Introduction to non-domestic rates (business rates)

Non-domestic rates are a tax on non-domestic properties. You may also know them as ‘business rates’.

Who needs to pay

Businesses, charities and public sector organisations have to pay non-domestic rates.

You’ll usually pay them if you're the occupier of a non-domestic property. In some cases the owner has to pay, for example if the property is empty.

Non-domestic properties include:

• shops
• offices
• pubs and hotels
• warehouses
• factories
• public buildings such as schools and hospitals

You might also need to pay non-domestic rates if you use part of a house for business purposes. For example, if you work from home or let out a room.

If you're not sure if you need to pay non-domestic rates on your property, contact your local assessor.

If you're renting a property, check the terms of your lease to see if you're responsible for paying non-domestic rates.

What you need to pay and when

Your local council will usually send you a rates bill in February or March each year. This will tell you what you need to pay and when.

Find out more about how your bill is calculated.

You can also use our calculator to estimate your bill.

Estimate your non-domestic rates bill

Getting non-domestic rates relief (discounts)

You might get relief if your property:

• has a small rateable value – through the Small Business Bonus Scheme
• is in a rural area
• is used for charitable or religious purposes
• has a new occupant, but was empty for more than 6 months before that

You’ll need to apply for most reliefs.

Find out more about non-domestic rates reliefs.

Who does not need to pay

Some types of premises are exempt from non-domestic rates. These include:

• religious buildings
• agricultural land and buildings
• fish farms
• rural premises with Automatic Telling Machines (ATMs)
• oil and gas pipelines
• overseas armed forces premises in the UK

This list is not exhaustive. Your local assessor will be able to tell you if your property is exempt.