Here’s What Your Business Needs To Know About Rates In 2026

The Valuation Office Agency said all commercial and other non-domestic properties in England and Wales will have new rateable values from 1 April next year. These figures are updated every 3 years to reflect changes in the property market . The agency said this affects how councils work out future business rates bills.

A rateable value is not the same as the bill that lands on the doormat or the rent a business pays. Councils multiply the value by the government’s multiplier and then decide if any relief applies. That means a change in rateable value does not automatically mean a bill will rise at the same pace.

Businesses can already check future valuations online through the government’s find a business rates valuation service. The agency said this gives an indication of future bills, though it might not reflect any relief that applies. Wales will update its version of the tool once its government confirms multipliers and reliefs.

The government said it will help businesses that see bills come up. A support package worth £4.3 billion will run for three years. It includes £3.2 billion of Transitional Relief for the largest ratepayers such as airports and hospitality sites, and over £500 million to help smaller businesses.

How Will Business Rates Be Worked Out?

The government said councils will keep using the same method. The rateable value is multiplied by the correct multiplier for the tax year and then reliefs are taken away. Multipliers differ for England and Wales and also differ for retail hospitality and leisure properties.

For 2026 to 2027 in England, a non-retail property with a rateable value below £51,000 uses a multiplier of 43.2 pence. The figure becomes 48 pence if the value is £51,000 or more but below £500,000. Retail hospitality and leisure properties use lower multipliers of 38.2 pence below £51,000 and 43 pence up to £499,999. Any property at £500,000 or above uses 50.8 pence.

One example given is a dental surgery in England with a value of £60,000. It is not eligible for retail hospitality and leisure treatment, so it uses the 48 pence multiplier and would pay £28,800 as its basic bill. Another example shows a gift shop valued at £30,000. Using the retail hospitality and leisure multiplier of 38.2 pence gives an estimated bill of £11,460.

The Valuation Office Agency said businesses should check the factual details held about their property, such as layout, size or use. This can be done through the business rates valuation account. If anything is wrong, they can tell the agency.

Businesses can compare their valuation with similar buildings nearby. If they want to request a change, this must apply to the current valuation before 31 March 2026. From 1 April 2026, any change request will apply to the future valuation only.

Those in England can use the government’s estimation tool to get an idea of their 2026 bill. The service is meant as a guide and may not include relief. Firms in Wales must wait for new multipliers from the Welsh Government.

Multipliers for earlier tax years are also available so businesses can compare against past costs. For example the standard multiplier for 2025 to 2026 was 55.5 pence and the small business multiplier was 49.9 pence.

The government said it will also bring in new permanently lower tax rates for eligible retail hospitality and leisure properties from April 2026. This change will be funded through a higher tax rate on properties with rateable values of £500,000 and above.

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Based on reporting by techround.co.uk.