This Practice Note sets out the requirements for billing, recovery, collection, transitional reliefs and exemptions of national non-domestic rates (NNDR) prior to and following the pandemic.

For further reading on other aspects of the NNDR scheme, see Practice Notes: National non-domestic rates—valuation and appeals, National non-domestic rates—business improvement district, business rate supplements and retention and Liability for business rates.

Currently, local authorities collectively retain half of the income from business rates. The other half is paid by them to central government, which uses the income to fund grants to local authorities. For the financial year 2023–24, local authorities estimate the non-domestic rating income will be £25.1bn. This is what authorities estimate they will collect after all reliefs, accounting adjustments and sums retained outside the rates retention scheme are taken into consideration.

Local authorities estimate that they will grant a total of £7.0bn of relief from business rates in 2023–24. Of this, £1.4bn is the net cost of small business rate relief (a net figure), £3.2bn is the cost of other mandatory