Business Rates Warning
From 1 April 2026, the business rates system for commercial properties in England is changing. There will be a full revaluation of properties, new multipliers, and a new relief/transition scheme.
The rateable values will be revised based on market rental values as of 1 April 2024, and the new RVs will take effect on 1 April 2026.
This means many properties may have higher or lower rateable values depending on how the market changed between the last valuation and 2024.
Currently business rates are calculated using just two multipliers (small vs standard). From April 2026, that expands to five multipliers, based on the use of the property and if is retail, hospitality or leisure (RHL) use. The below table shows the multiplier applicable to each property type and Rateable Value.
| Property Type | Rateable Value | Multiplier |
| Small Business (RHL) | less than £51,000 | 38.2p |
| RHL | £51,000 to £499,999 | 43.0p |
| Small Business (non RHL) | less than £51,000 | 43.2p |
| Non RHL | £51,000 to £499,999 | 48.0p |
| High Value Properties (any use) | £500,000 + | 50.8p |
Reliefs and transitional support
The Government has introduced Transitional Relief in an attempt to ease the impact of the revaluation, which could increase a number of occupiers rates payable and bring many into paying rates whereas before they were eligible for reliefs including Small Business Rates Relief.
The Transitional Relief rates are as follows:
- Up to £20,000 RV: in 2026-27 – 5%, in 2027-28 – 10% (plus inflation), in 2028-29 – 25% (plus inflation).
- £20,001 to £100,000 RV: in 2026-27 – 15%, in 2027-28 – 25% (plus inflation), in 2028-29 – 40% (plus inflation).
- Over £100,000 RV: in 2026-27 – 30%, in 2027-28 – 25% (plus inflation), in 2028-29 – 25% (plus inflation).
