New Year, New Business Rates Strategy

Many business and property owners are treating 2026 as a pivotal year to get ahead of business rates changes, with the New Year a natural point to reset, review and plan before the new tax year and the 2026 revaluation. New Year, New Business Rates Strategy April with  a fresh tax year will arrive faster than many business and property owners expect. With the next business rates revaluation due to take effect from 1 April 2026 in England and Wales, now is the time to make some practical “resolutions” around business rates, rather than waiting for bills to land.​ The government has already confirmed that significant structural reforms are coming, including new multipliers and permanent lower tax rates for parts of the high street. Treating business rates as a strategic priority this January can help smooth the transition and protect cashflow over the next rating period.​ What Is Changing From April 2026? From 1 April 2026 a new rating list will come into force, updating Rateable Values (RV) across England and Wales for the 2026–29 period. These values will be based on more recent rental evidence than the current 2023 list, and many occupiers should expect material movements in their assessments.​ Alongside the revaluation, the government is replacing the current two-multiplier structure with a five-tier system that differentiates between small and standard properties, high-value assets and the retail, hospitality and leisure (RHL) sectors. For many RHL properties with rateable values under £500,000, permanently lower tax rates will replace the temporary RHL relief, funded in part by a higher multiplier for properties over £500,000.​ Resolution 1: Understand Your Future Exposure The first resolution for 2026 should be to build a clear picture of where your portfolio sits in the new regime. Key questions for owners and occupiers include:​

• Which assets are likely to fall into the new high-value band with rateable values of £500,000 or more, and therefore face the higher “large property” multiplier.​
• Which sites qualify as retail, hospitality or leisure and could benefit from the new, permanently lower RHL multipliers from April 2026.​
• How transitional relief or Supporting Small Business measures might cap year-on-year bill increases where liabilities jump after revaluation.​

By mapping properties against the five new multiplier categories now, businesses can forecast liabilities more realistically and avoid unwelcome surprises in early 2026.​ Resolution 2: Get Your Data and VOA Engagement Right Accurate, up-to-date property and occupational data will be critical as the Valuation Office Agency (VOA) finalises the 2026 list. The VOA has already been collecting rental information to support the revaluation, and incomplete or inconsistent returns increase the risk of incorrect assessments.​ Use the first quarter of the year to:

• Check that all recent lettings, lease renewals, refurbishments and changes of use have been captured in your internal records.​
• Ensure requests for information from the VOA have been properly completed, logged and tracked across your portfolio.​
• Put in place a clear internal process for reviewing draft 2026 rateable values which have been published and deciding where a challenge may be justified.​

A robust evidence trail will be invaluable if you need to query or appeal entries in the 2026 list.​ Resolution 3: Maximise Reliefs Before and After April The run‑up to April is also an opportunity to ensure that every available relief is being claimed, both under the current rules and as new schemes are introduced from 2026. For example, in Wales, small properties can access tapered small business rates relief and targeted support for childcare providers and post offices, while transitional relief from April 2026 will phase in increases over two years.​ Across England, the shift from temporary RHL relief to permanent lower RHL multipliers will help some occupiers but may remove generous discounts for others, particularly once caps on relief per business are taken into account. Owners and operators should:​

• Audit existing reliefs to confirm that eligibility criteria are still met and all qualifying properties are included.​
• Model what bills will look like once temporary reliefs roll off and the new multipliers apply from April 2026.​

Resolution 4: Align Property Strategy With Tax Changes The introduction of a higher multiplier for properties with RVs above £500,000 is intended to shift more of the burden onto large distribution centres, online retailers and sizeable investment assets. For portfolio owners, this raises strategic questions about asset mix, investment priorities and location decisions over the coming years.​ Potential actions to explore in early 2026 include:

• Reviewing whether any large single hereditaments could be reconfigured in a way that still makes operational sense but avoids exposure to the highest multiplier band.​
• Stress‑testing business cases for new developments, relocations or major refits using post‑2026 rates assumptions rather than historical bills.​
• Considering how rateable value changes interact with other costs such as rent, service charge and energy, to inform lease negotiations and break‑option decisions.​

Taking a joined‑up view of real estate, tax and operations will make it easier to turn these reforms into an opportunity rather than a pure cost increase.​ Resolution 5: Put Governance Around Business Rates Finally, the coming year is a good time to formalise how your organisation manages business rates across finance, estates and operational teams. A simple governance framework can ensure that nobody misses key deadlines or leaves potential savings on the table.​ Practical steps might include:

• Assigning clear internal ownership for monitoring business rates reforms, consulting with advisors and escalating material changes in liability.​
• Creating a central schedule of all properties, current and forecast rateable values, reliefs claimed and upcoming milestones such as draft list publication, bill issue dates and appeal windows.​
• Setting thresholds for when increases in rates bills should trigger a formal review or board‑level discussion.​

How Dunlop Heywood Can Help For many businesses, the combination of a new rating list, a five‑tier multiplier system and evolving reliefs will make 2026 one of the most complex years for business rates in over a decade. Specialist advice can help owners and occupiers turn New Year resolutions into a concrete plan that protects cashflow and supports long‑term strategy.​ Dunlop Heywood works with single‑site occupiers, multi‑site SMEs and large national portfolios to forecast liabilities, challenge inaccurate assessments and secure all available reliefs. To discuss how the 2026 changes could affect your properties – and how to prepare before the new tax year – contact the Dunlop Heywood business rates team:  info@dunlopheywood.com ​