Business rates 2026-27: why dental practices are excluded

Business rates 2026-27: why dental practices are excluded from RHL multipliers

Since 1 April 2026, England's business rates system changed. The government replaced the old two-tier structure with up to five multipliers, including a new lower rate for retail, hospitality and leisure (RHL) businesses. However, dental practices are explicitly excluded from this discount. The government's own Business Rates Estimator uses a dental surgery as its worked example to illustrate which properties fail to qualify, making it clear that dentistry does not sit within the qualifying categories.

This exclusion matters because it affects cash flow, practice budgeting, and your competitive position against other service providers. The RHL multiplier cut is designed to ease the burden on shops, restaurants, pubs and leisure venues, but dentists remain taxed at the standard non-domestic rate. Understanding why you are excluded, and what relief options still exist can be helpful for planning your 2026-27 finances.

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Quick Summary

Dental practices cannot use the new lower RHL multipliers from 1 April 2026 because dentistry is classified as a medical and health service, not retail, hospitality or leisure.
The standard non-domestic multiplier for 2026-27 is 48.0p; the RHL multiplier is 43.0p. Dental practices pay the standard rate.
The government explicitly lists dentistry among excluded medical and health services on its official business rates guidance.
NHS dental providers can still apply to NHSBSA for a proportion of business rates relief based on their NHS-to-private treatment ratio.
Councils cannot auto-apply multipliers; eligibility depends on actual property use, not the Valuation Office Agency description alone.
A high-value multiplier of 50.8p for properties with rateable values of £500,000 or above funds the lower RHL multipliers for eligible businesses.

Why dentistry is excluded from the RHL multipliers

The new five-multiplier system divides non-domestic properties by business type and property value. The RHL multiplier is designed for retail, hospitality and leisure businesses. Dentistry sits outside this category because it is classified as a medical and health service. The government's official business rates guidance explicitly states that excluded uses include medical and health services such as medicine, dentistry, audiology and hearing services, cosmetic surgery, physiotherapy, osteopathy, chiropractic services, acupuncture and herbal medicine.

This classification is not new, but it is now more visible because councils must actively assess actual property use rather than relying on the Valuation Office Agency's description alone. A council cannot auto-apply the lower multipliers; the test is on the use of the property, not just the valuation description. This means that even if your property is nominally described as a commercial unit, if it is wholly or mainly used for dental treatment, it does not qualify.

The government's worked example on the Business Rates Estimator underlines this point. It uses Ben's dental surgery with a rateable value of £60,000 in England as a benchmark property that fails the RHL test. This explicit example signals to practice owners and councils alike that dentistry is treated as a health service, not a leisure or hospitality venue.

Dental practices sit alongside other professional and financial services on the exclusion list. Veterinary surgeries, law practices, accountancies and banking facilities are also barred from the discount. The policy reflects a deliberate government choice to protect high-street retail and hospitality from rate shock, while treating healthcare and professional services as separate sectors.

Understanding the 2026-27 rates structure and what you pay

The five-multiplier system replaced the old two-tier approach. The structure works as follows: a standard non-domestic rating multiplier of 48.0p applies to most properties; a small business non-domestic rating multiplier of 43.2p applies to smaller rated properties; an RHL multiplier of 43.0p applies to qualifying retail, hospitality and leisure premises; a small business RHL multiplier of 38.2p applies to smaller qualifying RHL properties; and a high-value multiplier of 50.8p applies to properties with rateable values of £500,000 or above.

Dental practices pay the standard non-domestic multiplier of 48.0p, not the RHL rate of 43.0p. For a practice with a rateable value of £60,000, the difference is significant. Using the 2026-27 rates, that practice would pay 48.0p per pound of rateable value (£28,800 per annum) rather than 43.0p if it qualified (£25,800 per annum). The gap is £3,000 annually. For larger practices with higher rateable values, the impact scales accordingly.

The government funded the RHL and small business RHL discounts by introducing a high-value multiplier. Revenue from properties valued at £500,000 or above funds the lower rates for eligible smaller premises. This is a deliberate rebalancing: high-street retail and hospitality get relief, funded by heavier taxation on larger commercial property. Healthcare providers, including dental practices, do not benefit from this redistribution.

