What is rateable value?: key facts
- A rateable value (RV) is an estimated yearly open-market rent for a business property, set by the Valuation Office Agency (VOA).
- Rateable values in the current list for England and Wales are based on rental values at 1 April 2024, the antecedent valuation date (AVD). The list took effect on 1 April 2026.
- The law assumes the tenancy starts on the valuation date, the property is in reasonable repair, and the tenant pays the rates, repairs and insurance. The VOA also assumes it is vacant and available to let.
- The same definition applies whether a property is rented, owner-occupied or never let at all, so every business property has a rateable value worked out on the same basis.
- The VOA uses three main methods: rental comparison, receipts and expenditure (the profits method) and the contractor's basis.
- Your rateable value is not your rent and not your bill. The bill is RV × multiplier, minus any reliefs.
- Key RV thresholds in England in 2026/27 include £12,000 and £15,000 (small business rate relief), £51,000 (the switch from small business to standard multipliers) and £500,000 (the higher multiplier).
- You can see your RV and how it was worked out in your business rates valuation account, and check or challenge it free there, or a rating surveyor can do it for you.
What does rateable value mean?
Rateable value is the rent a business property might reasonably be expected to let for, from year to year, on the assumptions set out in the Local Government Finance Act 1988. In practice it is the VOA's estimate of a fair yearly open-market rent on a fixed valuation date.
The legal definition is in Schedule 6, paragraph 2(1) of the Local Government Finance Act 1988. Put simply, the rateable value of a business property (the law calls it a hereditament) is the yearly rent it could reasonably be expected to let for, if it were let from year to year on three statutory assumptions, which are covered in the next section.
A few points follow from that definition:
- It is a notional rent. It describes an imaginary letting between a reasonable landlord and a reasonable tenant. The VOA's Rating Manual calls this the hypothetical tenancy, and it exists whatever your real lease says, and even if you own the property outright.
- It covers every business property the same way. The definition applies to properties that are rented, owner-occupied or never actually let. That is why a school, a hospital or a theme park still has a rateable value, even though nobody rents them.
- "From year to year" does not mean a one-year lease. The Rating Manual explains that the courts have treated it as a tenancy the tenant can reasonably expect to continue for more than a year, of a length typical for that kind of property.
- It is a yearly figure. Rateable value is expressed as an annual amount in pounds, which is why it can be compared with annual rents.
Each separately occupied unit usually has its own rateable value. In England, parts of a building that touch and are used for similar purposes get one value; parts separated by another occupier or by shared lifts, stairwells or hallways get separate values. Wales has followed the same rules since 1 April 2023.
What assumptions are used to work out a rateable value?
The law assumes the tenancy begins on the valuation date, the property is in reasonable repair (ignoring repairs a reasonable landlord would consider uneconomic), and the tenant pays the usual rates and taxes, repairs, insurance and upkeep. The VOA also assumes the property is vacant, available to let on the open market and let between a reasonable landlord and tenant.
These assumptions are what make one rateable value comparable with another. They also explain most of the gaps between rateable value and real rents.
| Assumption | What it means in practice |
|---|---|
| The tenancy begins on the valuation date | The rent is judged as if agreed on 1 April 2024 for the current list, not when your lease actually started or was last reviewed. |
| The property is in reasonable repair | Disrepair that a landlord would normally put right is generally ignored, so a run-down unit is valued as if it had been repaired. Repairs a reasonable landlord would consider uneconomic are left out of this assumption. |
| The tenant pays rates, repairs and insurance | The figure is a "full repairing and insuring" style rent. If your rent includes service charges, utilities or the landlord's repairs, it will not line up directly with your rateable value. |
| The property is vacant and available to let | The VOA values the property itself, empty and on the open market, rather than your business inside it. |
| Rent agreed between a reasonable landlord and a reasonable tenant | Rents between connected parties, or deals struck under pressure, may not reflect the open market and can be adjusted or given less weight. |
Why is my rateable value based on 1 April 2024?
Each rating list has a fixed valuation date called the antecedent valuation date (AVD), set two years before the list comes into force. For the list that started on 1 April 2026 in England and Wales, the AVD is 1 April 2024, so rental values are judged as they were on that day.
