When did the 2026 business rates revaluation take effect?

The 2026 revaluation took effect on 1 April 2026. New rateable values apply from that date and will remain in place until the next revaluation, currently expected in 2029.

What are the new business rates multipliers for 2026/27?

From 1 April 2026, England operates five multipliers based on property type and rateable value. Qualifying retail, hospitality and leisure properties with a rateable value under £51,000 pay 38.2p in the pound. Non-RHL properties under £51,000 pay 43.2p. The full multiplier table is set out above.

Why has my business rates bill gone up after revaluation?

For many businesses — particularly in hospitality and retail — the 2026 revaluation has meant higher bills due to two factors occurring simultaneously: rateable values increased, and the temporary 40% Retail, Hospitality and Leisure Relief scheme ended on 31 March 2026. Even with lower multipliers, the removal of that relief has increased bills for many businesses that were benefiting from it.

What is transitional relief and will it apply to me?

Transitional relief limits how sharply your bill can rise following a revaluation. For 2026/27, increases are generally capped at £800 or the relevant percentage cap, whichever is greater. Relief is typically applied automatically by your local council. Contact your billing authority if you are unsure whether it has been applied to your bill.

Can I challenge my rateable value after the 2026 revaluation?

Yes. You can challenge your 2026 rateable value through the HMRC Valuation Office's Check, Challenge, Appeal process if you believe it does not accurately reflect market rental conditions at the April 2024 valuation date. A free eligibility check is a useful first step before committing to a formal challenge.

How long does a business rates challenge take?

Timescales vary. The initial Check stage requires the HMRC Valuation Office to review and respond. If a Challenge is then submitted, the process can take several months. Any agreed reduction is typically backdated to the date the challenge was submitted, so acting promptly matters.

Does poor business performance affect my rateable value?

For most commercial properties, no. Rateable values are based on rental evidence, not how well your business is trading. However, for specialist properties such as hotels, pubs and leisure facilities, trading evidence may influence the valuation methodology used by the HMRC Valuation Office.

What is the purpose of a business rates revaluation?

Revaluations update rateable values so they reflect rental market conditions at a fixed valuation date. This means your rateable value — and therefore your business rates bill — may increase, decrease, or remain unchanged.

Will a business rates revaluation reduce my bill?

It may increase, decrease, or leave your bill unchanged depending on market rental evidence at the time of the revaluation.

Can I challenge my rateable value after a revaluation?

Yes — if evidence supports a review, you can challenge your rateable value under the statutory Check, Challenge, Appeal (CCA) framework.

Does poor trading affect my rateable value at revaluation?

No. Revaluation is based on rental evidence from comparable properties at a fixed valuation date, not your business's trading performance or profitability.

Business Rates Revaluation 2026: What It Means for Your Property

The 2026 business rates revaluation took effect on 1 April 2026, updating rateable values across England and Wales for the first time since 2023. Total rateable values in England rose by 19.4% on average — but the impact varies significantly by sector and location. For many businesses in hospitality, retail and leisure, the combination of higher rateable values and the end of temporary relief schemes has resulted in substantially higher bills. This guide explains what changed, who has been most affected, and what to do if your new rateable value looks too high.

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. Across England, average rateable values rose by 19.4%, though the increase varied considerably by sector — some properties saw reductions, others much larger rises than the average.

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.

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 significantly larger increases than others.

Pubs and pub restaurants have seen some of the sharpest rises, with average rateable value increases of around 30% for standard pub properties. Combined with the end of the 40% RHL relief, many publicans have seen bills 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 Empty Property Business Rates guide

If your sector has been particularly affected, see our sector-specific guides:

A worked example — how bills changed in 2026

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.

Does revaluation automatically reduce my business rates?

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.