What’s Changing in Business Rates for England from 1 April 2026
The UK government is implementing a revaluation in business rates that will impact non-domestic (commercial) properties, especially in the Retail, Hospitality, and Leisure (RHL) sectors. (angliarevenues.gov.uk) Key changes include:
New Multipliers and Revaluation Background
- From 1 April 2026, revaluation will be based on valuations as of 1 April 2024. (angliarevenues.gov.uk)
- The system moves from two multipliers to five, including separate multipliers for RHL properties, standard non-RHL, and high-value properties. (angliarevenues.gov.uk)
- Sample multipliers for 2026-27:
- Small business RHL (RV < £51,000): 38.2p per £ rateable value. (angliarevenues.gov.uk)
- Standard RHL (RV £51,000-£499,999): 43.0p. (angliarevenues.gov.uk)
- High-value properties (RV ≥ £500,000): 50.8p. (angliarevenues.gov.uk)
Transitional Relief & Small Business Support
- Transitional Relief (TR): caps increases in bills due to revaluation over three years, varying by rateable value bands. (angliarevenues.gov.uk)
- Supporting Small Business Relief (SSB): expanded to include those losing RHL relief; caps on bill increases, minimum relief thresholds apply. (angliarevenues.gov.uk)
- Extension of the Small Business Rates Relief grace-period from 1 year to 3 years for ratepayers taking on additional properties from 27 November 2025. (angliarevenues.gov.uk)
- Pubs and live music venues will get an additional 15% relief on their bills plus a freeze in real-terms for two more years. (angliarevenues.gov.uk)
Example Case: Small RHL Property Owner
Sarah owns a pub with RV £45,000:
- Under the old system, she'd pay using the standard multiplier (~43–48p). Under the new small-business RHL multiplier she gets a lower rate (38.2p). (38.2p vs ~43–48p is a 10–15% reduction in rate) (angliarevenues.gov.uk)
- If her bill increases because of revaluation, the Transitional Relief scheme caps that increase and phases it in over three years. (angliarevenues.gov.uk)
- If she loses some Small Business Rate Relief because of shape or use, SSB Relief will help limit the hit. (angliarevenues.gov.uk)
Practical Tips for Businesses & Property Owners
- Check new RVs early: Valuation details released in late 2025; challenging valuations before 31 March 2026 is crucial. (angliarevenues.gov.uk)
- Estimate impacts under new multipliers: Use rateable value × new multiplier(s) to forecast your upcoming bill. Compare TR & SSB relief if eligible.
- Plan for cash flow changes: Bills may rise even with reliefs; budgeting ahead is essential.
- Understand eligibility: “Wholly or mainly” use is required for RHL relief; mixed-use properties may get different treatment.
- Watch deadlines: Many reliefs and caps take effect from 1 April 2026; late appeals can be missed.
Broader Significance
This reform signals a shift towards a more differentiated business rates system aimed at supporting high-street and leisure businesses while asking high-value properties to carry a larger share. If successful, this could contribute to UK economic regeneration, especially in town centres.