We use the fair maintainable trade valuation method to assess the rateable value of pubs and other licensed premises. It is the valuation method commonly used for pub rents.

Fair maintainable trade is the annual level of trade (excluding VAT) that a pub can be expected to achieve assuming a reasonably efficient operator. It is based on:

• The type of pub or licensed premises
• The area it is in
• What services it is able to offer – such as food, gaming, sports screenings.

We refer to actual rents and turnovers we collect from businesses to arrive at levels of fair maintainable trade.

We then apply a percentage to the fair maintainable trade figure to calculate the rateable value .

The percentage ranges we apply are established by analysing pub rents. They have been agreed with the British Beer and Pub Association, and are published in the 2010 Pub Guide (PDF).

Watch a two minute video on how we value pubs