Why this matters

Your 2026-27 business rates will be calculated at the standard multiplier (48.0p), not the RHL rate (43.0p). Check your valuation notice and council communication now to confirm the rate assigned to your property.
If your practice is multi-use (for example, if you rent desk space to a hairdresser or beauty therapist), the multiplier depends on what the property is mainly used for. If it is wholly or mainly dental, you cannot claim the RHL rate even if other services operate there.
Larger practices with rateable values above £500,000 will face the new high-value multiplier of 50.8p, adding additional cost on top of the standard 48.0p rate.

A dental surgery reception desk with a practice manager reviewing business rates documentation.

What relief options remain for dental practices

Although dental practices cannot claim the RHL multiplier, relief options still exist. The main route is through the NHSBSA (NHS Business Services Authority) for practices that provide NHS treatment. A practice can claim a proportion of the business rates in relation to their ratio of NHS to private treatments provided. This relief is not automatic; it is based on the actual treatment mix and requires documentation of your NHS and private activity.

If your practice receives an NHS contract and treats both NHS and private patients, the NHSBSA can reimburse you for a share of your business rates that corresponds to the proportion of NHS treatment you deliver. For example, if you treat 60% NHS and 40% private patients, you may recover approximately 60% of your business rates bill. This relief has applied since before 2026, but it remains relevant as the new multiplier system begins.

The NHSBSA has issued provider and commissioner bulletins signalling the 2026-27 applications window. If you hold an NHS contract, contact your primary care commissioning team and the NHSBSA early to confirm how your relief claim will be processed under the new rates structure. The process is separate from the multiplier system; it is a relief you apply for based on your NHS income, not a multiplier eligibility test.

Private-only dental practices have no specific rate relief route. However, all businesses can appeal their rateable value if they believe it is set incorrectly, and you can challenge a council's decision if it assigns the wrong multiplier to your property. These are separate procedures from the relief claim, but they may be worth exploring if you believe your valuation or classification is inaccurate.

The Bottom Line

The new five-multiplier system from 1 April 2026 delivered a significant cut for eligible retail, hospitality and leisure businesses, but dental practices were excluded. You will continue to pay the standard non-domestic multiplier of 48.0p per pound of rateable value, leaving your rates bill higher than those of businesses that qualify for the 43.0p RHL rate.

If your practice is NHS-funded, contact the NHSBSA as soon as possible to confirm your relief entitlement under the new structure. Private practices should review their rateable value and ensure their property classification is correct.

Disclaimer: This blog is a general overview and should not be construed as professional legal, financial or medical advice.

Frequently Asked Questions

Q1: Can my dental practice use the new lower RHL multiplier from April 2026?

No. Dentistry is classified as a medical and health service and is explicitly excluded from the RHL multipliers. You will pay the standard non-domestic multiplier of 48.0p per pound of rateable value. The RHL multiplier (43.0p) applies only to qualifying retail, hospitality and leisure businesses.

Q2: How much extra will my business rates cost under the new system?

The difference depends on your rateable value. For a practice with a rateable value of £60,000, paying the standard multiplier (48.0p) instead of the RHL rate (43.0p) costs roughly £3,000 more per year. Larger practices pay proportionally more. Use the Business Rates Estimator on gov.uk to calculate your exact position.

Q3: Can I appeal if my practice is wrongly classified as non-RHL?

You can challenge your multiplier if you believe your property's actual use is misclassified. The test is on the use of the property, not the valuation description alone. If you believe the council has assigned the wrong multiplier, contact your local authority business rates team to request a review.

Q4: Do NHS dental practices get any relief from the new rates?

Yes, if you provide NHS treatment. You can claim business rates relief from NHSBSA based on your NHS-to-private patient ratio. For example, if 60% of your activity is NHS, you may recover approximately 60% of your rates. Contact NHSBSA to submit your claim.

Q5: Who decided dentistry is excluded from the RHL multiplier?

The government classified dentistry as a medical and health service in the business rates regulations. This exclusion is deliberate: the RHL multiplier is designed to support retail shops, restaurants, pubs and leisure venues, not healthcare providers. The Chancellor announced the policy at the Budget on 26 November 2025.

Information Sources

This article was researched using authoritative UK sources. Last updated: 2026-09-10.

Business rates 2026-27: why dental practices are excluded from RHL multipliers