By Isle of Wight Observer
Businesses across the Island are being reminded that significant 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 new values, which determine how much business rates are paid, will take effect from April 1.
The Isle of Wight Council is urging business owners to prepare early by checking the information the VOA holds about their property. Anyone who believes their current rateable value is incorrect has until March 31 to request a review. To do this, businesses will need a Business Rates Valuation Account.
Once registered, businesses can check the factual details held by the VOA, understand how their valuation was calculated, and request corrections if necessary. Guidance on setting up an account and checking valuations is available via iw.observer/business-rates-help.
Only 49 per cent of business rates collected on the Island are retained locally, with the remainder going to central government. The council is therefore encouraging businesses to understand the reliefs and thresholds available to them before pursuing a valuation review. Many smaller premises fall below the Small Business Rates Relief thresholds and may not be liable for rates at all.
Recent changes to the classification of short‑term holiday lets also mean properties must now meet minimum letting requirements to be assessed as non‑domestic. Those that do not may instead fall under council tax. The 2026 revaluation is part of the VOA’s regular three‑year cycle, ensuring rateable values reflect current market conditions. All valuations are based on the April 1, 2024, rental market, and will be used to calculate business rates bills from April 2026. A change in rateable value does not necessarily mean bills will rise or fall by the same amount.
For local queries about billing or reliefs, the council’s business rates team remains available to help