BUSINESS RATE Meaning and
Definition
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Business rate refers to a tax levied on non-residential properties used for commercial purposes by local government authorities in the United Kingdom. Also known as non-domestic rates or business rates, this taxation system serves as a major source of income for local authorities, contributing to the provision of essential public services.
Business rates are assessed on various types of non-domestic properties, including offices, shops, factories, warehouses, pubs, and other premises that operate for commercial purposes. The amount an occupier or owner of a business property is required to pay is determined by the rateable value of the property, which represents an estimation of its open market rental value. The rateable value is periodically reassessed by the Valuation Office Agency (VOA).
The business rate is calculated by multiplying the rateable value of the property by the business rate multiplier, which is set annually by the government. However, certain property types, such as agricultural land and buildings, are exempt from business rates. Additionally, businesses that occupy a property with a low rateable value may qualify for small business rate relief, reducing their tax liability. It is important for enterprise owners to regularly inform local authorities about any changes to their businesses or properties that may impact their rateable value.
The revenue generated from business rates contributes to funding local services such as waste management, infrastructure development, public transportation, and education. The funds collected are disbursed by local authorities to support the needs of their respective communities.
Common Misspellings for BUSINESS RATE
- vusiness rate
- nusiness rate
- husiness rate
- gusiness rate
- bysiness rate
- bhsiness rate
- bjsiness rate
- bisiness rate
- b8siness rate
- b7siness rate
- buainess rate
- buziness rate
- buxiness rate
- budiness rate
- bueiness rate
- buwiness rate
- busuness rate
- busjness rate
- buskness rate
- busoness rate
Etymology of BUSINESS RATE
The word "business rate" has its roots in Middle English and Old French. The term "business" originated from the Old English word "bisignes" which meant concern, interest, or anxiety. It derived from the Old English verb "bisgan" meaning to busy or occupy. Over time, the term evolved to refer to commercial or professional activity.
The word "rate" comes from the Old French word "rata" or "rate" meaning price, value, or regular payment. It can be traced back to the Latin word "ratus" meaning reckoned or assessed.
Therefore, when combined, the term "business rate" refers to the assessment or evaluation of the value or worth of a commercial activity or concern.
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