A Guide to Business Rates for Commercial Properties

Understanding business rates is a key part of leasing or owning a commercial property. Whether you’re opening your first business unit or managing a portfolio of properties, having a good grasp of how business rates work can help you plan ahead, manage costs, and avoid unexpected expenses.

Foden Estates ensures that all commercial property arrangements are straightforward and cost-effective. Here’s a clear and simple guide to help you understand what business rates are and how they may apply to your property.

What Are Business Rates?

Business rates are a tax charged on most commercial properties including shops, offices, warehouses, and industrial units. They’re similar to council tax for residential properties and are collected by the local authority to help fund local services.

The amount you pay depends on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA) and is based on the property’s estimated open market rental value.

How Are Business Rates Calculated?

Your annual business rates bill is calculated using:

• Rateable Value (set by the VOA)
• Multiplier (set by the government each year)

For example: If your property has a rateable value of £20,000 and the multiplier is 51.2p, your business rates would be:
£20,000 × 0.512 = £10,240 per year

There are two multipliers:

• Standard Multiplier – used for most properties
• Small Business Multiplier – used for businesses with a lower rateable value (typically under £51,000)

Always check with Foden Estates on the latest business rates.

Can You Get Any Relief?

Yes! Depending on your situation, you may be eligible for Business Rates Relief, which could reduce your bill significantly. This includes:

• Small Business Rates Relief
• Rural Rates Relief
• Charitable Rate Relief
• Empty Property Relief (usually up to 3 months for most properties)

We always recommend checking with your local council or business advisor to see what support you may qualify for.

Who Pays the Business Rates?

Typically, if you’re leasing a commercial property, you as the tenant will be responsible for paying business rates, unless otherwise agreed in the lease.

At Foden Estates, we always make sure our tenants are clear on who is responsible and we’re happy to guide businesses through the process when taking on a new unit.

Why Business Rates Matter When Leasing Commercial Property

Budgeting: Rates can be a significant expense, so it’s important to factor them into your monthly overheads.

Decision-Making: The rateable value may influence whether a property is suitable or not for your business model.

Negotiation: Understanding your responsibilities helps when negotiating lease terms or asking landlords about support or relief options.

Foden Estates – Here to Help

Navigating business rates doesn’t have to be complicated. As commercial property specialists in Warrington, the team at Foden Estates is here to offer honest, practical advice to tenants. Whether you’re renting your first industrial unit, expanding your business, or looking to sell your commercial space, we can help you make smart, informed decisions.

Get in touch with Foden Estates today — we’d love to chat about how we can support your commercial property journey.