From 1 April 2026, the latest Business Rates Revaluation has taken effect, introducing updated rateable values for commercial properties across England and Wales.
In England, this is coupled with a revised multiplier system, changing how business rates are calculated for many properties.
As a result, businesses are likely to see changes to their rates bill, although the impact will vary depending on the property and its location.
What’s changed from April 2026?
All commercial properties have been reassessed by the Valuation Office Agency (VOA), using market rental evidence as at 1 April 2024. These updated rateable values apply from 1 April 2026.
A rateable value reflects the estimated annual rent a property could achieve on the open market and is not necessarily the same as the rent currently being paid.
In England, the revaluation is also accompanied by a move from a two-band to a five-band multiplier system.
Business rates are now calculated based on:
- The property’s rateable value
- The multiplier that applies to that property
Alongside these changes, a number of reliefs and transitional measures have also been introduced to help smooth the impact of the revaluation.
The new multiplier structure
From April 2026, five multipliers apply in England. The multiplier used for a property is determined by:
- Its Rateable Value (RV): the estimated annual rental value, as assessed by the VOA.
- Whether the property is wholly or mainly used in the Retail, Hospitality & Leisure (RHL) sector.
The table below sets out the multipliers for the 2026/27 tax year:
| Multiplier type | Rate (pence) | Applies to |
| Small Business | 43.2p | Non-RHL properties with RV below £51,000. |
| Standard | 48.0p | Non-RHL properties with RV between £51,000 and £499,999. |
| Small Retail, Hospitality & Leisure (RHL) | 38.2p | RHL properties with RV below £51,000. |
| Standard RHL | 43.0p | RHL properties with RV between £51,000 and £499,999. |
| Higher (rateable values of £500k+) | 50.8p | All properties (any use) with RV of £500,000 and above. |
The RHL multipliers apply to qualifying occupied properties with a rateable value below £500,000, while a higher multiplier applies to those at or above that threshold.
This approach is designed to provide ongoing support to smaller retail, hospitality and leisure businesses, while applying a higher rate to larger or higher-value properties.
Whether a property qualifies for the RHL multipliers depends on how it is classified. Local authorities determine this based on legislation and guidance, and the property must be wholly or mainly used for a qualifying RHL purpose.
How different businesses may be affected
The impact of the revaluation and new multipliers will vary depending on the individual property and its characteristics.
In general, businesses that may benefit include:
- Smaller retail,
hospitality and leisure businesses
- Independent high-street occupiers
- Businesses operating
from lower-value premises
Businesses that may see higher costs include:
- Larger offices
- Warehousing and distribution sites
- Properties with rateable values of £500,000 and above
Each case will depend on the property and how it has been assessed.
Reliefs and support measures
A number of reliefs and transitional measures have been introduced to help manage the impact of the 2026 revaluation, particularly for businesses facing significant increases in their rates bills.
Transitional Relief (2026–2029)
Transitional Relief is designed to phase in changes to business rates bills following a revaluation, rather than applying the full increase or decrease immediately.
For businesses facing higher bills, increases are capped each year, limiting how much their liability can rise in the short term. These caps differ depending on factors such as the property’s rateable value.
For those due a reduction, decreases may also be phased in over time, meaning the full benefit is not always realised immediately.
The limits on increases in business rates are set out below. These caps mean that a business’s total rates bill (not just the increase in rateable value) cannot rise above the capped percentage for that year:
| Type of property | 2026 to 2027 cap | 2027 to 2028 cap | 2028 to 2029 cap |
| Small property with a RV of £20,000 or less (or £28,000 or less in London) | 5% | 10% plus inflation | 25% plus inflation |
| Medium property with a RV between £20,000 and £100,000 (or between £28,001 and £100,000 in London) | 15% | 25% plus inflation | 40% plus inflation |
| Large property with a RV of over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
These reliefs are partly funded through changes to the multiplier system.
A 1p supplement applies to ratepayers who do not receive transitional relief or Supporting Small Business Relief.
This supplement is used to help fund the transitional relief scheme.
Supporting Small Business Relief
Supporting Small Business Relief is available to businesses where both of the following apply:
- There is an increase in their rates bill following the 2026 revaluation
- They have lost some or all of their entitlement to Small Business Rate Relief (SBRR), Retail,
Hospitality and Leisure (RHL) relief, or the 2023 Supporting Small Business scheme.
Where eligible, increases in a property’s rates bill are limited. From 1 April 2026, bills will rise by no more than £800 per year or the relevant transitional relief cap – whichever is higher.
Other reliefs and support measures for businesses
Additional reliefs and support measures include:
Small Business Rates Relief – grace period extension
Businesses will retain Small Business Rates Relief on their first property for up to three years after acquiring a second property, extended from the previous one-year period.
Vehicle Charging Points and Electric Vehicle Forecourts (EVCP) relief
A 10-year, 100% business rates relief applies to eligible electric vehicle charging points (separately assessed by the VOA) and electric vehicle-only forecourts, ensuring no business rates liability for qualifying properties.
Pubs and live music venues business rates relief
In January 2026, the government announced a new business rates relief scheme to support eligible pubs and live music venues in England for the 2026/27 financial year.
The scheme provides a 15% reduction in business rates for eligible properties. This is applied in addition to other reliefs, with bills then frozen for the following two years.
Further details on eligibility can be found at Business rates relief: Pubs and live music venues relief – GOV.UK
Reviewing your business rates position
Now that the new rating list is in place, it can be helpful to review how your properties have been assessed. This can help ensure that the valuation, classification and any reliefs applied are correct.
Areas to consider include:
- The updated rateable value and how it compares with similar properties
- Checking the property details held by the VOA
- Which multiplier has been applied
- Whether the classification (for example, RHL) is appropriate
- Whether any reliefs or transitional arrangements apply
It may also be worth checking that the underlying property details held by the VOA are accurate. This includes floor areas, layout, mezzanine floors or extensions, and other features such as car parks, yards or shared space.
Even small differences can have a material impact on the rateable value and overall liability. A proactive review can help ensure businesses are not overpaying and are making full use of the reliefs available.
Duty to notify
From 1 April 2026, a new Duty to Notify requirement applies to ratepayers. This places an obligation on businesses to inform the Valuation Office Agency (VOA) of certain changes that may affect their rateable value.
This includes changes to the property, its use or occupation, and other relevant factors. Notifications must generally be made within 60 days of becoming aware of the change.
This represents a move towards a more self-reporting system, and businesses should ensure appropriate processes are in place to identify and report any relevant changes in a timely manner.
To review your property valuation, confirm the correct multiplier, and identify any reliefs you may be missing please contact Ralph Mitchinson.
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