Businesses across the Island 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.
These updated values, which help determine how much business rates you pay, will come into effect from 1st April 2026.
The Isle of Wight Council is encouraging all business owners to make sure they are prepared well ahead of time and to check the information the VOA holds about their property.
Don’t miss the deadline
If you think your current rateable value is not correct, you have until 31st March 2026 to ask the VOA to review it.
To do this, you will need a Business Rates Valuation Account.
If you don’t already have one, it’s a good idea to register now, as the verification process can take up to 15 working days.
Once set up, your account will allow you to:
- check the factual details the VOA holds about your property;
- understand how your valuation was worked out;
- request changes if you believe something is wrong.
More information on setting up an account and checking your valuation is available on the Government website.
Additional context for Island businesses
Only 49 per cent of the business rates collected on the Isle of Wight are retained locally, with the remaining 51 per cent returned to central government.
This means it is particularly important for eligible businesses to understand the reliefs and thresholds available to them so that they do not spend time pursuing a valuation review unnecessarily.
Business rates are generally only payable if your property’s rateable value is above the Small Business Rates Relief thresholds, which currently exempt many smaller premises.
Businesses whose rateable values fall below these thresholds may not be liable for rates and therefore may not need to take any action other than checking the details held about their property.
“Airbnb legislation”
In addition, recent changes affecting the classification of short-term rented accommodation — often referred to as the “Airbnb legislation” — mean that properties must now meet minimum numbers of days actually let per year to be assessed as non‑domestic holiday lets.
Properties that do not meet these criteria may instead be treated as domestic dwellings and subject to council tax rather than business rates.
What the 2026 revaluation means
Every three years, the VOA reviews the rateable values of more than two million commercial properties. This process, known as a revaluation, aims to keep business rates fair and up to date with current market conditions.
For the 2026 revaluation:
- all rateable values are based on the valuation date of 1st April 2024;
- your rateable value reflects the rent your property could have been let for, not what you actually pay;
- the Isle of Wight Council will use these updated values to calculate your business rates bill from April 2026.
It’s important to remember that a change in your rateable value does not always mean your bill will rise or fall by the same amount.
Business owners can find clear guidance, videos and tools to help understand the revaluation process on the government website.
For local queries relating to billing or reliefs, the council’s business rates team is available to help.
News shared by Isle of Wight council press office, in their own words. Ed
