It may feel like the 2023 Rating List is fresh news, with us only recently entering into the second year of the three year Revaluation cycle. 1st April 2024, however, is marked as the Antecedent Valuation Date (AVD) for the forthcoming 2026 Rating List. Importantly, this means that future Business Rates tax liabilities, from 1st April 2026, will be based on rental values this year.

Any businesses who have recently agreed a new lease, or are looking to take a new lease, over the course of this year, should therefore be mindful that their future Business Rates liability is likely to be impacted by their own agreed rent.

Business Rates payable from 1st April 2026 = 2026 Rating Assessment (based on rental evidence, around 1st April 2024)  x the government set Business Rates Multiplier / Rate Poundage (this is currently at 49.9p in the £  for properties assessed at below £51,000 and 54.6p in the £  for larger properties.

Between now and the start of the 2026 Rating List there will also be a number of significant changes introduced into the Rating system, which it is important ratepayers are aware of.

The changes, to the Rating system, include new legal duties, imposed on ratepayers –

To notify the Valuation Office of changes affecting the Rates Assessment, such as improvements and extensions.

To notify the Valuation Office of changes to the Lease and Rent, again which may impact the Rating Assessment.

The submission of annual tax returns, specifically for Business Rates, confirming the details for a property, including factual details, including floor areas, as well as lease details.

The above changes mean the current system of Check, Challenge, Appeal (CCA) can move to Challenge, Appeal, with the first stage having been covered by the submissions above.

As a professional practice of Chartered Surveyors, specialising in the areas of commercial lease advice and Business Rates, Maughan Mitchell would be pleased to hear from you, if you need any advice regarding your current or future Rating Liabilities.