Meaning & use

business rates

noun·AdvancedBritishbusiness

Last updated

UK/ˈbɪznəs ˈreɪts/
US/ˈbɪznəs ˈreɪts/

Meaning

  1. nounpluralBritishbusiness

    A tax paid to local government by the owners or occupiers of shops, offices and other non-residential buildings in Britain.

    Grammar: Always plural, and takes a plural verb: business rates are rising.

    Patterns

    • pay business rates on something
    • business rates for something

    The cafe owner complained that business rates were too high.

    The council sent a bill for business rates on the empty shop.

    Small firms can get relief from business rates.

Common combinations

pay business rates
All shops must pay business rates.
business rates bill
Her business rates bill doubled this year.
business rates relief
The charity qualified for business rates relief.
cut business rates
The government promised to cut business rates.
increase in business rates
An increase in business rates hit local pubs.

Synonyms and how they differ

commercial property tax
Commercial property tax is the closer American term, while business rates is specifically British.
council tax
Council tax is paid on homes by residents, whereas business rates are paid on commercial buildings.
local taxes
Local taxes is a very general phrase and does not point to commercial property.
rates
Rates alone is the older British word for this tax and for the former tax on homes.

Word family

rate noun
a charge or amount measured against something
ratepayer noun
a person who pays local property taxes
business noun
a commercial organization

Commonly confused: business rates or council tax?

business rates vs council tax

Council tax is the British local tax on homes, while business rates is the one on commercial premises.

Practice

The owner of the shop must pay ___ to the local council every year.

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