How pubs are valued for business rates
Find out how the Valuation Office Agency (VOA) calculates rateable values for public houses, inns and bars.
Applies to England and Wales
How pubs are valued
Watch a video on how the Valuation Office Agency (VOA) assesses pubs for business rates.
How we assess pubs for business rates
The VOA usually works out the rateable value of pubs using fair maintainable trade (FMT). This is the annual level of trade (excluding VAT) your pub might be expected to achieve if operated in a reasonably efficient way. It’s based on factors such as:
- your trading information and patterns
- your pub’s design and location
- the services your pub offers, for example food, gaming, or sports screenings
- any income you make from accommodation
We then apply a percentage to work out the rateable value, based on:
- the operating style
- the operating costs
- profitability
The VOA engaged with industry bodies in the sector to develop our approach to valuing pubs.
If you’re a licensed property valuer, you can find more detailed information in the VOA’s valuation of public houses approved guide.
2026 rateable values
A rateable value is an estimate of what it would cost to rent a property for a year, on a set date known as the Antecedent Valuation Date (AVD).
The last revaluation came into effect in England and Wales on 1 April 2024. It was based on the AVD 1 April 2021.
During the previous revaluation, pubs were affected by the COVID-19 pandemic. This meant most pubs were given much lower rateable values in the 2023 revaluation than they otherwise would have received.
Your rateable value is not the amount you have to pay. Local councils use rateable values to calculate business rates bills.
Updates to this page
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A link has been added to the 'Valuation of public houses' guidance for licensed property valuers to use.
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Added translation