplementOpen

City of London Supplement

Since 2016/17 the City of London Corporation has imposed a 0.5p UBR surcharge. For previous years it was 0.4p.

Transitional ArrangementsOpen

Transitional Arrangements

Maximum Annual Increases in Rates Payable
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Rate Year In real terms After inflation
2017/18 42.0% 44.8%
2018/19 32.0% 37.4%
2019/20 49.0% 54.2%
2020/21 16.0% 18.3%
2021/22 5.0% 7.0%
Rate Year In real terms After inflation
2017/18 12.5% 14.7%
2018/19 17.5% 22.3%
2019/20 20.0% 24.2%
2020/21 25.0% 27.5%
2021/22 25.0% 27.4%
Rate Year In real terms After inflation
2017/18 5.0% 7.1%
2018/19 7.5% 11.9%
2019/20 10.0% 13.8%
2020/21 15.0% 17.3%
2021/22 15.0% 17.2%

Maximum Annual Decreases in Rates Payable
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Rate Year In real terms After inflation
2017/18 4.1% 2.2%
2018/19 4.6% 0.7%
2019/20 5.9% 2.6%
2020/21 5.8% 3.9%
2021/22 4.8% 3.0%
Rate Year In real terms After inflation
2017/18 10.0% 8.2%
2018/19 15.0% 11.5%
2019/20 20.0% 17.2%
2020/21 25.0% 23.5%
2021/22 25.0% 23.6%
Rate Year In real terms After inflation
2017/18 20.0% 18.4%
2018/19 30.0% 27.1%
2019/20 35.0% 32.7%
2020/21 55.0% 54.1%
2021/22 55.0% 54.1%

Inflation assumption

The UBR and transitional arrangements estimates after inflation assume, in line with OBR forecasts, that the Retail Prices Index will increase by 4% at September 2017 and 3.5% pa at September 2018. The estimates for subsequent years, for which the Government has announced that CPI will be the index adopted, are based on a 2% inflationary increase.

Small Business Rates Relief (SBRR)Open

Small Business Rates Relief (SBRR)

SBRR can be claimed if a ratepayer’s sole or main property’s RV is below £15,000. For 2017/18 and subsequent years there is 100% relief for RVs no greater than £12,000 with a sliding scale of relief between RV £12,000 and £15,000.

Generally, SBRR is only available to ratepayers who occupy either:

  1. one property, or
  2. one main property and other additional properties that each have a RV below £2,900 with an aggregate RV for all its properties below £20,000 (below RV £28,000 in London).

Other ReliefsOpen

Other Reliefs

Empty rates relief

No business rates are payable for the first 3 months that a property is empty, extended to 6 months in the case of certain manufacturing and storage properties. After this period rates are payable in full unless exemptions apply. No empty rates are payable for vacant properties assessed at below RV £2,900.
New build empty property relief

Newly built commercial property completed between 1 October 2013 and 30 September 2016 is exempt from empty property rates for the first 18 months. This includes the initial 3 or 6 month exemption and so properties may, if unoccupied, be exempt from non-domestic rates for up to an extra 15 or 12 months.

Charities and CASCs

Charities and community amateur sports clubs can apply for relief of up to 80% if a property is used for charitable purposes. Local councils can provide additional ‘discretionary relief’ (up to 100%).

Enterprise zones

Businesses starting up or relocating to an enterprise zone by March 2018 can qualify for enterprise zone business rates relief of up to 100% for 5 years, to a maximum of £275,000.

Rural rate relief

Businesses in a rural area with a population below 3,000 can obtain 100% business rates relief if the business is:

  • the only village shop or post office with a rateable value of up to £8,500
  • the only public house or petrol station with a rateable value of up to £12,500

Local discounts and hardship relief

Local authorities have a general power to grant discretionary local discounts and some provide hardship relief if your business meets certain criteria.

