Business rates for gyms: how gyms and health clubs are valued

How is a gym's rateable value worked out?

The VOA uses the rental method for gyms. It starts with the rent actually paid for your gym, checks it against rents for similar gyms, adjusts for incentives such as rent-free periods and landlord contributions, adds a figure for the tenant's fit-out and applies the resulting price per m² to the gross internal area.

Your rateable value (RV) is the VOA's estimate of the yearly rent the gym would have let for on the open market on 1 April 2024, the valuation date for the rating list that started on 1 April 2026. It assumes the property is empty, in reasonable repair and let on terms where the tenant pays for repairs and insurance. (Our guide to what rateable value means covers those assumptions in more detail.)

Gyms are covered by the VOA's Rating Manual section on private sports and leisure centres, which it calls health and fitness clubs. The VOA's instructions for gyms set out four main steps:

1. Start with the rent. Where your gym is let, its own rent is the starting point. It is then checked against rents for similar gyms and against the rateable values of comparable properties. Budget gyms have plenty of rental evidence, so they are valued mainly from rents.
2. Strip out the incentives. Gym operators often take new units with long rent-free periods or a landlord contribution towards the works. The VOA's guidance says headline rents need careful adjustment for these, including how long the incentive is spread over, for example to the first break or the end of the lease.
3. Add the fit-out. Many gym rents are for a bare shell. Changing rooms, showers, air handling and similar works paid for by the tenant can add rental value, so the VOA adds an amount per m² for the tenant's rateable fit-out.
4. Apply the rate to the floor area. The price per m² is applied to the gross internal area, with different rates for mezzanines, courts and other parts.

Are budget gyms, boutique studios and health clubs valued differently?

Yes. Budget and other dry-only gyms are valued from rents with a fit-out addition. Larger health clubs with pools follow the VOA's wet and dry scale. Small independent gyms and studios are valued by the VOA's regional teams, while chain clubs and larger gyms are valued by its National Valuation Unit.

The VOA sorts gyms by what they contain and who runs them. The list description on your valuation tells you which group you are in.

Budget and big-box gyms

The VOA notes significant growth in out-of-town gyms since the last list, mostly in former retail units with easy access and parking. Gyms have also moved into high streets and shopping centres as shop rents fell. These units are usually let, so their own rents, adjusted for incentives and fit-out, decide most of the value. The VOA does not apply its age and obsolescence allowance to budget clubs, because their age is meant to show through in the rents.

Boutique studios

Small studios for spin, yoga, Pilates, boxing or personal training may be in shop units, upper floors or light industrial units. They are usually valued from local rents, which may be shop, office or industrial rents depending on where they are. The question to ask is whether the comparables used are really what a studio operator would pay for that kind of space.

How are the floor area, mezzanines and changing rooms valued in a gym?

Gyms are measured to gross internal area. In dry-only gyms, changing rooms and other ancillary areas are valued at the full fitted gym rate, and mezzanines at between 50% and 100% of the main rate depending on how substantial and enclosed they are. A basic tenant-built mezzanine in a budget gym can be valued at £32.50 per m².

Gyms usually occupy large areas, so the measurement and the way each part is valued carry a lot of weight in the final figure.

Gross internal area

The VOA measures both dry-only gyms and wet and dry clubs to GIA: everything inside the perimeter walls on each floor, including internal walls, columns, stairwells and lift shafts. That is different from the net internal area used for shops and offices. It leaves out the thickness of the outside walls, canopies and external projections. If your gym is in a former retail warehouse, check that the measured area is the gym you occupy, and not the original unit before it was split or before you gave up part of it.

Changing rooms and ancillary space

In the VOA's 2026 guidance for dry-only gyms, all accommodation, including changing rooms and ancillary areas, is valued at the full fitted gym rate. This is different from shops and restaurants, where stores and back-of-house areas often get a lower rate. In a gym, the main way to reduce the figure for that space is to make sure the area itself is right.

Mezzanines

Many gyms put in a mezzanine for cardio or stretching. The VOA records whether a mezzanine is open to the gym or enclosed as a separate studio, and values it at between 50% and 100% of the main space rate depending on its specification, quality, finish, how it is fixed and how enclosed it is. Where costs show that a budget gym's tenant-installed mezzanine is of a basic specification, the guidance gives a rate of £32.50 per m², including fit-out. If your mezzanine is a simple steel platform and it has been valued at or near the full gym rate, you may want to ask why.