Rents change all the time, so every rateable value in a list is tied to the same date to keep them consistent. The VOA's Rating Manual explains that modern lists use a date two years before the list starts, because estimating rents ahead of time proved too difficult.
| Rating list | In force from | Valuation date (AVD) |
|---|---|---|
| 2017 list | 1 April 2017 | 1 April 2015 |
| 2023 list | 1 April 2023 | 1 April 2021 |
| 2026 list (current) | 1 April 2026 | 1 April 2024 |
The date is set by order: for the 2026 lists, the Rating Lists (Valuation Date) (England) Order 2023 and the equivalent Wales order. Revaluations now take place every three years.
Two dates, not one. The AVD fixes the level of rents. But if your property physically changes during the life of the list, the change itself is taken into account from a later date (the Rating Manual calls it the material day). The Manual's example: an extension built part-way through a list can be reflected from when it is completed, but the enlarged property is still valued using rents for similar properties at the AVD. So an RV does not drift up or down with the rental market between revaluations; it changes only when the property, or certain physical things around it, change.
This is also why your RV changed on 1 April 2026: the new list re-based every value on 2024 rents instead of 2021 rents. Our 2026 revaluation guide covers what changed and the help available with bigger bills.
How does the VOA work out a rateable value?
The VOA uses three main methods depending on the property and the evidence available: rental comparison for commonly rented property such as shops, offices and warehouses; receipts and expenditure (the profits method) for properties such as cinemas, theme parks, pubs and hotels; and the contractor's basis, based on building cost, for properties such as schools, hospitals and airports.
All three methods aim at the same thing: the rent in the statutory definition. They just get there from different evidence.
| Method | Used for (examples) | How it works in outline |
|---|---|---|
| Rental comparison | Shops, offices, cafes, factories, warehouses | Rents paid around the AVD are analysed, allowing for lease terms, incentives, tenant's improvements, whether rent includes services, connections between landlord and tenant, and when the rent was agreed. The result is usually a price per m² applied to the measured floor area. |
| Receipts and expenditure (profits method) | Cinemas, theme parks; pubs and hotels use a related fair maintainable trade approach | Starts from the fair maintainable trade a reasonably efficient operator could achieve, takes off costs of sales, working expenses and a fair return for the operator. What is left is what could reasonably be paid in rent. Results from sample properties are turned into percentages of income for similar properties. |
| Contractor's basis | Schools, hospitals, airports | Estimates the cost of building a modern equivalent on a cleared site, adjusts for age and condition, adds the land and site works, then applies a decapitalisation rate set in law at each revaluation. |
The VOA's own example of the contractor's basis: a school whose property and land are estimated at £1 million, with a decapitalisation rate of 2.6%, has a rateable value of £1,000,000 × 2.6% = £26,000.
Measuring floor area. For the rental method, area matters. The VOA usually measures shops, offices and restaurants to net internal area (the usable space, leaving out things like toilets, stairwells, lift shafts and internal structural walls) and factories, workshops and warehouses to gross internal area (everything inside the perimeter walls).
Valuation schemes. Similar properties are valued in groups. Rental-method properties are grouped into local schemes; receipts and expenditure and contractor's basis properties are usually grouped nationally. Your scheme is shown in your valuation account.
Our property guides go into the detail for shops (including zoning), offices and pubs (fair maintainable trade).
Is rateable value the same as rent?
No. Rateable value is an estimate of rent on fixed legal assumptions at 1 April 2024. Your actual rent may have been agreed on a different date, on different terms, or with incentives, so the two figures are often different. Your actual rent is still important evidence for the VOA.
Your rent and your rateable value are measuring different things:
- Different date. Your rent was agreed whenever your lease or last review was; your RV reflects rental values at 1 April 2024.
- Different terms. Your lease may make the landlord responsible for repairs, include a service charge, or give you a rent-free period. The RV assumes the tenant bears rates, repairs and insurance.
- Market, not individual deals. The VOA considers what similar nearby properties rent for, so if your rent is out of line with comparable properties, your RV may not follow it.
The Rating Manual says that the actual rent on the property is still important evidence, because it relates to the real property with all its advantages and drawbacks. That is why the VOA may ask you for rent and lease details, and why a challenge must include your rent details, including any rent-free periods.
We will cover this comparison in more depth in a separate guide to rateable value versus rent.
What is rateable value not?
Rateable value is not your rent, not your business rates bill, not the price your property would sell for, and not a measure of how well your own business is doing. It is a notional yearly rent for the property on the statutory assumptions.
Common misunderstandings we see:
- "My RV is what I pay." No. The council charges a number of pence for every £1 of RV (between 38.2p and 50.8p in England in 2026/27), then takes off any reliefs, so the bill is a fraction of the RV.
