Business rates: the basics
Rates for licensed premises
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 does 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 uses FMT in the assessment to help assess a rateable value or NAV. This is the industry standard and is the approach adopted across the UK.
LPS applies a percentage to the estimated FMT to assess the annual rent. It is based on factors such as, where the premises are located, the sort of premises they are (bar, hotel, etc.), and the sort of trade carried on. LPS regularly consults with trade associations to ensure its approach continues to reflect how the licensed industry operates.
Reval 2026
The short video below explains the latest revaluation process, known as Reval 2026, which will create a new valuation list that will be used to calculate business rate bills from April 2026.