Note

Many of the reliefs and discounts identified in this App are subject to European State Aid de minimis thresholds. An enterprise may not receive relief which qualifies as European State Aid amounting to greater than Є200,000 (around £170,000 in March 2017) over a rolling three year period. The ceiling for de minimis aid for undertakings involved in road transport is Є100,000

INTEREST ON REFUNDSOpen

INTEREST ON REFUNDS
Rate Year Rates of interest upon refunds of overpaid rates
2005/06 3.75%
2006/07 3.50%
2007/08 4.25%
2008/09 2.25%

From 2009/10 no interest has been payable on refunds of overpaid rates

Budget 2017 MeasuresOpen

Budget 2017 Measures

At the Spring 2017 Budget, three additional discretionary reliefs were announced, each of which will be application based and subject to European State Aid thresholds.

Pubs Discount
A £1,000 discount for 2017/18 only for public houses with Rateable Values below £100,000.

Support for those losing Small Business Rates Relief (SBRR)
For properties losing some or all of their 2016/17 SBRR, the maximum annual increase in liability is capped at £600 for each of the next five years.

Additional Discretionary Relief
The Government is providing a £300m fund (covering 2017/18 to 2020/21) to permit local councils to provide financial support to businesses most adversely affected by the 2017 revaluation. Qualifying criteria are awaited.

UNIFORM BUSINESS RATES (UBR)
Rate Year Large Small
2016/17 51.0p 48.4p
2017/18 49.2p 46.6p
2018/19 51.1p 48.5p
2019/20 52.8p 50.2p
2020/21 53.8p 51.2p
2021/22 54.8p 52.2p

Small Business Bonus SchemeOpen

Small Business Bonus Scheme

Ratepayers with aggregate assessments below RV £18,000 qualify for rates relief.

No rates are payable for accumulative RVs up to £15,000, and 25% for RVs up to £18,000. Where the cumulative RV falls between £18,000 and £35,000, 25% relief is available to individual properties up to RV £18,000.

Other ReliefsOpen

Other Reliefs

Empty rates relief

All empty commercial properties will receive 50% relief on the liability that would have applied if the property was occupied. The relief is applicable for an initial three month period after which the property will receive a 10% relief.  Unoccupied industrial property will receive 100% rates relief for an initial six months and thereafter 90% of the rates liability will be payable.

Listed buildings and properties with a rateable value under £1,700 are exempt from empty property rates.

Fresh start scheme

Businesses occupying certain long-term, empty properties may be entitled to a 50% business rates discount for their first year if the property had previously been empty for at least 12 months has a rateable value under £65,000 and the last use was as a shop, office, restaurant, pub or hotel.

New start relief

Newly built commercial property built on or after 1 April 2013 may be entitled to rates relief up to 100% for 15 months while they are empty.

Charities and CASCs

Charities can apply for relief of up to 80% if a property is used for charitable purposes. Local councils can provide additional ‘discretionary relief’ (up to 100%). Non-profit recreation clubs are not automatically entitled to relief, but local authorities can grant discretionary relief of up to 100%.

Enterprise areas

Businesses in certain sectors setting up or relocating to an enterprise area site can qualify for up to 100% rates relief until March 2020.

Rural rate relief

Businesses in a designated rural area with a population below 3,000 can obtain 100% business rates relief if the business is:

  • a small food shop, general store or post office with a rateable value below £8,500
  • a small hotel, public house or petrol filling station with a rateable value of up to £12,750
  • any other business providing a benefit to the community with a rateable value of up to £17,000

Renewable energy generation relief

Community Organisations that produce heat or power from certain renewable sources may obtain rates relief on sliding scale from 2.5% to 100% based on the rateable value of the property from which generation activity is undertaken.

Renewable generation property built between 1 April 2016 and 31 March 2017 may be eligible for 10% rates relief if it has a rateable value up to £500,000 and 1.5% rates relief if above £500,000.

 

Hardship relief

Local authorities are able to provide hardship relief if they believe that it is in the interests of the local community to do so.
Note

Many of the reliefs and discounts identified in this App are subject to European State Aid de minimis thresholds. An enterprise may not receive relief which qualifies as European State Aid amounting to greater than Є200,000 (around £170,000 in March 2017) over a rolling three year period. The ceiling for de minimis aid for undertakings involved in road transport is Є100,000.

