Business rates revaluation takes place every 3 years and the next business rates revaluation comes into effect on 1 April 2026. The last revaluation came into effect on 1 April 2023, based on rateable values for 1 April 2021 which was during COVID and therefore unsurprisingly the rateable values are increasing. Based on the 2026 draft list the total rateable value in the London region is increasing by 22.3% and there is expected to be a 25% increase in the business rates collected by 2030.
The process will become more complicated. A business rates bill is calculated on a daily basis by multiplying the rateable value of the property by the relevant multiplier. There are five new multipliers that are being introduced to replace the two previous multipliers.
In line with the changes being made, charities should ensure that they implement the following next steps:
- 2023 Rating List: a consideration of the 2023 Rating List in the next few weeks. This could help reduce future baseline liability once the new rates are in place.
- 2026 Draft List: a check to ensure that there are no obvious errors in the 2026 Draft List – if there are, charities should flag these to the Valuation Office Agency ('VOA') before the bills are issued in March.
- Multipliers: a check that the correct multiplier has been applied.
The VOA have a ratings appeal process. Whilst there is a risk that an appeal may increase a rating, the appeal process has a high success rate. Charities should make any appeals relating to the 2023 Rating List promptly.
A new information duty on ratepayers is expected to be introduced after 1 April 2026 for a small number of customers before the duty is rolled out to all ratepayers by 1 April 2029. The new duty means ratepayers will have to tell the VOA within 60 days of a change to their property which could impact the rateable value (i.e. changes to the occupier, their lease or rent or physical changes to the property). There will also be an annual return for some ratepayers. Whilst no action is required at this stage, charities may wish to set up systems to assist with the compilation of up-to-date tenure information, so these are established ahead of the duty coming into force.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
