Business rates for shops: key facts
- The VOA values most shops by rental comparison, applying a price per square metre from local rents to the net internal area (NIA).
- Zone A is the strip of ground floor sales space nearest the street, usually 6.1 metres (20 feet) deep. Zone B is valued at half the Zone A price, Zone C at half of Zone B, and the remainder at half of Zone C.
- Not every shop is zoned: the VOA says large department stores and supermarkets, for example, are not.
- From 1 April 2026 most shops in England pay the retail, hospitality and leisure (RHL) multipliers: 38.2p for a rateable value under £51,000 and 43p from £51,000 to £499,999.
- In Wales, small-to-medium retail shops with a rateable value below £51,000 pay the retail multiplier of 0.350 in 2026/27.
- You can check and challenge your shop's valuation free yourself through a business rates valuation account, or a rating surveyor can do it for you.
How does the VOA work out a shop's rateable value?
The VOA estimates the yearly rent your shop could have been let for on 1 April 2024, assuming it was empty, in reasonable repair and the tenant paid repairs and insurance. For shops it does this by rental comparison: it collects rents for similar nearby shops, turns them into a price per square metre and applies that to your floor area.
The rateable value is not the rent you pay, and it is not your bill. For a typical shop the VOA works like this:
- Gathering rents. The VOA collects rents paid for shops in the area, including yours.
- Valuation schemes. Similar shops in the same area are grouped into a local valuation scheme, so they share a price per square metre. You can see the scheme details in your business rates valuation account.
- Measuring. Shops are measured to net internal area (NIA), the usable space inside the walls. NIA leaves out toilets, structural walls, stairwells, columns and cleaners' rooms.
- Applying the price. The price per square metre is applied to each part of the shop. On a zoned shop, the front sales area is worth more than the back (see below).
- Adjustments. The VOA also considers unusual shapes, extra window frontages, access, split levels and pillars. Plant such as air conditioning, sprinklers and cold stores may be shown separately.
The same method covers hairdressers, banks and other high street businesses, and a property can be valued as a zoned shop even if you don't use it as one.
What is retail zoning and how does Zone A work?
Zoning splits the ground floor sales space into strips across the full width of the shop, starting at the building line. Zone A is the first strip, usually 6.1 metres deep, and gets the full price per square metre. Each zone behind it is valued at half the rate of the one in front: Zone B, Zone C, then the remainder.
Shoppers see and use the front of a shop most, so that space is worth the most rent. Zone depths can differ by location, and not every shop has all four zones.
Worked example: zoning a small high street shop
Imagine a shop 6 metres wide internally and 20 metres deep from the building line to the first structural wall, with a stockroom beyond that wall.
| Zone | Depth | Area | Price per m² | Value |
|---|---|---|---|---|
| Zone A | 0 to 6.1 m | 36.6 m² | £300 | £10,980 |
| Zone B | 6.1 to 12.2 m | 36.6 m² | £150 (half A) | £5,490 |
| Zone C | 12.2 to 18.3 m | 36.6 m² | £75 (half B) | £2,745 |
| Remainder | 18.3 to 20 m | 10.2 m² | £37.50 (half C) | £382.50 |
| Stockroom (not zoned) | beyond structural wall | 15 m² | £30 (made up) | £450 |
| Total | £20,047.50 | |||
Over half the total comes from the front 6.1 metres, which is why depth and the Zone A price matter so much. If the real depth to the structural wall were 18 metres rather than 20, Zone C would shrink to 34.8 m² (£2,610) and there would be no remainder, taking about £517 off the figure in this example.
What isn't zoned?
- Large stores. Department stores and supermarkets, for example, are valued on their floor area without zoning.
- Space beyond the first structural wall on the ground floor, such as storage, offices and kitchens. These are valued separately at their own price per square metre.
- Upper and lower floors used with the shop, including sales space. These are also valued separately.
- Toilets for customers only, which are taken out of the zone they fall in and shown as a separate item.
Which shop details most often need correcting?
The details that most affect a zoned shop are the depth from the building line, which walls are structural, the treatment of toilets, pillars and stairs, and extras such as air conditioning, sprinklers and CCTV. These are worth checking against your own measurements and photos.
