Business Rates Revaluation
The periodic reassessment of rateable values by the Valuation Office Agency, determining how much each commercial property pays in business rates.
Business rates revaluation is the process by which the Valuation Office Agency (VOA) reassesses the rateable value of every commercial property in England and Wales. The 2026 revaluation, which took effect on 1 April 2026, is based on rental values as of 1 April 2024. This means every commercial property now has a rateable value reflecting what it would have rented for on the open market at that date. Revaluations happen to keep rateable values in line with the property market, ensuring that businesses in areas where rents have fallen are not overpaying relative to those in rising markets. The government committed to more frequent revaluations (every three years) to reduce the gap between market rents and rateable values.
Key Points
- The 2026 revaluation is based on rental values as of 1 April 2024
- Revaluations now happen every three years to keep values current
- Transitional relief caps annual bill increases following revaluation
- You can challenge your rateable value through the VOA CCA process
- The RHL multiplier replaced annual retail relief from April 2026
How the 2026 Revaluation Works
The VOA assessed every commercial property in England using rental evidence from around 1 April 2024. For most retail and hospitality properties, they used comparable rental transactions. For specialist properties like hotels and pubs, they used the receipts-and-expenditure method, estimating rateable value from trading potential. The new rateable values took effect on 1 April 2026, and all business rates bills from that date are based on the updated figures. If your rateable value increased, transitional relief may cap how much your bill can rise in a single year.
Impact on Hospitality Businesses
Hospitality businesses were affected in different ways depending on location and property type. Properties in areas where commercial rents rose between the previous valuation date and April 2024 saw RV increases. Those in areas with falling rents saw reductions. The introduction of the permanent RHL multiplier at 38.2p (for properties with RV under 51,000) replaced the annual retail relief discount, providing more certainty for budgeting. The government also introduced a 3.2 billion transitional relief scheme to smooth the impact of large changes.
Challenging Your Revaluation
If you believe your new rateable value is wrong, you can challenge it through the VOA Check, Challenge, Appeal (CCA) process. First, check the facts the VOA holds about your property (floor area, use class, facilities). If these are wrong, submit corrections. If the facts are right but you believe the value is too high, submit a formal challenge with evidence of comparable rental values or trading figures. The appeal stage involves an independent Valuation Tribunal if you and the VOA cannot agree.
Frequently Asked Questions
When was the last business rates revaluation?
The most recent revaluation took effect on 1 April 2026, based on rental values as of 1 April 2024. The previous revaluation was in 2023, based on April 2021 values.
How often do business rates revaluations happen?
The government has committed to revaluations every three years. The next revaluation after 2026 is expected in 2029, based on rental values from April 2027.
What if my rateable value went up significantly?
Transitional relief caps how much your bill can increase in a single year. The exact cap depends on your property size and the scale of the change. You can also challenge the valuation through the VOA if you believe it is incorrect.
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