To calculate the rateable value of a property, the VOA estimates the yearly rent it could earn on the open market on 1 April 2024. It multiplies the floor area by a price per square metre, then adjusts for location and condition. Your council multiplies that figure by the 2026/27 multiplier to get your rates bill.
You do not actually set the rateable value of a property. The Valuation Office Agency (VOA) does.
Even so, you can work out a rough figure yourself.
Below, we show you how to calculate the rateable value of a property step by step
If you would rather have an expert check it for you, our property accountants will guide and support you through every step.
What is Rateable Value and How is it Used?
Rateable value is an important concept for business owners. It helps determine the business rates you need to pay. The Valuation Office Agency (VOA), which is part of HMRC, carefully assesses it. The rateable value is based on the estimated annual rent the property would earn if rented out at market value on a specific date.
For the 2026 list, that specific date is 1 April 2024. The VOA calls it the antecedent valuation date. In plain terms, it is a snapshot of rental values on that day.
One more point is worth stressing. The rateable value of a property is not your rent, and it is not your bill. It is simply the number your council uses to work out your business rates.
Business rates are similar to council tax for homes. These local taxes apply to commercial properties like shops, offices, pubs, warehouses, and factories. Any property not used for living purposes is included.
Business rates are charged annually. The amount you pay depends on your property’s rateable value. The VOA calculates this based on market rent as of 1st April 2024. To estimate your rates, you can multiply your rateable value by the government’s set multiplier. If you meet certain conditions, you may qualify for business rates relief, which can reduce your bill.
The VOA adjusts the rateable value every three years to match changes in the property market. You can check your current rateable value online.
How to Calculate the Rateable Value of a Property?
The Valuation Office Agency (VOA) determines rateable values for business properties as an HMRC department. Local councils apply the rateable value provided by the Valuation Office Agency to determine business rates bills.
Hence, visit the GOV.UK Find a Business Rates Valuation Service to access information about rateable values of business properties. The VOA performs rateable value calculations that local councils use to create bills and operate as bill collectors. They handle any available discounts or reliefs that you obtain.
Business rates exist for almost all buildings that are not residential establishments. The list of business properties which require payments includes shops, offices, pubs, warehouses, factories and holiday rental homes and guest houses. A structure or its segments used for business activities normally requires payment of business rates.
All business ratepayers maintain the right to request verification of the calculation information from the Valuation Office Agency. Users can examine all information the VOA has used through the provided review process. Report any noticed errors immediately to their authority.
However, any questions regarding business rates or help enquiries may be resolved by contacting the Valuation Office Agency directly. Their staff members will inform you about the whole process while offering additional details.
Your rateable value matters greatly because it directly influences the amount you will have to pay. Your business rates accuracy depends on checking the VOA website as well as validating the information they have. Your property details will remain accurate as you prevent unnecessary expense through proper review.
The VOA website provides detailed information about business rates, while additional help can be obtained directly from VOA.
The property’s total floor area is calculated by multiplying it by the price per square metre. Net Internal Area (NIA) is commonly adopted because it evaluates the accessible interior space.
Can Your Rateable Value Change?
Yes, rateable values change, so it is important to know when you are wondering about how to calculate the rateable value of a property. Property values that determine rateable value have the potential to change. This happens during a revaluation. The Valuation Office Agency (VOA) adjusts rateable values of business properties through comparisons to modern property market conditions. The most recent rateable value revaluation in England and Wales came into effect on 1st April 2026, employing property market values from 1st April 2024.
Basically, changes to your business rates may occur in various different circumstances. Your rateable value might change any time you relocate your business to a different area or make changes to your premises while altering your business operations. Users who sublet parts of their property or merge different properties might end up with a modified rateable value. Business owners need to inform authorities about rateable value changes because it determines their payment accuracy. Not reporting such changes might result in a rate increase that applies from past dates.
Additionally, certain circumstances enable businesses to obtain reduced business rate prices on a temporary basis. Your rateable value may decrease when severe local disruptions occur, for example due to flooding or roadworks. A verification of your rateable value can be checked by looking at the official entry held by the Valuation Office Agency (VOA). You should ask for an assessment of your property information while demanding modifications to your properties’ value assessment.
Which Factors Affect The Rateable Value Of A Property?
You must understand factors that determine rateable value if you want to know how to calculate the rateable value of a property. The rateable value determination for your property incorporates various essential factors for evaluation. The evaluation factors enable setting values based on actual market trends. Key factors include:
- Valuation Dates: The assessment relies on a fixed statutory date (known as the Antecedent Valuation Date) to ensure all properties are valued against the same open market conditions.
- Property Location: Position and location stand as important factors which influence how rateable value is determined.
- Size of the Property: If a property’s physical size is increased, such as through an extension, its rateable value will typically increase.
- Property Age: Property age determines its value during assessment.
- Quality of Finish: The rateable value of a property increases when its finish reaches high standards.
There exist particular factors which the assessing authority does not take into account, including:
- Letting and Sales Restrictions: All restrictions founded on ratepayer financial health or property ownership plans lose their effect.
- Ownership Scheme: Type of ownership does not play a significant role in property valuation.
Why are Reference Dates and Revaluations Important?
The establishment of reference dates remains important since these points define when to determine rental value estimates. The reference dates get selected in advance of revaluation procedures to maintain focus on the economic circumstances prevailing at that time. The rateable values applied to properties depend on these dates. Rateable values from the new rating period took effect on the official revaluation date of 1st April 2026. An appeal process exists through approved institutional procedures for those who require such recourse.
Moreover, The VOA continues to perform revaluations because they create fair and accurate business rate assessment systems. Revaluations ensure that statutory rateable values reflect how the open rental market evolved up to the fixed reference date.
What Should You Do If You Think Your Rateable Value Is Wrong?
If the rateable value seems too high or the property details are incorrect, do not assume that the figure is wrong simply because your bill has increased.
Instead, take these steps:
- Check the official valuation. Find your property using the GOV.UK valuation service.
- Review the property details. Check that the information used in the assessment is accurate.
- Compare similar properties. Look at comparable properties and their rateable values, while allowing for differences in size, location and use.
- Gather supporting evidence. Rental agreements, relevant property details and other evidence may help explain why you think the valuation is incorrect.
- Follow the official process. The current system requires you to confirm your property details online through your business rates valuation account before you can formally challenge the valuation.
You can manage the process yourself or appoint an agent to act on your behalf. Check the current requirements and time limits before making a challenge.
How Accotax Can Help
Understanding your property’s rateable value can help you review your business costs and plan ahead. However, the rateable value is only one part of your business rates bill. The multiplier, reliefs and other adjustments can also affect what you pay.
At Accotax, our specialist property accountants help businesses understand their accounting responsibilities.
If you need support with your accounts, get in touch with us to discuss your circumstances.
Conclusion
To sum up, Businesses require consideration of both property sizes and market valuation and geographical placement to determine how to calculate the rateable value of a property. Further, accurate and fair assessment depends heavily on both reference dates and revaluation procedures.
Disclaimer: All the information provided in this article on calculating the rateable value of a property, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.