The VOA's guidance on making a check for shops explains how these should be treated:
- Depth from the building line. Depth is measured from the building line, usually the display window, back to the first structural wall.
- Recessed doorways. If your door is set back from the shop front, the recessed area is still measured from the building line and included in the zones.
- Structural and non-structural walls. A non-structural wall could be removed without putting in structural support. Space behind a non-structural partition, such as a back office, is still zoned; only a structural wall ends the zoning.
- Width. Width ignores shop fittings and removable linings.
- Customer toilets. Toilets for customers only are deducted from the zone and added separately.
- Pillars and staircases. Columns and stairs should be measured and their area deducted from the zone they fall in.
- Storage beyond the structural wall. This should be shown as a separate, unzoned item, not as part of the zoned sales area.
- Upper floors. The floor at street level is the ground floor. Check the right floors are listed.
- Air conditioning and sprinklers. Say whether they cover the whole shop or only part. Floor-standing portable air conditioning units and stand-alone fire extinguishers don't need declaring.
- CCTV. The VOA asks for the number of cameras and when they were installed.
- Outdoor display or seating areas, and parking. These can be added or corrected, with plans or photos.
What multiplier does a shop pay from April 2026?
Most shops in England now pay the retail, hospitality and leisure (RHL) multipliers: 38.2p for a rateable value under £51,000 and 43p for £51,000 to £499,999 in 2026/27. Properties with a rateable value of £500,000 or more pay 50.8p.
The 2026 revaluation came into effect in England and Wales on 1 April 2026, using rents at 1 April 2024. At the same time, England replaced the old RHL relief with lower RHL multipliers. Whether a shop qualifies is set by the Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025.
| England 2026/27 | Rateable value under £51,000 | £51,000 to £499,999 |
|---|---|---|
| Qualifying retail, hospitality and leisure | 38.2p | 43p |
| Other properties | 43.2p | 48p |
Bill example, England 2026/27
- A qualifying shop with a rateable value of £20,000: £20,000 × 0.382 = £7,640 before any reliefs. On the non-RHL small business multiplier it would be £20,000 × 0.432 = £8,640.
- A larger qualifying shop with a rateable value of £60,000: £60,000 × 0.43 = £25,800 before reliefs.
Reliefs may then reduce the bill. The City of London has different multipliers.
Looking ahead: at the Budget on 28 October 2026 the government announced 2027/28 multipliers of 39.5p (small business RHL) and 44.5p (standard RHL), due from 1 April 2027 and subject to regulations.
Which business rates reliefs can shops get?
In England a shop may get small business rate relief if its rateable value is under £15,000, supporting small business relief if it lost relief at the 2026 revaluation, and transitional relief, which caps large increases. Changes announced at the Budget on 28 October 2026 raise the SBRR thresholds for qualifying RHL properties from 1 April 2027.
- Small business rate relief (SBRR). With a rateable value of £12,000 or less you usually pay no business rates. Between £12,001 and £15,000 the relief tapers from 100% to 0%; for example, £13,500 gets 50%. You usually need to have only one property.
- Supporting small business relief. For businesses whose bill rose at the 2026 revaluation and who lost some or all of their SBRR, RHL relief or other listed reliefs. The 2026/27 increase is limited to £800 or a percentage cap, whichever is greater.
- Transitional relief. Caps how fast a bill can rise after the revaluation. For a rateable value up to £20,000 (£28,000 in London) the cap is 5% in 2026/27. Councils apply it automatically.
Changes announced at the Budget on 28 October 2026
These are due from 1 April 2027, subject to regulations:
- For qualifying RHL properties, including shops, full SBRR up to a rateable value of £18,000, tapering to nothing at £21,000, until 31 March 2029.
- Bills for qualifying RHL properties held to inflation in 2027/28 and 2028/29 (not for increases caused by improvements).
- Vape shops lose access to SBRR and the RHL multipliers.
Shops in Wales
Wales has its own multipliers and reliefs. In 2026/27 small-to-medium retail shops with a rateable value below £51,000 pay the retail multiplier of 0.350; for example £20,000 × 0.350 = £7,000 before reliefs. Small business rates relief in Wales is 100% up to £6,000, tapering to nothing at £12,000.
When might it be worth challenging a shop's rateable value?
