Calculating business rates

There are three stages to calculating business rates:

1. The business rates charge for the year is calculated by multiplying the rateable value by 'a multiplier'. This is an amount set each year by the government
2. The council then works out whether or not transitional arrangements apply
3. Finally, the council deducts any rate relief which may be applicable

Relief can be awarded to:

• Empty properties
• Charities
• Organisations not established for profit
• Small businesses
• Certain businesses in rural areas
• Supporting small businesses 
• Businesses suffering hardship
• Other local discounts

There are now five multipliers:

• Small business RHL multiplier 38.2p: Retail, hospitality and leisure (RHL) businesses with rateable values (RV) below £51,000
• Small business multiplier 43.2p: Non-RHL businesses with RV below £51,000
• Standard RHL multiplier 43.0p: RHL businesses with RV between £51,000 and £499,999
• Standard multiplier 48.0p: Non-RHL businesses with RV between £51,000 and £499,999
• Large property multiplier 50.8p: For all properties with RV of £500,000 and above 

From 1 April 2026, a 1p transitional relief supplement (TRS) will be applied to the business rates multiplier for one year in England. This temporary 1p surcharge is applied to all accounts but then removed within the relief, apart from businesses that do not qualify for the 2026 Transitional Relief Scheme or the Supporting Small Business (SSB) scheme.

Last updated:05/03/2026 11:18