Local property tax
In England and Wales, the term ‘local property tax’ (LPT) refers to either the council tax or business rates. Very broadly, domestic properties pay the council tax, whilst business properties pay business rates (sometimes referred to as non-domestic rates).
Where properties are partly for business use and partly for domestic use, such as a pub or shop, where the owner lives on the premises or in a flat above the business, it may be necessary to pay both taxes.
If an owner is using their home for minor business purposes, they are not normally expected to pay business rates, for example, if:
- They only use a small part of the home for business.
- They don’t use it to sell goods or services to visiting clients or members of the public.
- They don’t employ other people to work at the premises.
- They don’t make alterations that are not for domestic purposes.
[edit] Related articles on Designing Buildings Wiki
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
New measures to stop people being ripped off
Government to protect families from cowboy builders and aggressive bailiffs.
New Futurebuild showcase brings an innovation-first approach.
National Planning Policy Framework
Understanding the 2026 changes.
ECA's public affairs priorities
Member consultation opens to shape priorities for 2027 to 2030.
Dutyholder responsibilities from 1 July 2026.
Where performance meets practice
The Building Envelope Stage at UKCW Birmingham.
CIAT publishes briefing on planning reforms.
Leaders in Learning for Practice Network
Call for conservation leaders in learning to register interest in new network.
The importance of early engagement
Construction lessons from the Trillium HealthWorks Experience Centre.
Mayors are to be given planning call in powers
Mayors across England will be able to make the most important planning decisions.
The Master Builder: William Butterfield and his times. Book review.
Why construction can't afford to ignore the skills gap.