- "It's the value of my building." No. It is a yearly rental figure, not a sale or capital value.
- "A bad trading year should lower it." Not on its own. For most properties the VOA values the property, not your business. Even for trade-valued properties such as pubs, the figure is based on what a reasonably efficient operator could achieve, not your own accounts year by year.
- "My rent went down, so my RV will too." Not automatically. Between revaluations, rents are fixed at the AVD level; changes in the market after that date generally wait for the next revaluation.
- "A higher RV always means a higher bill." Not necessarily. At a revaluation the multipliers are also revised, and reliefs may apply, so a change in RV does not always mean the same change in your bill.
How does rateable value affect my business rates bill?
Your council multiplies your rateable value by a multiplier, then takes off any reliefs. The RV also decides which multiplier applies and whether reliefs such as small business rate relief are available, so where it falls against certain thresholds can matter as much as the figure itself.
The basic sum is rateable value × multiplier − reliefs. The GOV.UK example: a dental surgery with an RV of £60,000 pays the 48p standard multiplier in England in 2026/27, so £60,000 × 0.48 = £28,800 before any reliefs.
Rateable value also controls which rules apply. Thresholds that matter in 2026/27 include:
| Rateable value | England (2026/27) | Wales (2026/27) |
|---|---|---|
| Small business rate relief | Full relief at £12,000 or less; tapers to nothing between £12,001 and £15,000 (usually one property only) | Full relief up to £6,000; tapers to nothing between £6,001 and £12,000 |
| Lower multipliers | RV under £51,000: 43.2p, or 38.2p for qualifying retail, hospitality and leisure | Retail multiplier 0.350 for certain small shops with RV below £51,000 |
| Standard multipliers | £51,000 to £499,999: 48p, or 43p for qualifying retail, hospitality and leisure | Standard 0.502 |
| Higher multipliers | £500,000 or more: 50.8p | Higher 0.515 for RV above £100,000 (with some public-service exceptions) |
Because of these thresholds, a small difference in RV can sometimes change the multiplier or the relief, which is one reason it is worth making sure the details behind your figure are right. You can try different figures in our business rates calculator. A separate guide will explain the full bill calculation step by step.
From April 2027: at the Budget on 28 October 2026 the government announced new multipliers for England due to take effect from 1 April 2027, subject to regulations. Rateable values themselves are not changed by that announcement.
How do I find my rateable value?
You can look up your rateable value for free with the GOV.UK 'Find a business rates valuation' service, or see it in your business rates valuation account once you have added your property. Your council's business rates bill also shows it.
There are two main ways to see your figure online, both free:
- Find a business rates valuation on GOV.UK lets you search by address and see current and past rateable values, plus summary valuations for comparable properties.
- Your business rates valuation account on GOV.UK shows how your rateable value was calculated, such as floor areas, prices per m² and extra items, and the valuation scheme used. You need an account to report changes or start a check.
When you look at the detail, check the basics first: is it the right property and the right parts of the building, are the floor areas sensible against your lease plan, is the description of use right, and are extras such as parking, air conditioning or sprinklers ones you actually have?
We are planning a separate step-by-step guide to finding your rateable value. In the meantime, our guide to challenging business rates explains how to set up a valuation account.
When can my rateable value change, and what if it looks wrong?
Your rateable value changes at each revaluation, and can also change during a list if the property or its surroundings physically change, if the VOA corrects an error, or after a check or challenge. You can report changes and raise a check or challenge free through your valuation account, or a rating surveyor can do it for you.
A rateable value can change:
- At a revaluation, when every property gets a new value (the next one is due three years after 2026).
- When your property changes, for example if you extend, alter, split or merge premises, or the use changes. GOV.UK says to report changes so you are paying the right amount and do not get a backdated increase in your bill.
- When something outside affects it, such as long-term disruptive roadworks or the demolition or reconstruction of a neighbouring property (a "material change of circumstances"). If the issue is temporary, it has to be reported while it is still happening.
- After a check or challenge. The value can go down, go up or stay the same.
The process is Check, Challenge, Appeal. A check confirms or corrects the facts; a challenge disputes the valuation itself and must usually be made within 4 months of the check decision; an appeal goes to the Valuation Tribunal for England or the Valuation Tribunal for Wales. You can do all of this yourself, free, through your business rates valuation account. Some people use a rating surveyor instead, because they know local rental evidence and what the VOA expects. Any fees are agreed directly with the surveyor. Our challenge guide sets out the stages and time limits.
