Published: July 2026 | Fact-Checked & Audited By: David Vance, CTA FCA (Chartered Tax Advisor & Accountant)
This guide is fully updated for the 2026/27 HMRC tax year. All calculations and tax rules have been audited against official UK legislation and statutory guidance.
Business Rates Revaluation is the process by which the government updates the Rateable Value of all commercial properties in the UK. Designed to adjust property values to reflect changes in the economic market and rental markets, revaluation ensures that the business rates system remains fair and balanced. In this comprehensive guide, we explain how the revaluation process works, how the Valuation Office Agency (VOA) assesses properties, details the new 3-year revaluation cycle, and outlines what to do if your property’s valuation increases.
What is Business Rates Revaluation?
Revaluation does not raise extra revenue for the government. Instead, it reallocates the total tax burden based on changes in property rental values. The VOA adjusts the Rateable Value of every shop, office, and factory to match its estimated open-market rental value at a specific **valuation date**.
The most recent UK revaluation came into effect on **April 1, 2023**, based on property market rents on **April 1, 2021**. To see how your updated Rateable Value impacts your annual tax bill, use our Business Rates Calculator.
The Shift to a 3-Year Revaluation Cycle
Historically, revaluations in England and Wales took place every five years. However, to make business rates more responsive to changing economic cycles and rental markets, the UK government introduced a mandatory **3-year revaluation cycle** beginning with the 2023 list. This means the next revaluation is scheduled to take effect on **April 1, 2026**, using a valuation date of **April 1, 2024**.
A 3-year cycle means that businesses will see smaller, more frequent changes in their bills rather than massive, unexpected jumps every five years. It also ensures that sectors facing economic downturns (such as retail) receive tax relief much sooner.
How the VOA Assesses Your Property
The VOA uses several methods to determine the Rateable Value of commercial assets:
- Rental Comparison Method: The VOA looks at actual rental agreements for similar properties in the immediate local area to estimate what your property would rent for. This is the standard method for shops, offices, and warehouses.
- Receipts and Expenditure Method: Used for specialized properties where rental data is scarce (such as pubs, hotels, and cinemas). Valuations are based on the business’s trading turnover and profit margins.
- Contractor’s Test: Used for unique assets (like hospitals or chemical plants). Valuations are calculated based on the cost of rebuilding the property plus the value of the land.
References & Official Sources
This guide is formulated in accordance with the following official tax guidelines:
- Non-Domestic Rating Act 2023: Legislation implementing the new 3-year revaluation cycles and administrative guidelines in the UK.
- VOA Commercial Property Valuation Guidelines: Official rating manual and rental comparison rules.
- HMRC Business Rates Revaluation Guide: Threshold rules and transitional relief schedules.
Frequently Asked Questions: Business Rates Revaluation
Q: When is the next UK business rates revaluation?
A: The next UK business rates revaluation will take effect on April 1, 2026. It will be based on property market rents assessed at the valuation date of April 1, 2024.
Q: What is Transitional Relief?
A: Transitional Relief limits how much your business rates bill can increase or decrease in a single year following a revaluation. It phases in large changes gradually over a three-year period.
Q: Can I check my property’s VOA valuation history online?
A: Yes, you can view the complete valuation history and rental calculation details for any property on the VOA’s “Find a business rates valuation” portal.