Island Businesses Urged To Prepare For 2026 Business Rates Revaluation

Businesses across the Isle of Wight are being reminded that changes to business rates are on the way, as the Valuation Office Agency (VOA) updates rateable values for all non-domestic properties in England and Wales.

The revised values will come into effect from 1 April 2026 and will be used to calculate how much businesses pay in rates.

Isle of Wight Council is encouraging business owners to prepare early and check the information the VOA currently holds about their property.

If a business believes its existing rateable value is incorrect, it has until 31 March 2026 to ask the VOA to review it.

To do so, owners must have a Business Rates Valuation Account.

Those who have not yet registered are being advised to do so as soon as possible, as verification can take up to 15 working days.

Once registered, businesses can:

• Check the factual details held about their property

• See how their valuation has been calculated

• Request changes if they believe information is inaccurate

Additional context for Island firms

Currently, only 49 per cent of business rates collected on the Isle of Wight are retained locally, with the remaining 51 per cent returned to central government.

The council says it is particularly important for eligible businesses to understand available reliefs and thresholds before pursuing a valuation review unnecessarily.

Many smaller premises fall below the Small Business Rates Relief thresholds and may not need to pay business rates at all.

In such cases, owners may only need to confirm that their property details are correct.

There have also been recent changes affecting short-term holiday lets, sometimes referred to as “Airbnb legislation”.

Properties must now meet minimum letting day thresholds to be assessed as non-domestic holiday accommodation.

Those that do not meet the criteria may instead be treated as domestic dwellings and charged council tax rather than business rates.

What the 2026 revaluation means

Every three years, the VOA reviews more than two million commercial properties in a process known as a revaluation, designed to ensure rateable values reflect current market conditions.

For the 2026 revaluation:

• All values are based on the valuation date of 1 April 2024

• The rateable value reflects the rent a property could have been let for on that date, not necessarily the rent actually paid

• The council will use the updated figures to calculate bills from April 2026

A change in rateable value does not automatically mean a bill will rise or fall by the same percentage.

Businesses can find further guidance and register for a valuation account via the GOV.UK website.

For local queries about billing or reliefs, the Isle of Wight Council’s business rates team is available to help.