Floors, courts and halls

• Floors: for dry-only gyms the price assumes up to three floors, including any basement. Allowances may be appropriate where there is no lift.
• Converted squash courts: where squash courts form part of the main gym space, up to three are included at the full rate and further courts at 50%. Squash courts in a separate building are given a fixed amount per court.
• Badminton halls: valued at 50% of the main space rate, or up to 75% where the quality is much better.
• Car parking: included in the rate rather than added separately, except where parking would not normally come with the property, such as in city centres.

How are health clubs with pools valued?

Wet and dry clubs follow a VOA scale of shell values per m² by location and quality, plus £40 per m² for wet areas such as pools, saunas and steam rooms, and £15 or £17.50 per m² for the dry areas. Very large clubs get an allowance for size, older fit-outs an allowance for age, and some struggling clubs may be valued on 18% of turnover instead.

There is little rental evidence for full-service health clubs; the VOA says only two new wet and dry clubs have been added since the 2023 list. Its 2026 practice note therefore sets out bands, which were discussed with agents acting for most of the chain operators.

Greater London has its own scale, from up to £110 per m² for poor conversions to £200 per m² or more for central London "super clubs". On top of the shell value, bands 1 to 4 add £40 per m² for wet areas, which covers pools, saunas, steam rooms and spa pools but not changing rooms, and £15 or £17.50 per m² for dry areas. Where your club sits in its band depends on things like tariff, membership levels, competition and location.

Allowances worth knowing about

• Size: where the main space is over 4,000 m² GIA, an allowance applies, reaching 10% at 5,000 m², 20% at 6,000 m² and 30% at 7,000 m².
• Age of fit-out: an age and obsolescence allowance of up to 15% depends on when the club was last fitted out. A complete refit resets the date, so the VOA needs to know when your current fit-out was finished.
• Floors: the price assumes up to two floors, or three with a basement pool.
• Outside facilities: tennis courts, outdoor pools and pitches are added at set amounts, for example £1,650 for a floodlit artificial-surface tennis court.
• Combined heat and power: a £10,000 allowance applies where the club has a CHP system with a valid Climate Change Levy exemption certificate.

Clubs that trade poorly

The VOA has a "poor performers" scheme for wet and dry clubs that existed on 1 April 2024, have a GIA over 2,000 m² (or are a corporate-style club) and have a pool and surround of more than 174.99 m². For the 2026 list, the RV can be set at 18% of the sustainable turnover at that date, subject to a minimum of £45 per m² for dry fitted space plus 20% for wet. The VOA checks this against the floor-area valuation and uses the higher figure. It is up to the occupier to provide the turnover, and the VOA treats it as confidential.

Do gyms get the retail, hospitality and leisure multiplier?

In England, usually yes. Government guidance lists gyms, sports clubs, health spas and swimming pools as qualifying leisure property, and a membership requirement does not stop a gym counting. In 2026/27 that means 38.2p for an RV under £51,000 and 43p from £51,000 to £499,999, instead of 43.2p or 48p.

The RHL multipliers are set by the Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025. Government guidance for councils lists "sport and leisure facilities, such as gyms, sports grounds, and sports clubs" and "health spas, wellness centres, and massage parlours" as examples of qualifying leisure property. The property has to be used wholly or mainly for providing the facilities to visiting members of the public.

Points that come up for gyms:

• Members-only is fine. The regulations say needing a membership, as at a gym or private members' club, does not stop people being visiting members of the public.
• Staff-only gyms. A person going to their own workplace is not a visiting member of the public, so a gym only open to a company's own employees is unlikely to qualify on that basis.
• Mixed use. Councils look at the main use, and may consider floor space, turnover or staff. Medical and health uses such as physiotherapy are excluded, so a property used mainly as a physio or rehabilitation clinic with a small gym may not qualify, while a gym with a small treatment room usually will.
• Empty gyms. The RHL multipliers only apply to occupied property. An empty gym is charged on the ordinary multipliers once any empty relief runs out.
• The 1p supplement. Most properties in the list on 31 March 2026 also pay a 1p transitional relief supplement in 2026/27, unless they are getting transitional relief or supporting small business relief.

If an occupied gym in England is billed at 43.2p or 48p, ask the council why; it is the council, not the VOA, that decides whether the RHL multiplier applies. There is more on how the bands work in our guide to business rates multipliers.

How much are business rates for a gym? Worked examples

Multiply the rateable value by the multiplier, then take off any reliefs. A budget gym in England with an RV of £103,000 on the 43p RHL multiplier plus the 1p supplement would pay £103,000 × 0.44 = £45,320 in 2026/27 before reliefs. A small studio with an RV of £14,000 may get about a third off through small business rate relief.

