How Do the April 2026 Business Rates Changes Affect You?
From new multipliers to new reliefs, 1 April 2026 saw the introduction of a raft of new measures that impact business rates bills.
Here is an overview of the main points.
New business rates multipliers for qualifying businesses
The government has replaced retail, hospitality and leisure (RHL) relief with two lower business rates multipliers. This will apply to properties with a rateable value below £500,000, with eligibility determined by local authorities.
The new multipliers are:
Business Category | Rateable Value | New Multiplier |
RHL Small Business | Below £51,000 | 38.2p |
RHL Standard | £51,000 – £499,999 | 43.0p |
Large | £500,000 and above | 50.8p |
Non-RHL Small Business | Below £51,000 | 43.2p |
Non-RHL Standard | £51,000 – £499,999 | 48.0p |
Business rates revaluation
The rental values of business properties are revaluated every three years. The latest revaluation, based on 2024 values, came into effect on 1 April 2026. Changes in rateable values will have a direct impact on business rates bills.
Transitional relief
To support businesses seeing large rises in their rates bill, the government is introducing a transitional relief scheme that caps annual increases and phases in the changes over three years.
The cap depends on the property's 2026 rateable value, and ranges from 5% for rateable values up to £20,000 to 30% for those over £100,000.
Supporting Small Business Scheme
From 1 April, businesses losing partial or full business rates relief or rural rates relief will have bill increases capped at £800 or the relevant transitional relief cap, whichever is highest. This includes those who lose their retail, hospitality and leisure relief.
In addition, those already receiving the 2023 Supporting Small Business relief will see their support extended for a further year. This capped sum will be applied prior to changes in other reliefs or local supplements.
Transitional relief supplement
To help fund the £3.2bn transitional relief and the Supporting Small Business Scheme, businesses not eligible for this support will see their multiplier rates increase by 1p for the year beginning 1 April 2026. This would mean a property with a rateable value of £100,000 would see business rates increase by £1,000.
Relief for pubs and live music venues
For one year, pubs and live music venues will see an additional 15% reduction on their bills after other reliefs have been applied. Only occupied properties are eligible.
Small Business Rate Relief grace period extended
The government has extended the grace period for small businesses that expand into a second property after 27 November 2025. These businesses are now eligible for Small Business Rate Relief on their original property for three years instead of one.
Electric vehicle relief
The business rates for eligible electric vehicle charging points and electric vehicle-only forecourts will be eligible for 100% relief for ten years. This only applies to charging points that are separately assessed by the Valuation Office Agency and to EV-only forecourts.
If you are affected by the changes to business rates and wish to discuss these with a legal specialist, the Wilkinson Woodward team are here to help.