Explanatory notes

Local Authorities do not have to send individual copies of explanatory notes when we issue bills. We have to publish explanatory notes online instead.

These notes are to help you understand more about your bill and cover:

• What business rates are
• Rateable values
• Reliefs
• Exemptions
• Transitional arrangements

You can find out how to apply for reliefs on our business rates pages.

General explanatory notes – 2026/27

Non-domestic rates

Non-domestic rates or business rates is a tax on property recorded in the local rating list.

The revenue collected is spent on provision of local services. You can find an overview of business rates on the GOV.UK website. The legislation relating to non-domestic rates can be found in the Local Government Finance Act 1988 and the Collection and Enforcement Regulations 1989 as amended.

Rateable Value

The rateable value is the estimated annual rental value of a commercial property which is calculated by the Valuation Office Agency, who are responsible for maintenance and compilation of the non-domestic rating list. The rateable value broadly represents the yearly rent a property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1 April 2024.

All properties apart from those that are exempt have a rateable value.

The Valuation Office Agency may alter the valuation if circumstances change.

The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is inaccurate.

Further information on matters which can be appealed or challenged, including the process for doing so, is available on the GOV.UK page for finding a business rates valuation.

Revaluations

The Valuation Office Agency (VOA) regularly updates the rateable values of all business and other non-domestic properties – properties that are not just private homes – in England and Wales. This is called a revaluation.

Rateable values are the amount of rent a property could have been let for on a set valuation date. There is a new valuation list from 1 April 2026.

Revaluations are done to reflect changes in the property market, which means that business rates bills are based on more up-to-date information.

Multipliers

The Billing Authority calculates the amount due on each bill by multiplying the rateable value by the relevant multiplier.

From 1 April 2026 there are five multipliers:

Multiplier type	Multiplier rate
Small business (RV less than £51,000)	43.2p
Standard (RV between £51,000 and £499,999)	48p
Small retail, hospitality leisure (RV less than £51,000)	38.2p
Standard retail, hospitality leisure (RV between £51,000 and £499,999	43p
High value (RV £500,000 and above)	50.8p

Transitional rate relief

At a revaluation, the rateable value of a property may increase. Transitional relief schemes are introduced at each revaluation to assist those facing a rise in their bills.

How much your bill can change by from one year to the next depends on both:

• your properties rateable value
• whether your bill is increasing or decreasing as a result of the revaluation

For the 2026 revaluation your business rates will change by no more than the percentage caps listed in the tables from one year to the next.

Rateable value	2026 to 2027	2027 to 2028	2028 to 2029
Up to £20,000	5%	10% plus inflation	25% plus inflation
£20,000 to £100,000	15%	25% plus inflation	40% plus inflation
Over £100,000	30%	25% plus inflation	25% plus inflation

You can find more information about transitional arrangements on the GOV.UK website.

Unoccupied property

A three- month exemption can be applied to a property that becomes empty, or in the case of industrial properties, a term of six months exemption can apply. Once the exemption period has expired, 100% of the business rate becomes payable.

This highlights the importance of revenue collection. Any suspected avoidance or evasion of tax will be scrutinised and challenged where appropriate.

Partially occupied property

Where there are short term difficulties with occupation of an entire premise, the local authority has the power to exercise discretion and award a part occupied relief. The council must be satisfied that the condition causing difficulty with occupation is short term.

The council can treat occupation of part as occupation of the whole and the power to reduce is entirely discretionary and not mandatory. Find out more about part occupied property relief.

Small business rates relief

Small business rate relief is a mandatory relief. This was introduced by the government to ease the burden on small businesses.

Pub and live music venue relief

This new relief will provide a 15% relief for eligible pubs and live music venues, on top of the support announced in the autumn statement.

Eligible businesses will also then have their bills frozen in real terms for a further two years.

You can read government guidance on pubs and live music venues relief for 2026 to 2027 on the GOV.UK website.

Charitable and discretionary relief

Charities who occupy a property for wholly and mainly charitable purposes can avail of charitable relief at 80%. The local authority can exercise discretion to award a further reduction in certain circumstances. Charitable Relief is a mandatory relief. The power to reduce a bill further in respect of wholly charitable purposes is discretionary and dependant on the individual circumstances in a particular case.

With effect from 1 April 2024 mandatory relief for charities will be calculated using the small multiplier for those occupying properties with a rateable value of less than £51,000.

The amount awarded can be variable and is set by the government. It is normally available for businesses that occupy one property only and whose rateable value falls under a certain threshold. The relevant thresholds for relief are set out in regulation and can be found on the GOV.UK business rates overview web page.

Supporting small business

The 2026 supporting small business relief scheme will cap increases at £800 per year, or the relevant caps within transitional relief (whichever is the greatest) over the next three years.

It will help ratepayers due to the revaluation see large increases in their rates bill as a result of losing some or all of their:

• small business rate relief
• 40% retail, hospitality, leisure relief
• 2023 supporting small business relief (these ratepayers will only be entitled to 1 year of the 2026 relief scheme)

Charity and community amateur sports club relief

Charities and registered community amateur sports clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes.