The rents per m² below are made-up figures for illustration, not real values for any area. They show how the shell rent, fit-out, mezzanine and multiplier fit together.

Example 1: budget gym in a former retail warehouse

Now suppose the mezzanine had been valued at 75% of the £60 main rate (£45 per m²) instead of the basic £32.50 rate. Its value would be £18,000 rather than £13,000, giving an RV of £108,000 and an England bill of £47,520. If the main floor had been measured at 1,600 m² instead of 1,500 m², that would add another £6,000 to the RV. On a large unit, small differences add up.

Example 2: small boutique studio

A spin studio in a shop unit with an RV of £14,000, occupied by a business with no other property:

• England: £14,000 × 0.392 (38.2p RHL plus the 1p supplement) = £5,488. Small business rate relief at an RV of £14,000 is about one third, leaving about £3,659 for 2026/27.
• Wales: £14,000 × 0.502 = £7,028. Small business rates relief in Wales stops at an RV of £12,000, so none applies.

2027/28, England: at the Budget on 28 October 2026 the government announced RHL multipliers of 39.5p (RV under £51,000) and 44.5p (£51,000 to £499,999), due from 1 April 2027 and subject to regulations. It also announced that small business rate relief for qualifying RHL properties will be full up to an RV of £18,000, tapering to £21,000, so the studio in example 2 could get full relief from that date if it still qualifies. You can try your own figures in the business rates calculator.

What business rates reliefs can a gym get?

Small gyms and studios may get small business rate relief. Transitional relief or supporting small business relief may limit increases after the 2026 revaluation. Community sports clubs registered as CASCs and charities may get 80% mandatory relief. Empty gyms usually get 3 months of empty property relief.

England

• Small business rate relief: for occupied properties with an RV under £15,000, usually where the business has one property. An RV of £12,000 or less means nothing to pay; between £12,001 and £15,000 the relief tapers. This mostly helps small studios and independent gyms. From 1 April 2027 the thresholds for qualifying RHL properties are due to rise to £18,000 for full relief, tapering to £21,000.
• Transitional relief: limits how fast a bill can rise after the 2026 revaluation. For an RV over £100,000 the cap is 30% in 2026/27; it is 15% from £20,001 to £100,000. The council applies it automatically.
• Supporting small business relief: for gyms whose bill rose at the 2026 revaluation and which lost some or all of their small business rate relief, or the RHL relief that ran in 2025/26 (40% off in that year). The increase is limited to £800 or a percentage cap, whichever is greater.
• Charities and community amateur sports clubs (CASCs): up to 80% off where the property is mainly used for charitable purposes by a charity, or by a registered CASC. The council may top this up with discretionary relief. You cannot get this and small business rate relief together.
• Improvement relief: one year of relief for improvements completed on or after 1 April 2024 that increase the RV and add floor space or new features such as air conditioning, where you occupy the property during and after the works. This can be relevant if you add a mezzanine or extend.
• Empty property relief: usually 3 months free from when the gym becomes empty. The extra 3 months is for industrial premises such as warehouses. After that, full rates are charged on the ordinary multipliers.

Announced at the Budget on 28 October 2026, due from 1 April 2027: a "real-terms freeze" for qualifying RHL properties, capping bill increases at CPI inflation in 2027/28 and 2028/29 (not for increases from improvements or the loss of other reliefs; properties empty on 1 April cannot qualify that year).

Most reliefs come from the council, not the VOA. If you think you are missing one, contact the council that sends your bill.

How are business rates for gyms different in Wales?

Gyms in Wales are valued in the same way by the VOA, but there are no RHL multipliers in 2026/27. Most gyms pay the standard multiplier of 0.502, or 0.515 if the RV is above £100,000. Gyms do not get Food and Drink Hospitality Rates Relief. From 1 April 2027 a lower multiplier is due for gyms and fitness centres with an RV below £51,000.

