A guide to business rates in England

From April 2024, all properties with a rateable value below £51,000 automatically benefit from the small multiplier.

This revised structure introduces more variation by sector and property size, with permanently lower multipliers for qualifying retail, hospitality and leisure properties. The full multiplier structure is set out below.

*Estimates based on projected CPI in the previous September (OBR forecast 3%)

In addition to the standard multiplier, some properties are subject to supplements.

These supplements are added to the multiplier when calculating your bill and may apply depending on your property’s location, value and eligibility.

The 2026 scheme follows a similar structure to the 2023 scheme but uses your actual liability at 31 March 2026 as the starting point, excluding local supplements such as BRS or the City of London levy.

2023 transitional arrangements

*<£28,000 in London

This limits how quickly your bill can rise following revaluation. It applies only to increases in liability – known as upward phasing – meaning reductions in rateable value are reflected immediately.

The 2023 scheme applied only to changes in rateable value and did not cover the loss of other reliefs, meaning some ratepayers experienced significant increases. Supporting Small Business Relief was introduced to limit this, capping annual increases at £600 (£50 per month), and was applied automatically by billing authorities.

SSBR caps

*<£28,000 in London

Where a business loses eligibility for reliefs following revaluation, additional support may apply to limit rate increases.

Where your bill increases following revaluation, and loses eligibility for reliefs such as Small Business Rates Relief or rural relief, Supporting Small Business Relief may apply to limit the increase. If eligible, your bill will increase by no more than the higher of £800 or the relevant percentage cap.

This provides support for lower-value properties and remains one of the most widely used reliefs.

• 100% relief for properties with a rateable value up to £12,000, tapering to zero at £15,000
• Relief may still apply where multiple properties are occupied, provided any additional properties each have a rateable value below £2,900, and the total combined value does not exceed £20,000 (£28,000 in London)
• Where an additional property is taken on, a grace period of up to 36 months may apply to retain relief on the original property
• The thresholds for SBRR were not increased for the 2026 valuation list

This applies where properties are used wholly or mainly for charitable purposes.

• 80% mandatory relief is available for charities, trustees of charities and Community Amateur Sports Clubs (CASCs). This includes organisations whose activities qualify for VAT reliefs
• Properties that receive this relief are not eligible for Small Business Rates Relief or any associated reduction in the multiplier
• Additional discretionary relief may be available
• Independent fee-paying schools are no longer eligible following VAT changes
• Where a property is unoccupied and owned by a charity or CASC, a 100% exemption from empty rates may apply where it is next intended to be used for charitable purposes

This continues to support essential services in designated rural areas. 100% relief is available for small food shops, general stores and post offices with a rateable value of up to £8,500, and the sole pub or petrol station in a settlement with a RV of up to £12,500.

Retail, hospitality and leisure support has evolved from temporary reliefs into a permanent multiplier-based system.

Between 2020 and 2022, Expanded Retail Discount provided up to 100% relief for eligible occupied properties, followed by a reduced level of support as trading conditions improved.

From April 2022, this transitioned into Retail, Hospitality and Leisure Relief, initially set at 50%, then increased to 75% for the 2023/24 and 2024/25 rating years. This was subject to a cash cap of £110,000 per business across all properties in England.

For 2025/26, the level of relief falls to 40%, with the £110,000 cash cap continuing to apply. Estate agents and recruitment agencies are excluded.

Latest RHL changes

From April 2026, the current relief scheme will be replaced by permanently lower, sector-specific multipliers for qualifying retail, hospitality and leisure properties. To qualify, properties must:

• be occupied
• have a rateable value below £500,000
• be used for qualifying purposes such as shops, restaurants, cafés, bars, cinemas or gyms

The introduction of lower multipliers removes the previous cash cap, meaning there is no upper limit on the level of relief a business may receive.

From April 2024, Improvement Relief is available where qualifying works increase your property’s RV. This allows the increase in your bill to be deferred for up to 12 months.

Qualifying works include:

• Physical improvements such as extensions
• Internal reconfiguration or enhancements that increase the usable space or value of a property

The relief only applies to occupied properties and may be withdrawn if the property changes occupation. You’ll need to apply through your local authority, which will work with the Valuation Office Agency to assess how the increase in rateable value should be treated. The relief continues to apply under the 2026 valuation list.

If you let out a property as short-term holiday accommodation, it may be assessed for business rates rather than council tax if it is available to let for at least 140 days per year.

To qualify, the property must also be let for at least 70 days per year. You may be asked to provide evidence, such as booking records, advertising listings or letting agreements.

This provides targeted support for occupied properties used as pubs or live music venues.

• Pubs must be open to the public, allow entry without a requirement to purchase food, and permit drinks to be bought at a bar.
• Live music venues must be primarily used for the performance of live music, although other activities such as serving food and drink may take place where they remain secondary to that use.
• For 2026/27, eligible properties receive 15% relief on their business rates liability. There is no cap on the amount of relief available, and from April 2027 increases in bills are limited to the rate of inflation until March 2029.
• The relief does not apply to properties mainly used as nightclubs or theatres.

This provides support for film and TV studios following significant increases in RVs in the 2023 revaluation.

