What Are the Business Rates for 2026/27 in England?

By Verity Commercial Services

What are the business rates for 2026/27 in England?

From 1 April 2026, a new business rates year begins across England — bringing with it updated multipliers, structural changes, and renewed financial considerations for commercial property owners.

For landlords, asset managers, and surveyors, understanding how the system works — and how the new changes apply — is essential.

This guide provides a complete overview of the 2026/27 business rates landscape, including the new permanent multipliers, how liability is calculated, and what it means for vacant commercial property.

What are Business Rates?

Business rates are a property tax on non-domestic property in England, payable by occupiers or, in the case of vacant property, the owner.

They are calculated using a simple formula:

Rateable Value × Multiplier = Annual Business Rates Bill

• Rateable Value (RV) is set by the Valuation Office Agency and reflects the estimated annual rental value of a property at a given valuation date.

• The multiplier is set by the UK Government and updated each financial year.

What’s New in 2026/27?

The 2026/27 rates year introduces a revised multiplier structure, designed to better reflect property use and value.

Instead of a single standard multiplier, there are now five distinct multipliers:

2026/27 Business Rates Multipliers (England)

Key Changes Explained

Greater targeting of Retail, Hospitality & Leisure (RHL)

Lower multipliers have been introduced for RHL properties, recognising the ongoing challenges faced by high street and hospitality sectors.

Higher rates for high-value properties

Properties with a rateable value of £500,000 or more now fall into a higher multiplier band (50.8p), increasing the tax burden on larger assets.

More structured system overall

The move to multiple multipliers creates a more tiered and targeted system, replacing the simpler structure used previously.

Continued revaluation cycle

The UK has now moved to a 3-year revaluation cycle, meaning rateable values will be updated more frequently to reflect market conditions.

How Much Could You Pay in 2026/27?

The financial impact of business rates depends entirely on the rateable value of your property and the applicable multiplier. Even for modest commercial properties, the cost of business rates can be substantial.

What Happens When a Property Is Vacant?

When a commercial property becomes empty, responsibility for business rates typically shifts to the owner.

Empty Property Relief

• Most commercial properties receive 3 months’ relief

• Industrial properties receive 6 months’ relief

After this period:

100% business rates liability usually applies, even if the property remains unoccupied.

This means that vacant property can quickly become a significant cost burden.

Why Vacancy Matters More in 2026/27

The introduction of new multipliers; particularly the higher rate for large assets – means that the cost of vacancy may be more pronounced for some portfolios.

For example:

• A £500,000 RV property → ~£254,000 annual rates

• A £1,000,000 RV property → ~£508,000 annual rates

Across multiple vacant assets, this can result in seven-figure annual exposure.

Reviewing Your Position: What to Consider

As the new rates year begins, landlords and asset managers should review:

✔ Rateable Value accuracy

Does the valuation reflect current market conditions?

✔ Relief timelines

When does empty property relief expire?

✔ Applicable multiplier

Which 2026/27 category applies to each asset?

✔ Portfolio exposure

What is the total annual liability across vacant properties?

✔ Strategy for vacancy

How will vacant assets be managed if they remain unoccupied

Are There Ways to Reduce Business Rates Liability?

Yes, depending on the circumstances of the property.

Options may include:

• Reviewing the rateable value through the Check–Challenge–Appeal process

• Ensuring all applicable reliefs and exemptions are applied

• Implementing structured empty property mitigation strategies

For suitable properties, mitigation can reduce or eliminate empty business rates liability, while keeping buildings active and maintained.

How Verity Supports Property Owners

At Verity Commercial Services, we support landlords, developers and asset managers across the UK to manage the cost and risk of vacant commercial property.

Through a structured King’s Counsel-approved mitigation model, we help clients:

• Eliminate up to 100% of empty business rates liability

• Keep properties active, secure and compliant

• Reduce the financial impact of vacancy

• Support flexible, short-term occupiers

Final Thoughts

The 2026/27 business rates year introduces a more targeted and structured system, but also reinforces an important reality:

Vacant property can carry significant financial liability.

Understanding how business rates are calculated — and how the new multipliers apply — allows landlords to make informed, strategic decisions about their assets.

For many portfolios, the difference between proactive management and reactive cost can be substantial.

Need support?

If you own or manage vacant commercial property and would like to protect your capital by saving 100% on empty rates, our team would be happy to help.

Get in touch to start your savings immediately:

0333 613 4583
[email protected]
veritygroup.uk