London Business Rates 2026: Early Preview for HQs

If your London HQ is waiting for April to worry about business rates, expect a surprise and not the cheerful kind. The 2026 revaluation resets the board for every office, shop and lab in the capital. It is driven by rental values from a fixed point in time, not what your landlord is asking today, and it lands whether you moved or not.

This early preview explains what is changing, the London-specific extras that creep onto big-ticket bills, and how to model your exposure before draft numbers go public. If a change of space looks smarter than a bigger cheque to the council, you can benchmark options across the city on the same day through our page for office space in London.

Key takeaways

• The London business rates 2026 preview uses rental values from 1 April 2024.
• Draft 2026 rateable values should appear in autumn 2025.
• London HQs over £75,000 RV also face the Crossrail supplement.
• Transitional relief can cap sharp increases after revaluation.
• Model scenarios now and line up evidence for Check, Challenge, Appeal.
• Managed or serviced deals can bundle rates for budget certainty.

What changes in April 2026

Every three years, the government updates business rates so bills reflect a market snapshot rather than stale history. The next revaluation takes effect on 1 April 2026, and it is based on rental evidence at the Antecedent Valuation Date of 1 April 2024, as set out in the government's business rates forward look. In short, your 2026 liability mirrors where London office rents stood on that date, not a deal you might strike next quarter.

The Valuation Office Agency has confirmed the same anchor date and timeline in its guidance, which explains how values are compiled and when the next list applies. See the VOA's overview of Revaluation 2026 for context on evidence gathering and timing in England and Wales on the official VOA blog.

The valuation date that drives your 2026 bill

The system uses a single past date to create consistency. For 2026, that date is 1 April 2024. If your submarket saw rents rise to that point, expect upward pressure on rateable value. If it softened, you may see a stabilising effect. The VOA notes that changes in RVs reflect the property market between revaluations, which is why the 2026 list is grounded in 1 April 2024 evidence, as highlighted in this how we value explainer.

Draft list and when numbers land

You do not have to wait until April 2026 to get a steer. The draft rating list, with official statistics on changes in rateable values, is expected in autumn 2025. That is when you can compare your property's new RV with today's and refine budgets, which aligns with the timetable in the government's forward look.

The London specifics HQs cannot ignore

London HQs have two moving parts to watch. First, the revaluation resets your core rateable value. Second, the capital adds a Business Rate Supplement for Crossrail on larger properties. The combination can create a noticeable step up, especially in prime districts.

Location remains a lever. Moving a few streets or one Tube stop can change RV bands without hurting access to clients or talent. For a quick sense of alternatives, scan current stock in the City of London or options around Canary Wharf to see how space, spec and amenities trade off by building and block.

Crossrail Business Rate Supplement and thresholds

Since 2010, London has added a Crossrail Business Rate Supplement. From April 2023, the threshold rose to RV above £75,000, and the multiplier sits at 2p in the pound. City Hall confirms these settings through at least 31 March 2026 on its page paying for Crossrail and the 2025-26 mayoral decision. The annual 2025-26 ratepayer notice also reiterates the £75,000 threshold and 2p rate, and notes there is no transitional relief for BRS itself in that year, as set out in the Crossrail BRS communication.

West End vs City vs Canary Wharf: who is exposed

Prime retail and certain West End frontages have seen sharper movements in past cycles, while the City and Canary Wharf track Grade A office demand and incentives. That patchwork matters if you are weighing a shift from a heritage West End HQ to a modern tower with stronger deal terms in E14. Use this period to compare alternatives on a like-for-like basis, including the supplemental Crossrail charge.

For a practical view of what you could get for your budget in central districts, browse our live London office space inventory to benchmark size, spec and transport against your current lease.

Multipliers, reliefs and the likely caps on increases

Two ingredients shape the bill that actually lands on your desk. The Treasury sets annual multipliers that turn RV into a rates bill, and the government may run transitional relief to limit how fast big increases feed through after a revaluation. The forward look states that multipliers for 2026-27 will be set at Budget 2025 and that support will be provided for those seeing large increases, which is noted in the government guidance.

Transitional schemes in recent cycles have capped increases by property size band and, in 2023, removed downward caps so reductions flowed immediately. You can see the current scheme outlined on the official page for transitional relief, which councils also mirror in their billing guidance.

