Business rates

Non-domestic rates, or business rates, collected by local authorities are the way that those who occupy a non-domestic property contribute towards the cost of local services.

The rates are pooled by central government and redistributed to local authorities as part of the annual formula grant settlement.

The money, together with revenue from council tax payers, revenue support grant provided by the government and certain other sums, is used to pay for the services provided by the council and other local authorities in your area.

How are business rates calculated?

The council works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier.

The government sets the multipliers for each financial year for the whole of England. The multipliers change each year in line with inflation and to take account of the cost of small business rate relief.

The current multipliers are shown on the front of your rates bill.

What is the ‘rateable value’?

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenue and Customs.

It draws up and maintains a full list of all rateable values. The rateable value of your property is shown on the front of your bill.

The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they believe it is wrong. Further information about the grounds on which appeals may be made and the process for doing so can be found on the VOA website or from your local valuation office.

Revaluation of properties

All non-domestic properties are re-valued every five years and the current rating list came into effect on 1 April 2010. This revaluation can result in you paying much more (or less) than your previous bill. However, any large increases or reductions in charges are phased in gradually. Find out more about transitional relief.

Additionally, the valuation officer may alter the value if he/she believes that the circumstances of the property have changed.

Appeals against the rateable value of a property

You can appeal against the valuation officer’s estimate of the rateable value of a property, if you believe it is wrong. You can get further information on the grounds for making an appeal, and on how to make one, on the VOA website.

Rating advisers

Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge.

If you want to employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.

Download Explanatory notes for non domestic rates (Word doc, 182k)

How to contact us

London Borough of Tower Hamlets
Revenue Services
Town Hall
5th Floor Mulberry Place
5 Clove Crescent
London
E14 2BG

Tel: 020 7364 5010
Fax: 020 7364 4456

Email: businessrates@towerhamlets.gov.uk