2026 Business Rates Revaluation
The 2026 Business Rates Revaluation marks a pivotal moment for commercial property occupiers across the UK. With sweeping changes to rateable values, the introduction of tiered multipliers, and evolving relief schemes, ratepayers must prepare strategically to manage their liabilities and optimise opportunities for savings.
What Is a Business Rates Revaluation?
Business rates revaluations are periodic reviews that ensure rateable values reflect current market conditions. Business rates are a tax on commercial properties, calculated based on a property’s rateable value (RV) – an estimate of its open market rental value on a specific date, known as the Antecedent Valuation Date (AVD). Revaluations are conducted periodically to ensure that rateable values reflect current market conditions.
The 2026 revaluation will reset rateable values across the UK, aligning them with rental values as of:
- 1 April 2024 in England, Wales, and Northern Ireland
- 1 April 2025 in Scotland
This revaluation will apply from 1 April 2026 and remain in effect for three years, until 2029. The current 2023 Rating List is based on rental values as at 1st April 2021.
How are business rates calculated?
Business rates are calculated by multiplying a property’s rateable value by the national multiplier set by the government.
Why the 2026 Revaluation Matters
The revaluation is not just a technical adjustment—it has real financial implications. Properties that have seen rental growth may face higher liabilities, while those in declining markets could benefit from reduced bills. The 2026 revaluation also introduces structural changes to how rates are calculated and reliefs are applied, particularly in England.
Key reasons this revaluation is significant:
- Updated rental evidence reflects post-pandemic market shifts between April 2021 and April 2024.
- Tiered multipliers will redistribute the tax burden.
Transitional relief will cushion sharp increases. - Improvement Relief continues to support investment.
What is changing in 2026?
Tiered Multipliers
For the first time, England will introduce differentiated multipliers based on property type and value:
- Lower multipliers for all Retail, Hospitality and Leisure (RHL) regardless of size of Rateable Value.
- Higher multipliers for all properties with Rateable Values of £500,000 and above, excluding RHL properties.
- Standard Multiplier for all other properties that don’t fall into the above two categories.
The intention behind the tiered multiplier system is an attempt to support smaller businesses and high street retailers while shifting more of the tax burden onto large distribution and logistics hubs and corporate HQs.
Transitional Relief
A new transitional relief scheme will phase in large increases in liability, helping businesses adjust gradually. Details will be confirmed in the 2025 Autumn Budget.
Improvement Relief
Introduced in 2024, this relief provides 12 months of 100% rates relief on any increase in RV resulting from qualifying property improvements. It remains in place for 2026, encouraging investment in commercial premises but only applies where a property remains occupied through the period of works thereby excluding investors and developers from claiming this relief whilst undertaking refurbishment programmes
on their vacant stock.
Digital reforms
The government is also pushing forward with digital reforms to the business rates system with a soft launch anticipated during the 2026 Rating List. These include:
- Mandatory annual returns of occupier and lease information.
- Online portals for managing property data and appeals.
- Greater transparency in how valuations are calculated.
Ratepayers will need to stay informed and compliant to avoid penalties and ensure fair treatment.
Differences Across the UK
Scotland
- Uses a later AVD (1 April 2025).
- Has a more restrictive appeal processintroduced in 2023.
- No current plans for tiered multipliers.
Wales
- Shares the same AVD as England (1 April 2024).
- No confirmation yet on adopting tiered multipliers.
Northern Ireland
- Also uses the 1 April 2024 AVD.
- Operates under a separate rating system with its own appeal mechanisms.
Strategic Considerations for Ratepayers
Review Your Property Data
Ensure your property details held by the Valuation Office Agency (VOA) are accurate. Errors in floor area, usage, or condition can lead to incorrect valuations.
Understand Your Sector’s Trends
Some sectors like logistics and warehousing have seen rental growth, while others like high street retail have declined. Understanding these trends helps anticipate changes in liability.
Plan Capital Improvements Wisely
If you’re planning renovations or expansions, time them around changes to Improvement Relief. Ensure the works qualify and are completed in a way that maximizes relief eligibility.
Prepare for Appeals
If you believe your new RV is incorrect, you can use the Check, Challenge, Appeal process in England and Wales. Start early, as deadlines can be tight, and be sure to remember that evidence is key.
Budget for Changes
Even with transitional relief, some businesses will face higher bills. We can assist
your business, forecast your liabilities and adjust budgets accordingly.
Digital Reforms and New Responsibilities
The government is also pushing forward with digital reforms to the business rates system, with a soft launch anticipated during the 2026 Rating List. These include:
- Mandatory annual returns of occupier and lease information.
- Establishing Online portals for managing property data and appeals.
- Greater transparency in how valuations are calculated.
Ratepayers will need to stay informed and compliant to avoid penalties and ensure fair treatment.
Sector-Specific Impacts
Retail
- Likely to benefit from lower multipliers.
- Still vulnerable to valuation increases in prime locations.
Hospitality & Leisure
- Likely to benefit from lower multipliers regardless of RV size, which is likely to mean a significant reduction in rates liability for larger businesses and portfolios in these sectors.
- May face challenges if located in high-demand tourist areas.
Industrial & Logistics
- High rental growth means likely RV increases.
- Large distribution centres may face the higher multiplier.
Offices
- Mixed impact depending on location and demand.
- A large number of Corporate HQs, particularly in central London, are likely to be hit with the Super Multiplier.
What action should a ratepayer take now?
Countdown to Rates Revaluation 2026
1 – Review of Valuation
We strongly recommend a review of your current valuation to ensure there are no factual errors in the assessment. Rates valuations can be based on historic data
which could be incorrect. The deadline to submit an appeal for the current rating
list is 31 March 2026.
2 – Are you claiming all eligible reliefs?
There are a number different reliefs and exemptions available to reduce your
Business Rates liability. Our team of experts can guides you through these and
review your circumstances to advise on eligibility.
3 – Understand and budget for potential changes to your rates liability
Get in touch with a specialist team to understand how the 2026 Revaluation is likely to affect your commercial property portfolio. They can assist with budgetary advice and liability estimates as your business plans for the 2026 to 2029 period.