Hardship relief

Hardship relief is a discretionary relief. Applications may be considered where awarding such relief is in the interest of the local community and where a similar service or amenity can’t be found elsewhere within the city. Hardship may be applicable where to lose an amenity or service would cause adversity to the community.

Other reductions

For information on electric vehicle charging point forecourt only properties and film studio please see details on our website.

Discretionary reliefs general

Application of most discretionary reliefs must be considered alongside the interests of the taxpayer within the city. Additionally, funding for most discretionary reliefs is borne by the local authority. The local authority is also required to consider budgetary matters when deciding to award a discretionary relief.

Rating advisers

Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS – website here) and the Institute of Revenues, Rating and Valuation (IRRV) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.

Before you engage a rating adviser or company you should check that they have the necessary knowledge and expertise, in addition to appropriate indemnity insurance.

UK subsidy control

The award of discretionary relief is considered financial support and the rules concerning subsidy control must be taken into account when applying for any discretionary relief.

You can find more information about subsidy control regime on the GOV.UK website.

Heat network relief

You can get heat networks relief if your property is only used or mainly used as a ‘heat network’.

A heat network supplies heating or cooling to other properties from a central source. To be eligible, the heat network must:

• take its energy from a low carbon source
• supply heating and cooling to other properties – for example, homes, shops, public buildings, hospitals and offices

The heat network must not supply heat or cooling for industrial use – for example, to create products in factories. Contact the Valuation Office Agency (VOA) to check if your property is eligible for heat networks relief.

Improvement relief

A new relief has been introduced by the government from 1 April 2024. Find out more about improvement relief on the GOV.UK website.

Business rates online

Our online service is simple to use. You can register to manage your business rates account online.

Payment and payment methods

All ratepayers will pay their annual bill in ten monthly instalments on the first of each month from April to January, unless they opt to pay:

• in twelve monthly instalments, on the first of each month from April to March
• in full by 1 April
• half the year’s charge by 1 April and the balance by 1 October

Pay by Direct Debit

Setting up a Direct Debit is simple and easy and is the most efficient way for us to collect your payments.

Setting up a Direct Debit allows you to:

• choose from 2 monthly payment dates
• pay us automatically, avoiding reminders

Set up a Direct Debit

If you pay by any of the following methods, you must allow five days for your payment to reach us.

Pay in full online

You can pay your business rates bill securely online by debit or credit card.

Pay online

Pay by standing order/bank transfer

If you wish to set up a standing order or pay by bank transfer, our bank details are:

Account Name: RBC Main Account
Bank Account: Lloyds Bank
Sort Code: 30-91-31
Account Number: 00271502
Reference: this will be your business rates account reference

Remittances should be sent to bank.rec@reading.gov.uk

Pay by text

Download the Allpay App to pay your bill using your smartphone.

Register to pay by text

Pay by phone

You can call our 24 hour payment line on 0300 456 0543.

Calls are charged at 3p per minute, plus your phone provider’s charges.

All cards except American Express and Diners Club International are accepted.

Pay in person

Use the barcode on the front of your bill to pay at any Post Office or Paypoint.

Payment deadlines

Payments are due on the 1st of the month, unless otherwise stated.

Payments should be received on or before the date they are due. Allow 3 to 5 working days for the payment to leave your bank.

Service

Our commitment is to:

• send out accurate and timely rate bills
• collect rates promptly and efficiently
• deal with your enquiries quickly and correctly first time
• give clear and up-to-date information and advice
• help you to understand your rights and obligations
• continually improve our performance
• give value-for-money to our customers
• offer a formal procedure for complaints

Performance standards

Our aim is to deal with all written correspondence within fourteen working days of receipt.

Please note that, at certain times, particularly immediately after we have issued our annual bills in March, we may take a little longer than ten working days to deal with your enquiry.

Comments, compliments or complaints – your views

We are committed to providing our customers with an excellent level of service and support the city council’s ‘Your Views’ policy. If you would like to raise anything about the service you have received, you can make a complaint, comment or compliment online.

Enquiries and other information

If you have any enquiries, please contact the business rates team.

Fair processing statement

We, Reading Borough Council, process your personal data in order to comply with our legal obligation to assess and collect Council Tax or business rates bills. All personal data will be processed in accordance with the Data Protection Act 2018 and the Data Protection Regulation (GDPR). The legal basis that allows us to use your information is ‘public task’.

Any personal data in your request is processed internally and shared between the relevant internal departments in order to provide you with a tailored response. Occasionally, the request will be shared with our commercial partners where the information requested is governed by a contract, or with other public authorities in the case of “round robin” requests. 

Text relay service

If you have hearing or speech difficulties or you need assistance in getting in touch with council services, you can use the free text relay service to make a text relay call.

You need to dial 18001 followed by the telephone number of the person/council service you are calling.

To use text relay on a smartphone or computer you need to download the free relay uk app  from a marketplace such as Google Play or the App Store.