On 1 April the government is changing the Rateable Value (RV) of commercial business properties in England and Wales. But what does this mean for you and how can you prepare?
Whether you’re based in a large city, small town or rural area, you need to be ready for the change, as it might affect your Business Rate bill and your rent.
First, it’s important to understand that RV isn’t the same as your Business Rates or rent. But it is used to calculate them. More on that below.
If you’re not familiar with Business Rates, I recommend reading our short article here, which explains them in simple terms. I’ve also linked to other useful information later in this article.
What's changing on 1 April 2026
The Government’s Valuation Office Agency (VOA) recently updated the rateable values of all commercial and other non-domestic properties in England and Wales. Coming into effect on 1 April, these adjustments might impact your business finances. It’s essential that you understand what is going on, to figure out if it impacts you.
Changes aren’t unusual as revaluations happen every three years to reflect the shifting commercial property market.
Your rateable value might not change, but you should check your future rateable value on the government’s website. Also, even if it increases, it doesn’t mean that your business rate bill will go up by a similar amount.
And they’ve posted this helpful explainer video.
However, be aware that the new figure may not be the exact amount, and may not account for any Rate Relief you might be eligible for. The RV is a guide. Find more information on claiming Rates Relief here.
How is your Business Rate calculated?
It’s worth emphasising again that your RV isn’t what you’ll pay in Business Rates. They’re separate figures but the RV is used to calculate Business Rates – here’s how it works:
Your local council calculates your Business Rate bill by multiplying your rateable value by the relevant multiplier set by the UK and Welsh governments. They’ll also assess whether to apply any Rate Relief that you may be eligible for. As a business owner and tenant, you’ll need to look for your Business Rate on your local council’s website.
What happens if your new RV pushes up your Business Rate?
Don’t panic – you can take steps to prepare for the rise.
If, after checking, your future RV is correct, look at your finances ASAP so you can cover the additional cost if it increases your Business Rate.
If you need additional financial support, you can apply for Rates Relief – if you haven’t already got it – which can decrease the cost. Some of the relief packages are part of the government’s scheme to help businesses recover from the Covid pandemic. Worth £4.3 billion, the financial support is available over the next three years:
- £3.2 billion Transitional Relief scheme for the largest ratepayers, including airports and hospitality.
- Supporting Small Business scheme worth over £500 million to help the smallest businesses expanding the Supporting Small Business scheme to businesses who were eligible for the Retail, Hospitality and Leisure (RHL) relief, protecting independent pubs and shops as they transition to permanently lower tax rates. This additional support is worth £1.3 billion
- From April 2026, the government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties. More information is available here.
If your SME is in Wales, look at the Welsh Government’s package of rates relief and multipliers. By the way, a multiplier is the tax rate used to calculate business rates.
Think your RV and/or Business Rate is too high?
To check whether your RV is accurate, you can compare it to the RV of nearby businesses on the government’s website. If your concerns are confirmed, you can make a challenge via your local authority. Here’s our advice about that process.
Think ahead to your next rent review
If you’ve got a rent review with your landlord coming up, be prepared to negotiate as they may use the new RV to justify a rent increase. If you prepare in advance, you can negotiate the best possible deal for your business. For advice on negotiating leases, including rent reviews, with your landlord, sign up to our Resource Hub on our Property Advice Services website.
Your to-do list
Here is a quick summary of steps you need to take before the end of March:
- Check your future RV on the government website.
- Compare with nearby properties’ future RVs.
- Prepare and submit a challenge to your local authority if you think the RV is incorrect.
- If your local council increases your Business Rates and you think it’s too high, submit a challenge.
- Look into government support packages to see if you’re eligible for any Rate Relief.
- If a rent review is coming up, prepare to negotiate in case rent increases.
- Budget for volatility.
- Engage advisers early if your premises are complex or high-value.
Get in touch
Please ask us for help if this is all too confusing for you, and we’ll point you in the right direction: info@propertyservices.co.uk.
We’re happy to help.
