---
title: "Business rates — Class A Atlas glossary"
description: "UK statutory tax on commercial property occupation."
canonical: https://classa.info/glossary/business-rates
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> UK statutory tax on commercial property occupation.

## TL;DR

- UK statutory tax on commercial property occupation.
- Business rates are levied at approximately 50% of the property's rateable value per year.

# Business rates

*Tax / regulatory · UK*

## Short definition

UK statutory tax on commercial property occupation.

## Full definition

Business rates are levied at approximately 50% of the property's [rateable value](/glossary/rateable-value) per year. Payable directly by the tenant to the local authority. Distinct from rent and [service charge](/glossary/service-charge).

## Why this matters for Class A leasing

Business rates is part of the tax / regulatory vocabulary that institutional [Class A](/glossary/class-a) occupiers, landlords, and advisers use across UK markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the UK definition alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Rateable value](/glossary/rateable-value)
- [Service charge](/glossary/service-charge)

## Related guides

- [Decoding a London lease: FRI, dilapidations, break clauses](/guides/uk-lease-glossary-fri-explained)

---

Citation: Source: Class A Atlas (https://classa.info/glossary/business-rates), updated 2026-04-01T00:00:00.000Z.