What is a business rates revaluation?
A business rates revaluation is a national reassessment of the rateable values assigned to commercial properties across England and Wales. It is carried out by the HMRC Valuation Office to ensure that rateable values reflect updated rental market conditions rather than outdated historic evidence.
Note: On 1 April 2026, the Valuation Office Agency (VOA) was absorbed into HMRC and ceased to exist as a separate executive agency. It now operates as the HMRC Valuation Office. You may still see references to the VOA in older correspondence and documents while branding is updated.
Each revaluation uses a fixed antecedent valuation date — a specific point in the past at which rental evidence is gathered. The 2026 revaluation used a valuation date of 1 April 2024, meaning all new rateable values reflect what properties could have achieved in rent at that date, not today.
Revaluations now occur every three years. The previous revaluation took effect in April 2023. The next is expected in 2029.
What changed in the 2026 revaluation?
The 2026 revaluation introduced three significant changes simultaneously, which is why many businesses have seen their bills change more sharply than in previous cycles.
First, rateable values were reassessed. Total rateable value in England rose by 19.6% between the 2023 and 2026 lists, though the change varied considerably by sector — some properties saw reductions, others much larger rises.
Second, the temporary Retail, Hospitality and Leisure (RHL) Relief scheme, which had been providing eligible businesses with a 40% discount on their gross bills, ended on 31 March 2026. This relief was not renewed.
Third, the government replaced the previous two-multiplier system with five new multipliers from 1 April 2026, including permanently lower rates for qualifying retail, hospitality and leisure properties. However, for many businesses, the removal of the 40% temporary relief has more than offset the benefit of the lower multiplier.
The new 2026 multiplier structure
From 1 April 2026, England moved from two multipliers to five, based on property type, use and rateable value. The rates are set in pence per pound of rateable value.
- Small Business Retail, Hospitality, and Leisure (RHL) Multiplier: 38.2p (for properties with an RV under £51,000).
- Small Business Non-Domestic Multiplier: 43.2p (for properties with an RV under £51,000).
- Standard Retail, Hospitality, and Leisure (RHL) Multiplier: 43.0p (for properties with an RV between £51,000 and £499,999).
- Standard Non-Domestic Multiplier: 48.0p (for properties with an RV between £51,000 and £499,999).
- High-Value Non-Domestic Multiplier: 50.8p (for all properties with an RV of £500,000 or above).
For comparison, the 2025/26 multipliers were 49.9p (small business) and 55.5p (standard) — with a separate 40% discount applied on top for qualifying RHL properties.
Which sectors have been most affected?
The impact of the 2026 revaluation has not been uniform. Some sectors have faced larger increases than others: across England, other commercial property rose 28.5% between the 2023 and 2026 lists, industrial property 21.4%, offices 14.6% and retail 10.0%.
For pubs and pub restaurants, the end of the 40% RHL relief means bills can rise substantially even after the new lower RHL multiplier is applied. In response, the government introduced an additional 15% relief specifically for eligible pubs and live music venues from 2026/27.
Hospitality properties more broadly — hotels, restaurants, gyms and leisure facilities — have generally seen rateable value increases, as rental evidence from the April 2024 valuation date reflected a recovering market after the post-pandemic period.
Retail has seen a mixed picture. High street retail units in many locations saw rateable value increases in line with or above the national average, while some secondary retail and out-of-town units saw smaller changes.
Offices and industrial properties have been less uniformly affected, with outcomes varying significantly by location and specification.
Landlords and owners of empty commercial properties should also note that higher rateable values from the revaluation flow directly through to higher rates bills. See our guide to business rates on empty property.
If your sector has been particularly affected, see our sector-specific guides: Retail, Hospitality & Leisure, Office & Industrial, Healthcare & Medical, Charity & Not-for-Profit.
