Railway Arch Business Rates Explained
How business rates work for railway arches. Understand Rateable Values, 2026/27 multipliers, SBRR relief thresholds, and how to appeal. Save thousands on your rates bill.
Business rates are one of the biggest costs of running a business in a railway arch — typically adding 30–40% on top of your base rent. Understanding how they work, what relief you qualify for, and how to challenge an incorrect assessment can save you thousands per year.
Use our free Business Rates Estimator to calculate your liability instantly, or read on for the complete guide.
How Business Rates Work
Every non-domestic property in England and Wales has a Rateable Value (RV) set by the Valuation Office Agency (VOA). The RV is the VOA's estimate of the annual rental value of your property on a specific valuation date.
For the 2023 revaluation (which sets rates through to 2026), the valuation date is 1 April 2021. This means your RV reflects what the open-market rent for your arch would have been on that date.
Your annual business rates bill is calculated as:
Annual Rates = Rateable Value × Multiplier
The government sets the multiplier each year. There are two multipliers: a lower one for Retail, Hospitality & Leisure (RHL) businesses and a standard one for everyone else. The RHL multiplier recognises the higher burden on customer-facing businesses.
2026/27 Business Rates Multipliers
| Category | RV below £51k | RV £51k+ |
|---|---|---|
| Retail, Hospitality & Leisure | 0.382p | 0.43p |
| Standard (all other) | 0.432p | 0.48p |
RHL-eligible businesses include: breweries, restaurants, cafes, pubs, gyms, retail shops, and leisure venues. Industrial workshops and offices use the standard multiplier.
The £51k threshold matters: properties with RV at or above this level face a significantly higher multiplier. Most railway arches fall below this threshold.
Small Business Rates Relief (SBRR)
SBRR is the most valuable relief available to railway arch tenants. If your arch is your only business premises, you could pay zero business rates.
SBRR Thresholds:
- RV up to £12,000: 100% relief — you pay no business rates
- RV £12,000 to £15,000: Tapered relief — decreasing from 100% to 0%
- RV above £15,000: No SBRR available
How to Apply for SBRR
SBRR is not automatic — you must apply to your local council. The process is straightforward: contact your council's business rates department and confirm that the property is your sole or main business premises. Relief is usually backdated to the start of the rates year if you apply mid-year.
Eligibility Rules
- You must occupy only one business premises
- If you use a second property with RV under £2,900, you may still qualify (based on main property RV)
- Charities and non-profits have separate relief schemes
Checking and Appealing Your Rateable Value
Many railway arch tenants pay more than they should because they haven't checked or challenged their Rateable Value. The VOA's assessment may not reflect your arch's actual condition, size, or rental market.
Step 1: Check Your RV
Search the VOA website to find your property's current Rateable Value. Check that the details (floor area, description, use) are correct. Errors here can mean you're over-assessed.
Step 2: Challenge if Incorrect
If you believe your RV is too high, use the VOA's Check, Challenge, Appeal (CCA) process:
- Check: Register on the VOA portal and verify your property details. If factual details are wrong (e.g. floor area), correct them here.
- Challenge: Formally propose a change to the RV, explaining why you believe it should be lower. Provide evidence such as comparable rents, condition issues, or access limitations.
- Appeal: If the Challenge is rejected, take your case to the Valuation Tribunal. This is free, but consider professional advice for larger claims.
Common Grounds for Challenge
- Floor area measured incorrectly
- Damp or structural issues reducing usable space
- Limited access (no vehicle access, narrow entrance)
- Comparable arches nearby with lower RVs
- Material change in circumstances (e.g. road works)