Rate in the pound
The basis of the business rate charge on a property is the rateable value multiplied by the rate in the pound – ‘the multiplier’. However, transitional regulations may affect the actual amount payable.
The rate in the pound is set annually by central government and will normally increase in line with inflation, the exception being when a revaluation has taken place which has happened every year since 1995.
At the last revaluation in 2005, the rate poundage was actually reduced to ensure that the proportion of business rates raised nationally remained the same following the revaluation. This reduction reflected the general increases in rateable value between the 2000 and 2005 rating lists.
The rate of inflation is calculated by comparing the Retail Price Index (RPI) at the end of September prior to the start of the financial year, with the RPI for the previous September.
In the years 1997/98, 1998/99 and 1999/2000 small assessments benefited from a slightly lower rate in the pound under ‘Small Hereditament Relief’, which resulted in their rate in the pound being reduced by 0.9 of a penny.
At the 2005 revaluation the Government introduced the Small Business Rate Relief Scheme that attracts a lower poundage for qualifying rate payers. More information can be found on reliefs
Shown below are the rate poundages that have been used each year since business rates were introduced in April 1990.
| Financial Year | Rate in £ | Notes |
|---|---|---|
| 2008/09 | 46.2p | |
| 2008/09 | 45.8p | Small business rate relief multiplier |
| 2007/08 | 44.4p | |
| 2007/08 | 44.1p | Small business rate relief multiplier |
| 2006/07 | 43.3p | |
| 2006/07 | 42.6p | Small business rate relief multiplier |
| 2005/06 | 42.2p | |
| 2005/06 | 41.5p | Small business rate relief multiplier |
| 2004/05 | 45.6p | |
| 2003/04 | 44.4p | |
| 2002/03 | 43.7p | |
| 2001/02 | 43.0p | |
| 2000/01 | 41.6p | Revaluation |
| 1999/00 | 48.9p | (48.0p if RV less than £10,000) |
| 1998/99 | 47.4p | (46.5p if RV less than £10,000) |
| 1997/98 | 45.8p | (44.9p if RV less than £10,000) |
| 1996/97 | 44.9p | |
| 1995/96 | 43.2p | |
| 1994/95 | 42.3p | |
| 1993/94 | 41.6p | |
| 1992/93 | 40.2p | |
| 1991/92 | 38.6p | |
| 1990/91 | 34.8p |
Downloadable documents
- Information on small business rate relief (Microsoft Word format)
If you are unable to view documents of these types, our downloads page provides links to viewing software.
This page was last updated on 15 February 2008
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