• Multipliers 2026/27: the lower retail multiplier (0.350) is only for small shops, so gyms pay the standard 0.502, or the higher 0.515 if the RV is above £100,000. Properties described as a leisure centre, sports centre or swimming pool stay on the standard multiplier even above £100,000; gyms and fitness centres are not on that list.
• From 1 April 2027: the Welsh Government has said the lower multiplier will be extended to properties with an RV below £51,000 described in the rating list as "gymnasium and premises" or "fitness centre and premises", among others. The rate will be set in the 2027-28 budget. Because the multiplier follows the list description, it is worth checking what yours says. Description queries go to the VOA; billing queries go to the council.
• Small business rates relief: 100% up to an RV of £6,000, tapering to nothing at £12,000, for up to two properties per business in each council area.
• Food and Drink Hospitality Rates Relief: this 15% relief is for pubs, restaurants, cafes, bars and live music venues. Sports and leisure properties are excluded.
• Charities and CASCs: 80% mandatory relief, with up to 100% at the council's discretion.
• Telling the council: from 1 April 2026 you must tell the council within 60 days when you become the ratepayer, or when the gym becomes occupied or empty. There is a £500 penalty for not doing so.

Appeals in Wales go to the Valuation Tribunal for Wales.

What errors are common in gym valuations?

Things worth looking for include floor areas that don't match the unit, mezzanines valued at too high a rate or still listed after removal, fit-out additions that don't reflect what was actually installed, wet areas recorded where there are none, and rents analysed without allowing for rent-free periods or landlord contributions.

Go through your summary valuation on GOV.UK with your lease, lease plan and fit-out costs to hand. Things worth checking:

1. Area: is the GIA right for the space you actually occupy, especially if the unit was split from a larger retail warehouse?
2. Mezzanine rate: what percentage of the main rate has the mezzanine been given? If it is a basic platform you paid for, do you have the costs to show it?
3. Mezzanine still there? If a mezzanine or studio has been removed or changed, the valuation should reflect it.
4. Fit-out: does the addition reflect the fit-out you have? Wet-area rates should only be applied to pools, saunas, steam rooms and spa pools, not to changing rooms.
5. Rent analysis: if your own rent was used, were rent-free periods and any landlord contribution taken into account?
6. List description: are you shown as a chain "health and fitness club" when you are a small independent gym, or the other way round? In Wales the description also affects the multiplier from 2027.
7. Let-outs: is a separately let cafe, physio room or shop included in your RV when it is occupied by someone else?
8. Multiplier: in England, is an occupied gym being billed at an RHL multiplier?
9. Comparables: use "Find a business rates valuation" on GOV.UK to compare the price per m² with similar gyms of a similar size and age nearby.

When is it worth challenging a gym's rateable value?

It may be worth a check if the area, mezzanine, fit-out or wet areas recorded for your gym look wrong, if your rent was analysed without allowing for incentives, or if similar gyms nearby have a lower price per m². You can check and challenge free yourself, or a rating surveyor can do it for you.

Because gyms are large, a small error in the rate per m² or the area can change the RV by thousands of pounds. Situations where gym operators commonly take a second look include:

• Factual errors such as those listed above, which you correct with a check backed by plans, photos and fit-out invoices.
• Valuation points: for example, a mezzanine given a high percentage when the costs show a basic specification, rents from shops or other uses relied on without evidence that a gym would pay them, or a wet and dry club placed too high in its band.
• Trading problems at a wet and dry club: if your club meets the VOA's poor performers criteria, providing turnover may lead to a valuation on that basis.
• Changes nearby: things outside your property that affect its value, such as long-term disruptive roadworks or the demolition or reconstruction of a neighbouring property. If the problem is temporary, report it while it is happening.

The process is Check, then Challenge, then Appeal, through your business rates valuation account. You must make a check before you can challenge. A challenge generally has to be made within 4 months of the check decision and needs your reasons, evidence, a proposed rateable value and your rent details, including rent-free periods. The RV can go up, down or stay the same, so it is worth being sure of your evidence first. Our step-by-step guide to challenging business rates covers the deadlines.

You can do all of this yourself at no cost. Some operators use a rating surveyor instead, because the VOA's gym scheme has a lot of detail: fit-out additions, mezzanine percentages, bands and allowances. Fees are agreed directly with the surveyor.

Related guides

Business rates for gyms: frequently asked questions

Sources

We checked the facts on this page against these official sources on 13 November 2026:

• Rating Manual section 6 part 3: Sports and leisure centres (private), including 2026 practice notes (VOA, GOV.UK)
• Business rates multipliers: qualifying retail, hospitality or leisure (GOV.UK)
• Estimate your business rates (GOV.UK)
• Business rates relief (GOV.UK)
• Non-domestic rates multipliers (Business Wales)
• Details of the Budget package and the multipliers for 2027/28 (GOV.UK)

This guide is general information for properties in England and Wales, not advice. Business Rates Hub is an independent guide. We are not your council, the Valuation Office Agency (VOA) or any government service. You can check and challenge your rateable value yourself, free of charge, through the government's business rates valuation account.

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