Business rates (NNDR)

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This subtopic provides an overview of the system of national non-domestic rates (NNDR), commonly known as business rates, which applies to non-domestic hereditaments in England and Wales.

This subtopic covers:

  1. •

    the statutory framework governing NNDR

  2. •

    the assessment of rateable value

  3. •

    who is liable for payment of NNDR

  4. •

    exemptions and reliefs from liability

  5. •

    administration, billing and recovery of NNDR by billing authorities

Legislative framework

The modern system of NNDR is primarily governed by the Local Government Finance Act 1988 (LGFA 1988). LGFA 1988 established:

  1. •

    that rates were to be raised only on non-domestic property—occupiers of domestic property would instead pay community charges (from 1993 replaced by council tax, see Practice Note: Council tax)

  2. •

    that rates bills were to be set nationally by way of government specified multipliers to be applied to rateable values for each financial year

  3. •

    billing authorities are responsible for billing, collection and enforcement

  4. •

    the distribution and retention of NNDR income between central government and local authorities, which has been modified by subsequent legislation

  5. •

    a number of reliefs are available in specific...

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