The Non-Domestic Rates charge for a property is calculated by multiplying the rateable value of the property by the rate in the pound for that financial year. The rate in the pound is also known as the poundage or multiplier.
The rate in the pound is set each year by the Government and normally increases by the rate of inflation as at the end of September in the previous financial year.
When there is a national revaluation of rateable values the rate in the pound is adjusted so that the total amount of non-domestic rates collected across the country as a whole does not increase by more than inflation.
Between 2005/06 and 2016/17 a lower rate in the pound was used for smaller properties with a rateable value of less than £18,000 (outside London). From 2017/18 the lower rate applies to properties with a rateable value of less than £51,000 This is known as the small business rate relief multiplier.
The table shows the rate in the pound for each year since Non-Domestic Rates were introduced in 1990.
|Financial Year||Rate in the £||Small Business Rate in the £|
The rates charge based on the rate in the pound may be adjusted by the award of rate reliefs or due to transitional phasing.