Updated October 2026 · Fraser Bond
Business rates · Change of use
Changing use? Check your rates
VOAmust be told
Council taxif residential
Splitor merge
Planningfirst
In short: If a property's use changes, for example a shop becoming offices, offices becoming flats, or one unit split into two, its rateable value may change. Residential conversions usually move from business rates to council tax once homes are ready to occupy. Ratepayers have a duty to tell the Valuation Office Agency about changes that affect their valuation. Always check planning first: many changes of use need permission. Fraser Bond helps owners value and let converted property.
| Change | Likely effect |
|---|---|
| Shop to office (both Class E) | Usually no planning permission needed; rateable value may change |
| Office to flats | Moves to council tax once homes are complete |
| One unit split into two | New separate assessments |
| Two units merged | A single new assessment |
| Partly residential | Split between rates and council tax |
How changes of use affect rating
What to do
1
Check planningConfirm whether permission or prior approval is needed.
2
Plan the worksConsider rates during the works period.
3
Tell the VOAReport the change so the list can be updated.
4
Check the new billReview the new valuation and challenge if wrong.
Converting a commercial property?
- Valuations for the end use
- Letting finished units
- Sales of converted property
- Investment advice
Frequently asked questions
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Do I have to tell the VOA about a change of use?
Yes, ratepayers must report relevant changes.
Do flats pay business rates?
No, homes pay council tax.
Does a change of use need planning permission?
Often. Check with the council.
Converting or repositioning a property?
Get advice on the end value and letting.
Speak to our teamGet a free valuation
