Business rates are the tax on most non-domestic property. April 2026 brought the biggest reform in years: five multipliers, permanently lower rates for retail, hospitality and leisure, and a higher rate for the largest premises. Here is how your bill is worked out and the reliefs available.
The new five-multiplier system, how to calculate your bill, Small Business Rate Relief, transitional caps and how to challenge your rateable value.
Your bill is broadly your property's rateable value (RV) — set by the Valuation Office Agency to reflect annual rental value — multiplied by a multiplier (a pence-in-the-pound figure). A revaluation took effect on 1 April 2026, so most rateable values changed at the same time as the multiplier reform.
The old two-multiplier system has been replaced by five, reflecting both property type and value. Retail, hospitality and leisure (RHL) properties now get permanently lower multipliers in place of the temporary annual RHL discount, while the largest properties pay a new higher multiplier.
| Multiplier | Applies to | 2026/27 |
|---|---|---|
| Small business RHL | RHL property, RV under £51,000 | 38.2p |
| Small business | Non-RHL, RV under £51,000 | 43.2p |
| Standard RHL | RHL property, RV £51,000–£499,999 | 43.0p |
| Standard | Non-RHL, RV £51,000–£499,999 | 48.0p |
| High value | All property, RV £500,000 and above | 50.8p |
A non-RHL office with the same £30,000 RV would use the 43.2p small business multiplier — about £12,960 — so the RHL multiplier saves this shop roughly £1,500 a year. Estimate your own bill with the GOV.UK business rates calculator.
If you occupy a single main property, Small Business Rate Relief (SBRR) can wipe out or reduce your bill:
There are also reliefs for empty properties, charities (80% mandatory), rural businesses and properties in enterprise zones. Your local council administers reliefs and sends your bill, even though the multipliers are set nationally.
Because the 2026 revaluation changed values, transitional relief caps how fast bills can rise. The upward caps for 2026/27 are 5% for small properties (RV up to £20,000), 15% for medium properties (RV £20,001–£100,000) and 30% for large properties (RV over £100,000), applied before other reliefs. Businesses losing small business or rural relief at the revaluation have increases capped at the higher of £800 a year or the transitional cap.
If you think your RV is wrong, you can check and challenge it through the VOA's Check, Challenge, Appeal service. Keep paying your bill while a challenge is open — refunds are made if it succeeds.
This guide covers England. Business rates (or non-domestic rates) are devolved, so multipliers, reliefs and revaluation dates differ in Scotland, Wales and Northern Ireland. Check your devolved government's guidance.
gov.uk calculate your business rates · business rate relief · check and challenge your rateable value.
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The 2026 reform, the multipliers, relief, transitional caps and challenges — answered.
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