The current 2023 Rating List runs until 31 March 2026, so the business rates bill you’ve recently received (covering up to that date) is the last one based on this list. But what happens from 1 April 2026? That’s when the new 2026 Rating Revaluation kicks in - and your rates liability could change significantly.
How are business rates calculated?
The Rateable Value (RV) of a property is essentially its open market rental value, assuming a full repairing and insuring lease. The official definition is:
“The amount equal to the rent at which the property might reasonably be expected to let from year to year, if the tenant pays all usual tenant rates and taxes, and covers repairs, insurance, and other necessary maintenance costs.”
Each Rating List is based on rental values from two years earlier - known as the Antecedent Valuation Date (AVD). For example:
- The 2023 Rating List uses rental values from 1 April 2021.
- The 2026 Rating List will use values from 1 April 2024.
So, if market rents rose by 30% between April 2021 and April 2024, you can expect a similar increase in your property's rateable value - unless other factors come into play. The new levels of assessment will be published later this year.
Other key factors that affect what you pay
There are two main elements that influence your final business rates bill:
The Uniform Business Rate (UBR)
This multiplier is set by the Government and determines how much tax is collected through business rates. The current UBR is £0.499.
For 2026–27, the UBR will be announced in the Autumn Budget 2025. It will reflect both the revaluation outcomes and the broader economic landscape. Notably, the government plans to introduce five separate UBR multipliers, including:
- Lower rates for retail, hospitality, and leisure properties
- A higher rate for properties with a rateable value over £500,000
This change is designed to offer ongoing support to key sectors, while shifting more of the tax burden to higher-value properties.
Transitional relief
This mechanism is used to phase in significant changes in bills between rating lists, regardless of whether they increase or decrease.
The government is legally required to provide transitional relief for businesses facing steep rises. Details of the 2026 Transitional Relief scheme will also be confirmed in the Autumn Budget 2025.
With revaluations now happening every three years (instead of every five or seven, as in the past), these schemes may play a smaller role - but they’re still important in smoothing the transition.
If you're unsure how the 2026 Revaluation could affect your business rates, now’s a good time to start the conversation. We're here to help you plan ahead.