It may be worth a closer look if your Zone A price is higher than similar shops nearby, if the measurements or zoning look wrong, or if something outside your control, such as long-term roadworks or demolition next door, is affecting the shop.
Start by opening your valuation on the GOV.UK Find a business rates valuation service, then look up similar shops on the same street or parade. Compare like with like.
- Zone A price. If shops in similar positions nearby have a lower Zone A price, ask why. There may be a good reason, such as a better pitch.
- Measurement and zoning errors. Compare the VOA's areas with your own plans. Look at the depth, where the zoning stops, partitions, toilets, pillars and stairs.
- Material change of circumstances. GOV.UK gives examples such as the reconstruction or demolition of a neighbouring property and long-term disruptive roadworks. If the problem is temporary, report it through a check while it is still happening.
A challenge can lead to a lower, higher or unchanged rateable value, so a review should look at everything, not just the point you are unhappy with.
How do you check and challenge a shop's valuation?
You use a free business rates valuation account on GOV.UK. First you raise a check to confirm or correct the facts, then, if you still disagree, a challenge within 4 months of the check decision. If the challenge doesn't resolve it, you can appeal to the Valuation Tribunal.
- Check. Confirm or correct your shop's details with plans, photos and your lease. A check is needed before a challenge, even if the facts are right.
- Challenge. Usually within 4 months of the check decision, or within 16 months of submitting the check if it is about a change in the surrounding area such as roadworks. You need reasons, evidence, a proposed rateable value and rent details, all sent together.
- Appeal. To the Valuation Tribunal for England, or for Wales, within 4 months of the challenge decision. Only evidence from the check and challenge can be used, and you keep paying your rates meanwhile.
You can do all of this yourself at no cost. Some shop owners use a rating surveyor because it saves time and the surveyor knows how to build evidence, which comparable shops to use and the deadlines. Knowingly false information can lead to a penalty.
What will a rating surveyor need to look at your shop?
Usually your lease and rent details, floor plans and photos, and your latest rates bill.
- Your latest rates bill.
- Your lease, rent, rent reviews, rent-free periods and any incentives you received.
- Floor plans, or your own measurements, showing the building line, structural walls, partitions, toilets, pillars and stairs.
- Photos of the shop front, sales floor, stockroom and upper floors.
- Dates and evidence of anything outside affecting the shop, such as roadworks.
Any fees are agreed directly with the surveyor before they start work.
Related guides
Business rates for shops: frequently asked questions
How are business rates for shops calculated?
The VOA sets a rateable value from what the shop could have been let for on 1 April 2024. The council multiplies it by the multiplier (for most shops in England in 2026/27, 38.2p under £51,000 or 43p above) and takes off any reliefs.
What is Zone A in business rates?
Zone A is the front strip of a shop's ground floor sales space, usually 6.1 metres deep from the building line. It carries the full price per square metre. Zone B is valued at half that, Zone C at half of Zone B, and the remainder at half of Zone C.
Are all shops zoned?
No. Large department stores and supermarkets, for example, are not zoned. Space beyond the first structural wall and other floors are valued separately.
Can I check my shop's Zone A price against other shops?
Yes. The GOV.UK Find a business rates valuation service shows summary valuations, so you can compare your shop with similar ones on the same street or parade.
Do I need a surveyor to challenge my shop's rateable value?
No. You can check and challenge free yourself through a business rates valuation account. Some owners use a rating surveyor to save time and for help with evidence, comparables and deadlines.
Could my rateable value go up if I challenge it?
Yes. After a challenge the rateable value can go down, up or stay the same, for example if the VOA finds space it had missed.
Do shops still get retail relief in 2026?
In England the old RHL relief was replaced from 1 April 2026 by lower RHL multipliers for qualifying properties. Other reliefs, such as small business rate relief, may still apply.
What changes for small shops from April 2027?
At the Budget on 28 October 2026 the government announced that, from 1 April 2027, qualifying RHL properties get full small business rate relief up to a rateable value of £18,000, tapering to £21,000. Vape shops lose SBRR and the RHL multipliers.
How are shops charged in Wales?
The VOA values them the same way, but Wales has its own multipliers and reliefs. In 2026/27 retail shops with a rateable value below £51,000 pay the retail multiplier of 0.350.
Sources
We checked the facts on this page against these official sources on 10 November 2026: