Rating Revaluation Already Underway
The 2023 Rating List may still feel new. Yet, we’ve already entered the second year of the three-year Revaluation cycle. Crucially, 1st April 2024 marked the Antecedent Valuation Date (AVD) for the next Rating List, which will take effect from 1st April 2026.
Why 2024 Rents Matter
From April 2026, Business Rates liabilities will reflect rental values around April 2024. Any businesses agreeing a new lease this year—or negotiating one—should understand that their own rent could directly impact their future Business Rates.
The Formula
Business Rates payable from 1st April 2026 will be calculated as:
2026 Rating Assessment × Business Rates Multiplier
(Current multipliers: 49.9p in the £ for RVs below £51,000; 54.6p for larger properties.)
Major System Changes Coming
Significant reforms to the Rating system will arrive before the 2026 list takes effect. These include new legal duties for ratepayers.
Key Obligations
Businesses must:
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Notify the Valuation Office of any physical changes to a property, such as improvements or extensions
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Report lease or rent changes that could affect the Rating Assessment
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Submit annual Business Rates tax returns, confirming property details, including floor areas and lease agreements
These requirements mean the current Check, Challenge, Appeal (CCA) process will evolve. The “Check” stage will be replaced by data submissions, so the process becomes Challenge, Appeal.
How We Can Help
As Chartered Surveyors, Maughan Mitchell specialises in Business Rates and commercial lease advice. If you’re concerned about future liabilities or want to understand how changes could affect your property, contact us today.
