Business rates: the basics

Rates for licensed premises

Guide

When calculating business rates for licensed premises Land & Property Services (LPS) assess the Net Annual Value (NAV) by calculating the correct level of Fair Maintainable Trade (FMT). LPS do this by collecting information about rent, trading receipts and trading patterns. LPS analyse this information along with the type of premises, the area it is in and what services it offers.

As there is little evidence of rents for pubs LPS use FMT in the assessment to help assess a rateable value or NAV. This is industry standard and is the approach adopted across the UK.

LPS apply a percentage to the estimated FMT to assess the annual rent. It is based on factors such as, where the premises is located, the sort of premises they are (bar, hotel, etc.) and the sort of trade carried on. LPS regularly consult with the trade associations to ensure its approach continues to reflect how the licensed industry operates.

Please note: LPS Customer Information Centres will be closed until further notice. All Ordnance Survey services are available online or you can email queries to Mapping.Helpdesk@finance-ni.gov.uk. Helplines for rating and valuation, housing benefit, rates relief and land registration are open.

Further information on service updates, helpline numbers and reaching LPS by email are available on the LPS website.

Reval 2023

The short video below explains the revaluing process, known as Reval 2023, and how LPS calculate business rates for licensed premises.