Business rates for 2026 to 2027
Non-domestic properties tax
National non-domestic rates or business rates, as they are more commonly known, are a tax on non-domestic properties.
How is your rates bill calculated?
Your gross annual rates bill is calculated by multiplying the rateable value of the property by the appropriate Government set multiplier. For 2026 to 2027, there will be 5 multipliers instead of 2. This includes 2 new multipliers for Retail, Hospitality and Leisure (RHL) properties. See below table which sets this out.
| Multiplier | Rateable Value (RV) | Multiplier Rate |
|---|---|---|
| Small Business Multiplier | RV below £51,000 | 43.2 pence |
| Small Business RHL Multiplier | RV below £51,000 | 38.2 pence |
| Standard Multiplier | RV between £51,000 and £499,999 | 48.0 pence |
| Standard RHL Multiplier | RV between £51,000 and £499,999 | 43.0 pence |
| High-Value Multiplier | RV above £500,000 | 50.8 pence |
Your net rates bill may differ from the gross bill if you qualify for a relief, exemption, transitional relief, or your property is subject to the Business Rates Supplement (BRS).
For more information on the BRS visit the Crossrail Business Rate Supplement webpage.
Retail Discount
From 1 April 2026, the retail discount scheme will be replaced by the above RHL multipliers. However, you can still apply for the Retail Discount for the period prior to 31 March 2026. You will find the details and application on our webpage Retail discount | Royal Borough of Kensington and Chelsea.
Revaluation
There was a revaluation, effective from 1 April 2026, which means the rateable values of all commercial properties in England and Wales will have been updated. The 2026 rateable value will be based on the amount of rent your property could have been let for around 1 April 2024.
Transitional relief
Transitional relief limits how much your bill will go up as a result of the revaluation. This means if your business is eligible for transitional relief, the increases to the business rates bill will be phased in gradually.
This table shows the percentage increases applied to phase in your bill over the next three years:
| Rateable Value | 2026–2027 Percentage Cap | 2027–2028 Percentage Cap | 2028–2029 Percentage Cap |
|---|---|---|---|
| Up to £28,000 | 5% | 10% plus inflation | 25% plus inflation |
| £28,001 to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
How can I appeal against the rateable value?
The Valuation Office Agency (VOA) values all business properties for business rates. The valuation is based on information the VOA holds about your property. You can view and update this information at gov.uk/voa/valuation.
You can contact the VOA at gov.uk/contact-voa. If you are unable to use the online service you can also contact the VOA, telephone 03000 501 501.
Supporting Small Business Relief Scheme (SSBR) 2026-27 to 2028-29
From 1 April 2026, Supporting Small Business Relief will be available to help those ratepayers who at the revaluation have seen large increases in their bills as a result of losing some or all of their:
- Small Business Rate Relief
- 40% Retail Hospitality and Leisure Relief, and/or
- 2023 Supporting Small Business Relief.
The increase in their bills will be capped at the higher of £800 or the relevant transitional relief cap. This support is applied before changes in other reliefs and supplements.
Extension of the Small Business Rate Relief grace period from one to three years
Businesses will now keep their Small Business Rate Relief (SBRR) on their first property for three years after they take on a second property, instead of one year.
Relief for eligible Electric Charging Points and Electric Vehicle only forecourts (EVCP Relief)
There will be a ten year 100% business rate relief for EVCP’s that are separately assessed by the Valuation Office Agency (VOA) to ensure they face no business rate liability.
Direct Debit
If you would like to pay by Direct Debit, please telephone the Rates Office on 020 7361 2828 or download the form from the Business Rates webpage.
Business rates advice
The Council can grant hardship relief to a ratepayer if paying all or part of the bill would cause hardship. Any ratepayer experiencing hardship can apply but relief is normally only granted in exceptional circumstances.
For details on how to apply please contact the Rates Office below or visit the Business Rates webpage.
Contact information
Further information about rates can be found on the explanatory notes accompanying your bill, or by contacting the Rates Office:
- email: [email protected]
- telephone: 020 7361 2828
- post: The Royal Borough of Kensington and Chelsea, PO Box 10413, London W8 7WT
- visit by appointment only: The Town Hall, Hornton Street, London W8 7NX, Monday to Friday, 9am to 5pm
Business information, news, and support
The Business and self-employed - GOV.UK (www.gov.uk) website provides impartial advice and support to help you sustain your business. At a local level, the Portobello Business Centre offers free advice and confidential guidance from qualified experts, for further details please visit Portobello Business Centre.
For updates on Council-backed initiatives that support local businesses please visit the Business and Enterprise webpages.
Business Matters newsletter
Subscribe to the Council’s fortnightly Business Matters newsletter to get the latest business news and updates in the borough straight to your inbox.
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Supporting growth
- all businesses in the borough can be listed on the 'It's Local' Business Directory which connects businesses with local customers free of charge. Register your business for free at www.itslocalrbkc.co.uk.
- if your business is in the construction sector, consider participating with our supply chain programme to access opportunities from development sites in the borough.