Business Rates Information Letter (3/2025): Confirmation of decapitalisation rates
Published 16 June 2025
Applies to England
漏 Crown copyright 2025
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To:听Chief Finance Officers of English Billing Authorities - For the attention of the Business Rates section
From:听Non-Domestic Rates Team, LGF - Local Taxation, Ministry of Housing, Communities and Local Government ([email protected])
Date: 13 June 2025
For the attention of the business rates section
Dear Chief Finance Officer
Business Rates Information Letter (3/2025): Confirmation of decapitalisation rates
This is the third business rates information letter to be issued by the Ministry of Housing, Communities and Local Government in 2025. Previous letters are available online at:听
/government/collections/business-rates-information-letters听
or for archived letters:听
.听
This letter covers:鈥��
- Business rates revaluation 2026: Decapitalisation rates
Business rates revaluation 2026: Decapitalisation rates
1. Decapitalisation rates are part of the rating valuations for certain specialist properties for which rental data is not available, and which are instead valued based on construction costs 鈥� known as the contractor鈥檚 basis of valuation. Unlike other aspects of valuations which are done independently by the Valuation Office Agency (VOA), these decapitalisation rates are set by Ministers.
2. 皇冠体育app current decapitalisation rates were set in 2016 for all future rating lists by at 2.6% for education, healthcare and defence properties and 4.4% for other properties valued on the contractor鈥檚 basis. 皇冠体育apprefore, for the 2026 revaluation the decapitalisation rates will remain at the level set in 2016 of 2.6% and 4.4%.