Business rates for shops in 2026: check, relief and challenge
Updated 22 October 2026 · A guide for shop owners
Business rates changed on 1 April 2026. There is a new valuation list, and the old 40% retail relief has been replaced by permanently lower rates for shops. Many shops still pay more than they need to, usually because relief has not been applied or the property details are wrong. This guide covers England.
What changed in April 2026
New rateable values took effect on 1 April 2026, based on rents at April 2024. Retail, hospitality and leisure properties now get lower multipliers automatically: 38.2p in the pound for a rateable value under £51,000 and 43.0p from £51,000 to £499,999. Other properties pay 43.2p and 48.0p.
Your bill is roughly the rateable value multiplied by the multiplier, minus any relief. The City of London has its own rates.
Small business rate relief
If your shop is your only business property and the rateable value is £12,000 or less, you pay nothing. Between £12,001 and £15,000 the relief tapers down. If you take on a second property on or after 27 November 2025, you keep relief on the first for 36 months.
If the revaluation means you lost a relief you had before, supporting small business relief limits the rise to £800 or a percentage cap a year, whichever is greater. Many councils apply reliefs automatically, but some need a short form — ask yours.
Check, challenge, appeal
Find your rateable value on gov.uk. If the floor area, use or description looks wrong, raise a check through a business rates valuation account. You must do a check before you can challenge the value itself; the challenge must follow within 4 months of the check decision, and an appeal to the Valuation Tribunal within 4 months of the challenge decision.
Only give accurate information — false statements can lead to penalties. If you use an agent, appoint them through your own valuation account and never share your login. There is no official licence for rating agents, so ask what they charge in writing before you sign.
Common mistakes we see
The most common problems are simple: relief not applied after a change of owner, the wrong floor area, part of the shop counted as storage when it is sales space (or the other way round), or a bill still in the previous owner's name. A new owner may also be billed from the wrong date.
Another is not telling the council when things change — taking on a second property, the shop becoming empty or major works. The government is bringing in new duties to report changes, phased in from April 2026 with penalties planned for later years, so it is worth getting into the habit now.
What we need from you
Send us your latest rates bill and, if you have it, your lease or the floor plan. We look up the rateable value, compare it with similar shops nearby, check which reliefs should apply and tell you plainly whether there is anything worth doing.
If there is, we explain the next step, how long it usually takes and what it would cost before you agree to anything. If your bill looks right, we tell you that too.
Questions shop owners ask
Will a challenge definitely lower my bill?
No. Some checks find the value is right. We tell you honestly whether it looks worth pursuing before you spend time on it.
I've just taken over a shop — what should I do first?
Tell the council the date you became responsible, ask whether small business rate relief applies, and check the rateable value on gov.uk.
Do I have to pay while a check or challenge is running?
Yes. Keep paying the bill as it stands. If the value is reduced later, the council recalculates and refunds or credits any overpayment.