An allowanceA percentage the VOA takes off your Rateable Value for a drawback similar properties don't have, such as shared access or an awkward layout. Typically 5%. is a reduction the Valuation OfficeThe government body that sets every property's Rateable Value. From April 2026 the VOA is part of HMRC (see below), but 'VOA' is still the common name for the valuation side of the work. (VO) makes to your rateable valueThe official estimate of a property's annual rental value on a fixed valuation date. Your rates bill is based on this figure, not on what you actually pay in rent. for a drawback your property has and similar ones don't, such as shared access, a split layout or low headroom. The typical allowance is 5%, most are between 5% and 10%, and the VO only knows to give one if it knows about the drawback. You ask for one yourself, free, through your business rates valuation account: give the facts in a CheckThe three-stage official process for disputing your Rateable Value: 'Check' the facts held about your property, 'Challenge' the valuation with evidence, then 'Appeal' to an independent tribunal if it's still unresolved., and if that doesn't work, argue it in a Challenge using similar propertiesA similar nearby property used as evidence for what your Rateable Value should be. Good comparables share your property's type, size band and location. that already have one.
What an allowance is
The VO values most business property by applying a standard rate per square metre to each part of it. That rate is set from similar properties nearby. Where your property is less useful than those for a reason of its own, the VO can take a percentage off. That percentage is an allowance. It appears on your valuation on the VO's website, under the rooms and areas, with a short reason such as "Access" or "Layout".
| Allowance | |
|---|---|
| What it changes | Your rateable value |
| Who decides | The Valuation Office |
| How you ask | A Check, then a Challenge, through your VO account |
| Example | 5% off for shared, narrow access |
This page is about allowances. For reliefs, see Business rate reliefs, and why you might not have one.
How much an allowance takes off
| Figure on the 2026 list | |
|---|---|
| Properties with at least one allowance | 73,502 of 1,646,478 (about 1 in 22) |
| Typical single allowance | 5% |
| Most allowances fall between | 5% and 10% |
| Top tenth of properties with allowances, all added together | 12.5% or more |
| Disruption from nearby building works | Usually 10%, and much more while works are severe, but only for as long as they last |
What that is worth depends on your rateable value. On a rateable value of £20,000 at the 2026/27 small business multiplierThe pence-in-the-pound rate the government sets each year. Your rates bill is roughly Rateable Value × multiplier, before any reliefs are applied. of 43.2p, a 5% allowance takes £1,000 off the rateable value and about £430 a year off the bill. A 10% allowance is worth about £860 a year. A reduction is usually backdated to when the drawback began, and your council refunds what you overpaid.
The most common allowances
These are the reasons the VO gives most often on the 2026 list. The typical size is the median; the usual range covers the middle half of cases.
| Allowance | What it is for | Properties with it | Typical | Usual range |
|---|---|---|---|---|
| Access | Shared, narrow or indirect access; no direct road access; restricted delivery hours | 27,641 | 5% | 5% to 10% |
| Layout | Columns, partitions or room arrangements that stop you using all the space | 12,899 | 5% | 5% to 7.5% |
| Toilet facilities | No toilets of your own, or only shared or external ones | 6,632 | 5% | 2.5% to 5% |
| Divided or split unit | Space in separate parts that can't be used as one | 5,460 | 5% | 5% |
| Size (quantum) | Much larger than the typical unit the rate was based on | 5,460 | 5% | 5% to 10% |
| Shape | An awkward shape that wastes space | 3,898 | 5% | 5% to 7.5% |
| Services | Power, heating, water or drainage below the usual standard | 3,329 | 5% | 5% to 10% |
| Width to depth | A very deep, narrow shop or unit | 2,330 | 5% | 5% to 10% |
| Permanent disadvantage | A lasting drawback of the location, such as a blocked view or poor approach | 2,067 | 5% | 5% to 10% |
| Variations in floor level | Steps or changes of level inside the property | 1,979 | 5% | 5% |
| Non-standard frontage | A shop front that is narrower or less visible than its neighbours | 1,914 | 5% | 5% to 10% |
| Planning restriction | A planning condition that limits how the property can be used | 1,411 | 10% | 5% to 20% |
| Poor construction | Construction or condition well below similar properties | 913 | 10% | 5% to 15% |
| Temporary disadvantage | Disruption from building works or road closures nearby, while it lasts | 501 | 10% | 5% to 50% |
How to get an allowance
See whether similar properties have one
If several similar properties near you have an allowance and yours doesn't, that is a strong starting point. Our free report shows how many of your comparable properties have one, and of which type.
Gather the facts
Photos of the access, layout or problem; a floor plan; dates if it is caused by works nearby; anything that shows how it affects the way you use the property.
Start a Check in your VO account
A Check corrects the facts the VO holds about your property. Describe the drawback as a fact (for example "access is through a shared yard, 2.4 m wide") and attach your evidence. It's free and can take several months.
If the Check doesn't fix it, start a Challenge
You have 4 months from the Check decision. A Challenge is where you argue the valuation itself, so name the similar properties that already have the allowance. All your evidence goes in at once.
Last resort: the Valuation Tribunal
If you disagree with the Challenge decision, you can appeal to the independent Valuation Tribunal. Most people who get this far use a rating surveyor.
Who can apply
| Who | How | Cost |
|---|---|---|
| You, as the ratepayer or owner | From your own business rates valuation account on GOV.UK | Free |
| An agent or rating surveyor you appoint | You appoint them from your account; they act for you | Their fee, often a share of the saving |
| Your council | Can't. Councils send the bill but don't set the rateable value | – |
Agents don't need a licence to act on business rates, so check membership of the RICS or the IRRV before you sign anything. Find a chartered rating surveyor.
What tribunals have decided
Allowances are argued regularly at the Valuation Tribunal. These are published decisions since 2020 where an allowance-type argument was made, and the cases where it was the deciding reason the appeal succeeded.
| Argument | Appeals that made it | Won on that argument | Typical cut when won |
|---|---|---|---|
| Size (quantum) | 360 | 42 | 8.6% |
| Building works and disruption nearby | 224 | 29 | 6.1% |
| Layout and zoning | 131 | 20 | 5.0% |
Two recent examples: a 5% layout allowance for a merged warehouse (7 Oct 2026), and a size allowance for a large factory (28 Sept 2026). See every decision in our tribunal decisions register, and how recent Checks and Challenges have gone.
Check whether yours is missing one
Search for your property and our free report shows whether similar properties in your VO valuation scheme have an allowance you don't, and roughly what it would be worth. Check your property.
Read next
Sources
General information, not financial or legal advice. Independent service — not endorsed by the VOA or HMRC. Official rateable values and formal decisions come only from the VOA/HMRC. England and Wales.