How is Rate Liability Calculated?
Many
people will say, that the amount you pay is the Rateable
Value (RV) multiplied by the Uniform Business Rate (UBR)
for the year.
It
is not always that simple.
The
method of calculation rate liability depends on the circumstances.
Here are some of the most common. These are primarily
for England but there are Welsh and Scottish equivalents.
If
the property is NOT affected by Transitional
Arrangements, and the occupier is NOT
a small business, liability for the year will be determined
by the following formula.
RV
x Non Domestic Rating Multiplier
(this is the nearest to RV x
UBR. As from 2005 the term UBR is not strictly
correct, the more correct terminology is Non Domestic
Rating Multiplier)
If
the property IS affected by Transitional
Arrangements, and the occupier is NOT
a small business, liability for the year will be determined
by the following formula.
BL
x AF
If
the property is NOT affected by Transitional
Arrangements, and the occupier IS a small
business, liability for the year will be determined by
the following formula.
RV
x Small Business Non Domestic Rating Multiplier / E
If
the property IS affected by Transitional
Arrangements, and the occupier IS a small
business, liability for the year will be determined by
the following formula.
BL
x AF / E
If
the property is created as the result of a Split,
Merge or Reconstitution, liability will be calculated
using the following formula:
R
x J/S
If
the RV of the property is reduced as a result on an MCC,
liability from the date of the MCC will be determined
by the following formula:
R
x N/J
What
do all the letters mean? |
