Blog: Business Rates 2026

Non-domestic rates, usually referred to as business rates, will be on the rise for many members from April. Those with non-agricultural enterprises should be aware of some important changes from April, when the whole nation receives updated valuations and some businesses likely seeing dramatic increases in their bills.

Property valuations are produced by the Valuation Office Agency (VOA), now part of HM Revenue and Customs (HMRC), who can make large and at times wildly inaccurate assumptions about a property.

As most assessments are now done remotely where the only information available may be through your website, social media and satellite imagery, leaving a lot of space for assumptions to be made about the size, use and income from a property.

Since the aim is to collect as much tax revenue as possible, the calculation process is frequently unclear, leaving ratepayers with little transparency over how their bills are determined. Most properties’ rateable value is based on their ‘annual rental value’, i.e. the amount for which they would let on the open market in good condition.

Many members will have spaces, especially on farms, that have a more fluid use. It can be important to keep recorded evidence and photos of buildings so that you can easily demonstrate that a certain space is agricultural in use, and therefore exempt from rates. You should be able to demonstrate what’s in a shed, regardless of the use or occupation structure.

Individuals may be asked to complete forms to provide the VOA with advice which can be unclear, with categories that don’t fully reflect your situation. We recommend seeking professional help, as it can be easy to trip yourself up resulting in increased Business Rates, and where applicable Council Tax bills.

For most, who already have a Rateable Value and have been assigned a new valuation from April 2026, which can be found here, you may look to appeal against the assessment.

Do not underestimate how long and laborious this process may be. The business rates appeal process is now known as “Check, Challenge, Appeal” (CCA). The VOA deals with checks and challenges, while the independent Valuation Tribunal for England (VTE) handles appeals. To challenge the valuation, a Government Gateway account needs to be set up and evidence provided to demonstrate that the VOA’s assessment is wrong. For more information please visit here.

Shropshire, along with many other rural counties, is an unappreciated gem with a number of excellent businesses between Whitchurch and Ludlow. However, a significant number of these businesses are set to experience substantial increases in their business rates from April.

These rises aren’t limited to pubs, who have rightly received so much public attention. They will have significant impacts across a number of sectors, negatively impacting whole areas and local economic ecosystems, hurting both local investment and job prospects, as well as wages.

The average business rates bills from a random selection of Shropshire business properties between 2023/24 and 2026/27 is:

Country house hotels – 301%

Community facilities* – 244%

Self-catering holiday lets - 242%

Farm shops – 225%

Pubs – 221%

Independent shops – 179%

Wedding venues – 137%

Large industrial units – 24%

Commercial spaces - 17%

*Community facilities include a mixture of properties such as Post Office, libraries, museums, Health Centre, kids play groups, village halls and sports clubs. It was assumed that all community facilities benefited from Retail, Hospitality and Leisure (RHL) relief.

Ludlow Museum and Resource Centre will benefit from Transitional Relief however their annual bill to jump from £1,250 to around £120,000 once the transition provisions expire.

A Parliament research briefing has also noted that there will be large rateable value rises for airports (295%), non-livestock markets (53%), four star and above hotels / 3-star chain hotels (97%), and ‘arenas/other sports facilities (142%). With the CLA’s own national assessment of a random sample of minerals related property shows a consequential 25% increase and 23% for abattoirs, of which 25% of the sample had closed in recent years.

The increase in rateable value will bring in a number of new properties above the £12,000 rateable value threshold (frozen since 2017) for the first time. Individuals should look at their assessment to see if it rings true and that all available reliefs have been applied.

Making a rates assessment isn’t always immediately clear. As there are a number of multipliers that are used in combination with the rateable value to calculate the actual bill. It is worth checking your bill to ensure that no errors have been made which has resulted in you paying more tax than you should.

So for example, a property with a Rateable Value of £16,000 x 0.432 (multiplier for a small business that doesn’t qualify for RHL – see the below table) would produce a Business Rates tax bill of £6,912 per annum.

There are a number of reliefs that may be available but may not compensate for the Rateable Values increases from April 2026. The main reliefs are:

• Small Business Rate Relief (SBRR)

You will not pay business rates if your Rateable Value is £12,000 or less in England, or £6,000 in Wales. This relief is gradually phased down from 100% to 0% to the Rateable Value of £15,000 in England and £12,000 in Wales.

• Empty property relief

Relief begins when the property becomes empty and provides 3 months relief. In some circumstances the relief can be extended, including for listed buildings.

Additional reliefs include rural rate relief and charitable relief, with each one having its own criteria. For full information on reliefs and exemptions members are encouraged to visit the government website

• Transitional relief

Where your rateable value increases by a significant amount, you may be able to benefit from a phased transition to the increase.

For more information on available reliefs the government website can be accessed here.

A new requirement is being placed on individuals to proactively inform the VOA of any changes to their commercial property from 1 April 2026. This will become mandatory for all by April 2029.

In essence, this places administrative burdens and risks of non-compliance on individuals as the system moves towards greater self-assessment.

Notable changes will need to be reported on an HMRC online portal within 60 days of the change occurring. This may become problematic, as it can be unclear for certain diversified agricultural businesses when the duty arises and what are considered to be ‘notifiable events’. Relevant changes will include, but aren’t limited to:

1. Changes in occupation, including detailing vacancies,

2. Changes to the physical characteristics of the property, including extensions, demolitions plus changes to plant and machinery,

3. Changes in the use

4. Provide information on the rent, lease, trade and any other important changes.

Individuals will additionally need to provide a taxpayer reference number to HMRC. This is part of the reforms aimed at modernising the business rates system, allowing for increased frequency of revaluations and aligning its administration with other taxes.

The government states that these changes are designed to improve accuracy, but in practice it is to increase tax take and push administrative burden onto ratepayers.

A new annual confirmation will be required within 60 days of 30th April each year, stating that all information on the property is correct.

Failure to comply with the Duty to Notify will result in penalties, which are expected to include fines and interest charges on unpaid rates. If a false statement is made in a submission, criminal penalties may proceed. To complicate matters, non-compliance will prevent a ratepayer from proceeding with a formal challenge against their property's valuation.

Members can contact their local CLA office if they have any further questions.

Because you have read this article, you may find the upcoming CLA webinar on Making Tax Digital of interest: https://members.cla.org.uk/MY-CLA/Events/Event-Details/eventDateId/4749