Premises Licence Cost UK – Full Guide to Alcohol Licence Fees
Premises Licence Cost UK – Complete Guide to Alcohol Licence Fees
Updated September 2025
Understanding the premises licence cost is essential for anyone planning to open a
bar, restaurant, shop, or event venue in England or Wales.
This guide explains how fees are calculated, what extra costs to expect,
and how to avoid common mistakes when applying for an
alcohol licence.
Why You Need a Premises Licence
A premises licence allows your venue to:
- Sell alcohol to the public.
- Provide late-night refreshments (between 11pm – 5am).
- Offer regulated entertainment such as live music or dancing.
Without the correct licence, you could face fines, enforcement action, or closure.
Learn more about the process in our
Premises Licence Application Guide.
What Affects the Cost of a Premises Licence?
Several factors determine how much your alcohol licence will cost:
- Rateable Value (NDRV): The property valuation used for business rates determines your fee band.
Check your rateable value here. - Type of Business: If your venue primarily sells alcohol for on-site drinking (e.g., pubs or nightclubs), a
multiplier fee applies to higher bands. - Venue Size: Venues with a capacity of 5,000+ people pay additional charges for regulatory oversight.
- Annual Fees: Once granted, you must pay yearly to keep your licence active.
UK Premises Licence Fee Bands (2025)
| Band | Rateable Value | Application Fee | Annual Fee |
|---|---|---|---|
| A | £0 – £4,300 | £100 | £70 |
| B | £4,301 – £33,000 | £190 | £180 |
| C | £33,001 – £87,000 | £315 | £295 |
| D | £87,001 – £125,000 | £450 | £320 |
| E | £125,001+ | £635 | £350 |
Multiplier Fees for Pubs, Bars & Nightclubs
If your venue’s primary business is selling alcohol for on-site consumption,
Bands D and E have higher fees:
| Band | Application Fee | Annual Fee |
|---|---|---|
| D | £900 | £640 |
| E | £1,905 | £1,050 |
Additional Costs to Consider
- Personal licence fee: typically £37.
- Variation fees if you change your licence conditions or hours.
- Advertising costs for public notices.
- Professional drawings of your premises layout.
- Optional legal or consultancy fees.
Example Cost Scenarios
Here are typical costs for different venues:
- Small café or shop: £3,000 rateable value → £100 application + £70 annual fee.
- City centre bar: £100,000 rateable value → £1,905 application + £1,050 annual fee (with multiplier).
- Family restaurant: £80,000 rateable value → £450 application + £320 annual fee.
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FAQs
Do I need both a premises licence and a personal licence?
Yes. A premises licence covers the venue, while a personal licence covers the individual supervising alcohol sales.
When is the annual fee due?
The annual fee is due on the anniversary of your licence being granted.
Can I dispute my rateable value?
Yes, through the Valuation Office Agency.