• A 40% relief applies from 2024 to 2034, calculated on the gross business rates charge.
• The benefit may be limited in the short term where properties are already subject to transitional relief.
• The relief may also be affected where RVs are successfully challenged.

This relief provides 100% business rates relief for new and expanding businesses located within designated freeport areas. Relief is available until 30 September 2026 and applies for up to five years from the date a business first becomes eligible. It applies to new occupiers and certain existing businesses that expand within a qualifying freeport site.

Current freeport locations are:

• East Midlands
• Freeport East (Felixstowe and Harwich)
• Humber
• Liverpool City Region
• Plymouth and South Devon
• Solent
• Teesside
• Thames

This provides support for businesses located within designated Enterprise Zones.

• Billing authorities may grant up to 100% relief for eligible businesses, including some empty properties and small businesses.
• Relief applies for up to five years and is capped at £275,000 per business.
• To qualify, a business must have been in the zone, or moved into it, before April 2018. The cost of the relief is fully funded by the government.

Exemptions apply to eligible plant and machinery used in onsite renewable energy generation and storage including:

• Rooftop solar panels
• Wind turbines
• Battery storage

• 100% relief is available for properties used wholly or mainly as heat networks
• A heat network supplies heating or cooling to other properties from a central source and must use a low-carbon energy source to qualify. This includes supplying energy to homes, shops, public buildings, hospitals and offices

• From April 2026, 100% relief applies to eligible electric vehicle charging points and electric vehicle-only forecourts
• Relief applies for 10 years and is available where charging infrastructure is separately assessed for business rates

A discount of up to £1,500 has been available for office space occupied by local newspaper titles. While this relief ended in March 2025, it may still be relevant for earlier billing periods and financial reporting.

100% relief is available for separately assessed public toilets, including those operated by local authorities. This applies retrospectively from April 2020.

A rateable value allowance applies to stud farms, which is reflected in the assessment set by the Valuation Office Agency.

Local authorities may grant discretionary relief where it supports local economic objectives, including up to 100% relief in certain cases. Any award must be considered to be in the interest of local taxpayers, with billing authorities typically funding a proportion of the cost.

From April 2024, the previous time limit for granting, amending or withdrawing relief after the end of the rating year was removed, providing greater flexibility in how relief is administered.

Certain properties are exempt entirely, including agricultural land, places of worship and some infrastructure-related uses.

Additional niche reliefs may also apply in specific circumstances, depending on property use and eligibility.

Relief may be available if your property is empty, although this is usually time-limited and depends on your specific circumstances.

In most cases, empty properties benefit from a short initial exemption from business rates. After this period ends, full rates are typically payable unless another exemption applies.

For commercial properties, this exemption usually lasts for three months. For industrial properties, including warehouses, it extends to six months.

Properties with a rateable value below £2,900 are exempt from paying business rates while empty, until they are reoccupied.

Listed buildings remain fully exempt from business rates while unoccupied, with no time limit.

Partial occupation

If part of your property is temporarily unused, you may be able to apply for relief on the vacant portion. This is granted at the discretion of the billing authority under Section 44A of the Local Government Finance Act 1988 and is typically only available for a limited period.

There is no formal right of appeal against a decision, although many local authorities offer an internal review process.

Decapitalisation rates are used to value certain specialist properties where rental evidence is not available, such as schools, hospitals and infrastructure assets. These properties are assessed using the contractor’s basis, which reflects construction costs rather than rental value.

Unlike most elements of valuation, these rates are set by central government. They have remained unchanged since 2017 and continue to apply for both the 2023 and 2026 valuation lists. The rates are:

• Education, healthcare and defence properties = 2.6%
• All other properties = 4.4%

Some large infrastructure assets are assessed on the central rating list rather than local lists. From April 2023, certain large telecom networks and the Channel Tunnel Rail Link were moved to the central list, with decisions made on a case-by-case basis.

The mobile telecom sector continues to be assessed on local rating lists, although this remains under review ahead of future revaluations.

Completion notices determine when a property becomes liable for business rates following development or refurbishment.

From 26th December 2023, the rules were extended to allow notices to be issued not only for new properties, but also for existing properties that have been substantially altered and temporarily removed from the rating list.

This means that refurbished properties, including those brought back to a lettable condition, may now be brought into rating earlier than under previous rules.

The table below summarises how the ability to issue completion notices has changed following the 2023 amendments.

Completion notice position (pre and post NDR Act 2023)

*Property incapable of beneficial occupation (John Laing & Son Ltd v Kingswood Area Assessment Committee [1949] 1 All ER 224 CA)

** Assuming the property can reasonably be expected to be completed to CAT B and be ready for occupation within 3 months

The government is introducing new obligations requiring ratepayers to provide information to the Valuation Office Agency as part of wider reforms to the business rates system.

This ‘Duty to Notify’ will be introduced on a phased basis from April 2026 and fully implemented by April 2029. It will apply to all ratepayers – including those who currently pay no business rates – and will place new mandatory obligations on businesses.

These requirements are expected to substantially increase administrative responsibilities and include penalties for non-compliance.