EVANS & PAYNE LLP

The Valuation Office published the Draft Rating List for 2026. You can now see on the Valuation Office website what your new Rateable Value (RV) will be from 1st April 2026.
 
This new assessment will last 3 years until 31st March 2029. 
 
The new Rateable Values are representative of annual rental values as of 1st April 2024.
 
Based upon the Draft 2026 Rating List, we have noted that Rateable Values have increased by 19.2%, showing the following sector movements:

• Retail +10%,

• Industrials +21%,

• Offices +14%,

• Hotels +76%

• Arenas +138%

 
Business Rates Multiplier
 
With the total Rateable Value increasing, the Government has been able to reduce the standard multiplier (the % applied to Rateable Values to give your liability) from 55.5p to 48p.
 
However, the Government have increased the complexity here with a new five-tier multiplier system being introduced. Occupiers of Retail, Leisure and Hospitality Premises will have discounted multipliers:
 
         RV below £51,000 – multiplier of 38.2p
         RV £51,000 to £500,000 – multiplier of 43p
 
For all Rateable Values over £500,000, there will be a 2.8p supplement; these properties will have a multiplier of 50.8p.

 

The table below summarises the new multipliers.

 

 

 

 

 

 

 

 

 

 

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The above Rates will be subject to additional supplements:
 
City of London Rate – subject to confirmation.
Crossrail for Greater London, RVs above £75,000 - subject to confirmation.

Supplement £0.01p for year 1 for those properties not benefiting from Transition Relief.

 

Transitional Phasing
 

Transitional relief is a scheme in England that limits how much a Business's Rates bill can change each year as a result of a revaluation. This means significant increases are phased in gradually, preventing sudden, sharp rises in costs for businesses.
 
The table below shows the increases each business will face depending on their new Rateable Value.

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*£28,000 instead of £20,000 in Greater London
 
To further complicate matters, the Government decided to add a supplement of £0.01 for 1 year to those properties that do not benefit from Transitional Relief.

Small Businesses
 
If a small business with a 2026 Rateable Value of £15,000 and below, takes on a second property, they will continue to benefit from receiving Small Business Rates Relief (SBBR) on the first property for 3 years instead of 1 year.

We would encourage Businesses to review their Draft 2026 List Rateable Values, and Evans & Payne will continue to advise you on how to mitigate your exposure to Business Rates.
 
We will write to all our clients in early December to advise them of the impact these new Rateable Values will have on their payments from 1st April 2026.

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In the meantime, you can visit the VOA website, CLICK THIS LINK To Gov.UK, to check your new assessments and estimate your Business Rates liability for next year.

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Mansion Tax

 

You will likely have noticed that the government plans to introduce a Mansion Tax on properties valued over £2 million. To facilitate this, the Valuation Office Agency (VOA) must revalue all homes currently in Council Tax bands F, G, and H. This revaluation will use property values effective as of April 1, 2026. The new tax will officially start on April 1, 2028, and be levied as follows

 

• Value between £2m to £2.5m               £2,500

• Value between £2.5m to £3.5m            £3,500

• Value between £3.5m to £5m               £5,000

• Value over £5m                                     £7,500

 

Supporting Small Businesses

 

The recent Budget announced continued relief for small businesses transitioning out of Small Business Rate Relief (SBRR) due to increased property values in the 2026 revaluation. 

 

• Eligibility: Businesses previously eligible for SBRR that lose it because their 2026 Rateable Value (RV) exceeds £12,000 are eligible for this new support scheme.

• Cap on increases: The annual increase in rates liability is capped at £800.

• Example: For a property that was previously below the £12,000 RV threshold and is now over £15,000, the maximum payable in year three of the scheme will be £2,400 (3 x £800 annual cap)

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