Transitional relief, who gets the cap and who does not

If a scheme similar to 2023 is adopted, large properties, often defined as those above a higher RV band, face higher increase caps than small premises. That matters for London HQs, which typically sit in the large band. It also means the headline RV change is only part of the first-year story if caps slow the step up. Council guidance from recent years shows caps taper over three years, which helps with cashflow planning, as in this example explainer.

Small vs standard multiplier and policy debate

England runs a small business multiplier for lower-value properties and a standard multiplier for the rest. There has also been active discussion about adjusting the burden between smaller premises and very large ones. Treat those ideas as background until firm numbers arrive at Budget 2025.

Practical steps: model, budget, and challenge

Preparing now saves you from panic budgets later. Start by pulling your current RV, adding scenario bands for potential percentage changes, and applying illustrative multipliers. Then layer in the Crossrail supplement if your RV sits above the £75,000 threshold. This gives you a range for April 2026 cash impact with and without transitional caps.

If you are weighing space strategy as well as budget, sense check on what your cost could look like under a different model. Our team can show options where rates are bundled into a single monthly fee, so you trade variability for certainty. Begin with our guide to serviced, managed and leased offices and speak to an advisor to map costs to your headcount plan.

Build a quick forecast from today's RV

1. Take your current RV from your bill or online record.
2. Apply a scenario range, for example, minus 5% to plus 15%, reflecting your submarket trend into April 2024.
3. Multiply by an indicative standard multiplier band. Until Budget 2025 sets the exact figure, use a placeholder range to test sensitivity.
4. Add 2p per pound for the Crossrail supplement if your RV is above £75,000.
5. Overlay a transitional cap path based on the 2023 scheme structure to create Year 1 to Year 3 cash flows.

This approach mirrors how councils explain transitional maths and will get you close enough for Q4 budget setting, even before draft values appear in autumn.

Check, Challenge, Appeal: realistic timelines

Once the draft list lands, verify your entry and gather evidence. The formal Check, Challenge, Appeal process has defined stages and can take months, especially for complex HQs. The key is to prepare your rental evidence and floor plan accuracy early, then submit promptly after April if needed. The autumn draft is your early warning to start assembling a valuation case rather than scrambling in the new financial year, as reinforced in the government's forward look.

Strategy for London HQs: lease, managed or serviced

Pure leased space gives maximum control but leaves you fully exposed to rate volatility. Managed or serviced models wrap business rates, utilities, cleaning, furniture and FM into a single monthly fee, which can smooth cashflow and offload admin. For fast-growing teams or those who do not want to build risk, that simplicity is hard to beat. Our office space calculator shows what tends to be included, so you can compare like-for-like.

When you compare models, look at headline rent, service charge, utilities, furniture, dilapidations risk, and of course business rates. Treat the total cost of occupation as the metric that matters, not just the rent.

When bundling rates into a serviced or managed deal helps

Bundling is useful when you need headcount agility, board-level budget certainty, or you expect to move within the three-year rating cycle. It also helps if you want to sidestep the appeals process because the operator carries that burden. If you are exploring this route, shortlist options in the City of London for client proximity or test value in Canary Wharf offices, where new towers and transport give strong amenity density.

Location pivots that cut liability without hurting access

Sometimes moving a few blocks does the job. If your HQ is in a street with exceptional retail or tourist footfall, shifting to a nearby commercial block can lower RV for the same desk count. Equally, trading a West End address for E1 or E14 can deliver more space for a similar total occupation cost, even after the supplement. Use our London office space search to compare live options by transport node, building age and spec before you renew.

Action checklist for CFOs and ops leaders

Set the pace now so April feels routine, not chaotic. The steps below create a clean line from early modelling to decisions on space and appeals.

• Pull current RVs across your London estate and note which ones exceed £75,000.
• Build a 2026-27 to 2028-29 cash forecast using multiplier ranges and a transitional path.
• Identify at-risk sites and log the evidence you would use in a Challenge.
• Run a model review for each team: lease vs managed vs serviced.
• Book shortlists in two contrasting submarkets, such as Westminster and Canary Wharf, to benchmark space, spec and implied RV. Explore Westminster offices and Canary Wharf stock to start the comparison.

Conclusion

You cannot control the valuation date, but you can control your preparation. With the draft list due in autumn and the 2026 revaluation based on 1 April 2024 market levels, London HQs that model early and line up property strategy choices will sail through April while everyone else scrambles. If you want options that de-risk the rates line, compare like-for-like space across the capital on our London office platform.