A worked example — how bills changed in 2026
An illustrative pub with a rateable value of £25,000 in 2025/26 shows the effect. The figures below are illustrative, not an average or a typical result.
| 2025/26 | 2026/27 | |
|---|---|---|
| Rateable value | £25,000 | £32,500 (illustrative rise of 30%) |
| Multiplier | 49.9p (small business) | 38.2p (Small Business RHL — RV still under £51,000) |
| Bill before relief | £25,000 × 49.9p = £12,475 | £32,500 × 38.2p = £12,415 |
| 40% RHL relief | −£4,990 | — (scheme ended 31 March 2026) |
| 15% pub relief | — | −£1,862 (£12,415 × 15%, rounded) |
| Bill after relief | £7,485 | £10,553 |
Even though the multiplier fell from 49.9p to 38.2p and the pub gained a new 15% relief, losing the 40% RHL discount means the bill after relief still rises by around £3,068 (41%) year on year. Transitional Relief would in practice cap this particular increase at 15% for 2026/27, since a £32,500 rateable value falls in the Medium band — spreading the rise over more than one year rather than applying it all at once.
Figures are illustrative. Actual bills depend on the property’s rateable value, reliefs and transitional arrangements.
What is transitional relief and who qualifies?
Transitional relief is a government scheme that limits how sharply a business rates bill can rise or fall in the years immediately following a revaluation. It is designed to protect businesses from sudden large increases.
For 2026/27, bill increases for most businesses are capped at either £800 or the relevant percentage cap — whichever is greater. The percentage caps vary depending on rateable value band.
The Supporting Small Business scheme has also been extended, protecting businesses that lose some or all of their Small Business Rate Relief, Rural Rate Relief or RHL Relief as a result of the 2026 revaluation.
Transitional relief and the Supporting Small Business scheme are typically applied automatically by your local council. However, it is important to understand that transitional relief does not mean your rateable value is correct — it simply limits how quickly the full liability reaches you. If your underlying rateable value is too high, transitional relief will run out before the issue is resolved.
For questions about your specific bill and whether relief has been applied, contact your local billing authority.
Does revaluation automatically reduce my business rates?
Not necessarily. At each revaluation, rateable values may increase, decrease or remain broadly unchanged depending on how your property’s rental evidence compares with market movements in your sector and location.
In the 2026 revaluation, the majority of properties in England saw rateable value increases, reflecting rental market growth between 2021 and 2024. Even where the new lower multipliers partially offset this, many businesses — particularly those that were benefiting from the 40% RHL relief — have seen net bill increases.
What should I do if my rateable value has increased?
If your rateable value has increased significantly and you believe it does not accurately reflect market conditions, there are steps you can take.
The formal route is the HMRC Valuation Office’s Check, Challenge, Appeal process. This allows ratepayers to review the evidence behind their valuation, submit a formal challenge, and if necessary appeal to the Valuation Tribunal.
Before entering a formal process, it is worth establishing whether your property shows signs of potential over-assessment — for example, whether comparable properties nearby have lower rateable values, or whether the rental evidence used appears inconsistent with conditions at the April 2024 valuation date.
A free eligibility check is a useful first step. It takes under a minute and indicates whether your property may be worth reviewing further, without committing to anything.
Revaluation vs challenge: what is the difference?
A revaluation is a national reset applied to all properties simultaneously. It is carried out by the HMRC Valuation Office and businesses cannot opt out.
A challenge is specific to your individual property. It is initiated by you (or a representative) and argues that the rateable value assigned to your property is incorrect based on the available evidence.
You can challenge your rateable value at any point after a revaluation — you do not need to wait for the next one. If you believe your new 2026 rateable value is too high, a challenge can be submitted now.
See our guide on when to challenge your rateable value for more detail on the process and what evidence is typically required.
Should you wait for the next revaluation before acting?
The next revaluation is expected in 2029 — three years away. If your current rateable value is too high, waiting means three years of overpaying before there is any automatic correction.
In some cases, waiting may be appropriate — for example, if the evidence for a challenge is marginal and the cost of pursuing it outweighs the potential saving. However, if comparable properties are assessed at lower values, or if market conditions have changed materially since April 2024, a challenge now may be worthwhile.
There is also a separate mechanism — a Material Change of Circumstances (MCC) — which can allow a review outside the normal revaluation cycle if a physical or environmental change to the property qualifies. This is separate from the standard challenge process.