Business rates are a tax on commercial property. If you rent office space on a traditional lease, you pay them on top of your rent. In a serviced office, they are included.
How They Are Calculated
Business rates = rateable value × multiplier. The rateable value is set by the Valuation Office Agency based on the rental value of the property. The multiplier for 2025-26 is 49.9p in the pound (standard) or 49.1p (small business).
Small Business Rate Relief
If your property has a rateable value under £15,000, you may qualify for relief. Under £12,000: 100% relief (you pay nothing). £12,000-£15,000: tapered relief.
How Serviced Offices Avoid This
In a serviced office, the provider pays business rates as part of the all-inclusive fee. You never see the bill, never apply for relief, and never worry about revaluations. See business rates and serviced offices explained.