Business Rates: 2026 Revaluation

All commercial properties in England and Wales will receive new rateable values based on rental evidence from 1 April 2024. This updated valuation will remain in effect for the following three years (2026–2029). Properties that have seen rental growth or decline in recent years may experience significant swings in liability.

The government intends to introduce differentiated multipliers for the first time:

• Lower multipliers for Retail, Hospitality and Leisure (RHL) properties with a Rateable Value below £500,000.

• Higher multipliers for properties with RVs of £500,000 and above, regardless of sector.

This new structure is intended to support smaller businesses and rebalance the tax burden, though it will result in larger properties facing a disproportionate increase in liability. At present the Welsh and Scottish Governments have not indicated that they will be introducing similar tiered multipliers.

A new transitional relief scheme is expected to accompany the 2026 Revaluation. This will aim to phase in the impact of significant increases in rateable value.

Improvement Relief, which was introduced in England from April 2024, will still be in effect. This provides 12 months of 100% rates relief on any increase in RV resulting from qualifying property improvements. It’s vital to plan capital works carefully to ensure relief eligibility as the revaluation approaches.

As the Government shifts more of the fiscal burden onto high-value properties, companies with large regional HQs, distribution hubs, manufacturing plants, or landmark assets should expect closer scrutiny and potentially significant liability increases. Strategic preparation and early engagement will be essential.

Digital reform continues to evolve. The Government has indicated that by 2029, businesses will face new reporting obligations, and in particular, more regular updates on property use and tenancy details known as the Duty to Inform. This is expected to be introduced gradually from 2026, initially on a voluntary basis and is part of the move toward a more modern and data-driven system under the Business Rates Digitalisation Programme.