INTEREST ON REFUNDSOpen

INTEREST ON REFUNDS
Rate Year Rates of interest upon refunds of overpaid rates
2005/06 3.75%
2006/07 3.50%
2007/08 4.25%
2008/09 2.25%

From 2009/10 no interest has been payable on refunds of overpaid rates

2017/18 Additional ReliefsOpen

2017/18 Additional Reliefs

To reflect the scale of increased rates liability for specific sectors and localities, the Scottish Government has capped increases for certain classes of property for 2017/18. These reliefs are subject to European State Aid and will therefore require individual applications.

Hospitality sector – properties used for any qualifying purpose have increases in 2017/18 capped at 14.75% above rates payable in 2016/17. Qualifying uses include hotels, public houses, guest houses, holiday lets, cafes, restaurants and other categories within the hospitality sector;

Offices in Aberdeen and Aberdeenshire only – capped similarly at 14.75% above rates payable in 2016/17

Loss of Small Business Bonus – properties which previously benefitted from 100% small business bonus scheme but whose 2017 RV has increased to above £15,000 will pay no more than 50% of the full 2017/18 rates liability.

UNIFORM BUSINESS RATES (UBR)
Rate Year All properties
2016/17 48.6p
2017/18 49.9p
2018/19 51.9p
2019/20 53.7p
2020/21 54.8p
2021/22 55.9p

UBR AssumptionOpen

Inflation assumption

The UBR estimates after inflation assume, in line with OBR forecasts, that the Retail Prices Index will increase by 4% at September 2017 and 3.5% pa at September 2018. The estimates for subsequent years, for which the Government in England has announced that CPI will be the index adopted, are based on a 2% inflationary increase. We have assumed that Wales will follow the same approach.

Small property rates relief (SPRR)Open

Small property rates relief (SPRR)

Most occupied properties with assessments up to RV £6,000 continue to pay no rates in 2017/18. Those with RVs between £6,001 and £12,000 receive relief on a tapered basis. There are specific reliefs available for certain low value retail and child care premises and post offices.

Other ReliefsOpen

Other Reliefs

Transitional relief

A transitional relief scheme applies from 1 April 2017 for ratepayers experiencing a reduction in Small Business Rates Relief due to increases in their Rateable Value at the 2017 revaluation. Where applicable the increase in liability will be limited to 25% above 2016/17 liability in 2017/18, 50% in 2018/19 and 75% in 2019/20.

Empty property rates relief

No business rates are payable for the first 3 months that a property is empty, extended to 6 months in the case of certain manufacturing and storage properties. After this period rates are payable in full unless exemptions apply.

New developments scheme

Newly built commercial property completed between 1 October 2013 and 30 September 2016 is exempt from empty property rates for the first 18 months. This includes the initial 3 or 6 month exemption and so properties may, if unoccupied, be exempt from non-domestic rates for up to an extra 15 or 12 months.

Charities and CASCs

Charities and community amateur sports clubs can apply for relief of up to 80% if a property is used for charitable purposes. Local councils can provide additional ‘discretionary relief’ (up to 100%).

Enterprise zones

Certain new start-up businesses located within a Welsh Enterprise Zone may receive rates relief up to £55,000 in 2017/18.

Hardship relief

Local authorities are able to provide hardship relief if they believe that it is in the interests of the local community to do so.

Retail, food and drink relief

A relief scheme is intended to help certain shops, pubs and restaurants which have seen significant rates increases at the revaluation, details of which have yet to be announced.

Note
Many of the reliefs and discounts identified in this App are subject to European State Aid de minimis thresholds. An enterprise may not receive relief which qualifies as European State Aid amounting to greater than Є200,000 (around £170,000 in March 2017) over a rolling three year period. The ceiling for de minimis aid for undertakings involved in road transport is Є100,000.

INTEREST ON REFUNDSOpen

INTEREST ON REFUNDS
Rate Year Rates of interest upon refunds of overpaid rates
2005/06 3.75%
2006/07 3.50%
2007/08 4.25%
2008/09 2.25%

From 2009/10 no interest has been payable on refunds of overpaid rates

Retail, food and drink reliefOpen

Retail, food and drink relief

A relief scheme has been implemented for 2017/18 only to help certain shops, pubs and restaurants which have seen rates increases at the 2017 revaluation. Eligible businesses with assessments between RV £6,001 and RV £12,000 can apply for a discount of up to £500. Those with RVs between £12,001 and £50,000 can apply for a discount of up to £1,500.

Note

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