Is rateable value worked out the same way in Wales?
Yes. The VOA sets rateable values in both England and Wales, on the same statutory definition, and the current Welsh list also took effect on 1 April 2026 based on values at 1 April 2024. What differs in Wales is how the bill is worked out from it: different multipliers and reliefs.
Points that are the same in England and Wales:
- The VOA values the property, using the same definition, assumptions and valuation methods.
- The current list started on 1 April 2026 with an AVD of 1 April 2024 (the Welsh date is set by the Welsh Ministers, under the Rating Lists (Valuation Date) (Wales) Order 2023).
- Since 1 April 2023, Wales uses the same rules as England on whether connected parts of a building get one rateable value or several.
What is different in Wales:
- Multipliers: 0.350 (retail, for certain small shops), 0.502 (standard) and 0.515 (higher, RV above £100,000) in 2026/27.
- Small business rates relief: full relief up to £6,000 RV, tapering to nothing at £12,000, and up to two properties per business in each local authority.
- Appeals go to the Valuation Tribunal for Wales.
- Telling the council: from 1 April 2026 ratepayers in Wales must tell their council within 60 days when they become the ratepayer or when a property becomes occupied or empty, or they may face a £500 penalty.
Scotland and Northern Ireland have their own systems, which this guide does not cover.
Related guides
What is rateable value?: frequently asked questions
What is rateable value in simple terms?
It is the Valuation Office Agency's estimate of the yearly rent a business property could be let for on the open market on a fixed date, using assumptions set in law. For the current list in England and Wales that date is 1 April 2024. Your council uses it to work out your business rates bill.
Who sets my rateable value?
The Valuation Office Agency, part of HMRC, sets rateable values in England and Wales. Your local council does not set it; the council sends the bill, applies the multiplier and gives reliefs.
What date is my rateable value based on?
Values in the rating list that took effect on 1 April 2026 are based on rental values at 1 April 2024, known as the antecedent valuation date. The previous list, from 1 April 2023, was based on 1 April 2021.
Is my rateable value the same as my rent?
No. Your rent may have been agreed at a different date, on different terms or with incentives such as a rent-free period. Rateable value assumes the tenant pays rates, repairs and insurance and that the rent starts on the valuation date. Your actual rent is still useful evidence for the VOA.
Is rateable value what I pay in business rates?
No. Your bill is your rateable value multiplied by a multiplier, minus any reliefs. In England in 2026/27 the multipliers range from 38.2p to 50.8p in the pound, so the bill is usually well below the rateable value.
Does a property in poor repair get a lower rateable value?
Not usually just because it needs repairs. The law assumes the property is in reasonable repair, so disrepair a landlord would normally fix is generally ignored. Repairs that a reasonable landlord would consider uneconomic are excluded from that assumption.
How is rateable value calculated for a property that is never rented?
The VOA still applies the same rental definition, but uses other evidence. Properties run for profit with little rental evidence, such as cinemas, may be valued on the receipts and expenditure method. Properties such as schools and hospitals are usually valued on the contractor's basis, using building costs and a decapitalisation rate set in law.
Does my rateable value change if rents fall?
Not during the life of a rating list. Rental levels are fixed at the valuation date, so market changes after 1 April 2024 generally wait for the next revaluation. The value can change mid-list if the property or certain physical matters around it change, or after a check or challenge.
Where can I find my rateable value?
You can search for it free on GOV.UK using Find a business rates valuation, or see the full detail in your business rates valuation account. It also appears on your council's business rates bill.
Can my rateable value go up after a challenge?
Yes. After a check or challenge the VOA may reduce the value, leave it the same or increase it, for example if it finds the property is larger or better specified than it recorded.
Is rateable value different in Wales?
The way rateable value is set is the same: the VOA values properties in Wales on the same definition and the same 1 April 2024 valuation date. The multipliers and reliefs applied to it in Wales are different from England.
Can I check my rateable value myself?
Yes. You can check and challenge your rateable value free through your business rates valuation account on GOV.UK. A rating surveyor can do it for you if you prefer, with fees agreed directly with them.
Sources
We checked the facts on this page against these official sources on 11 November 2026:
- How your property is valued for business rates (GOV.UK)
- Rating Manual section 2 part 4: Rateable value, AVD, material day and effective date (GOV.UK)
- Business rates: introduction (GOV.UK)
- Estimate your business rates (GOV.UK)
- Find a business rates valuation (GOV.UK)
- Business rates in Wales (Business Wales)