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Business
Business Rates
A tax on commercial properties based on their rental value, paid by the business occupying the premises.
Business rates are set by the Valuation Office Agency and collected by local councils. They are a major cost for physical businesses. Online-only businesses usually avoid them, which gives them a cost advantage.
It's council tax for business premises — you pay it simply because you occupy a shop, office, or warehouse.
Real world: A café in a high-street location pays several thousand pounds per year in business rates. Reliefs and small business rate relief can reduce or eliminate the bill for smaller premises.
💡 Business rates are one of the biggest fixed costs for shops and restaurants.