Hiring out space for events can make that space liable for business rates in England, even when it is part of your home or farm. The Valuation Office (VO), part of HMRC since the Valuation Office Agency was merged into it on 1 April 2026, says homes used as function venues will "invariably" be rated as composite properties: council tax on the home, business rates on the event space. It ignores the event use only in "very exceptional circumstances", such as a small venue with no adaptations, probably 5 or fewer single-day functions a year, all catering brought in and no marquees.
A rateable value does not always mean a bill. In England, if your venue's rateable value is £12,000 or less and it is the only business property you use, small business rate relief takes your 2026/27 business rates bill to nil. Above that, the 2026/27 multipliers are 43.2p in the pound below £51,000 rateable value and 48p from £51,000 to £499,999, or 38.2p and 43p for qualifying retail, hospitality and leisure properties.
This guide covers England, with Wales, Scotland and Northern Ireland near the end. All figures are for the 2026/27 rates year (1 April 2026 to 31 March 2027) as of 26 October 2026. The UK Budget on 28 October 2026 may change them for 2027/28.
The 2026/27 numbers at a glance
| Item (England, 2026/27) | Figure |
|---|---|
| Small business multiplier (rateable value below £51,000) | 43.2p per £1 of rateable value |
| Standard multiplier (£51,000 to £499,999) | 48p |
| Retail, hospitality and leisure (RHL) small multiplier (below £51,000) | 38.2p |
| RHL standard multiplier (£51,000 to £499,999) | 43p |
| High-value multiplier (£500,000 or more) | 50.8p |
| Small business rate relief: 100% off | Rateable value £12,000 or less |
| Small business rate relief: tapered | £12,001 to £14,999 |
| Pubs and live music venues relief | 15% off the 2026/27 bill |
| Charitable rate relief | Up to 80% off |
Your bill is your rateable value multiplied by the multiplier, minus any relief. The VO sets the rateable value. Your local council sends the bill and decides most reliefs. Below £51,000 you get the lower small business multiplier without claiming small business rate relief. The City of London uses different multipliers.
Do I pay business rates if I host events at my home?
Possibly, and the VO's starting point is that you do. GOV.UK says you may need to pay business rates as well as council tax if:
- your property is part business and part domestic;
- you sell goods or services to people who visit your property;
- you employ other people to work at your property; or
- you have changed your home for your business.
Hiring out your garden, barn or rooms for a party or wedding is selling a service to visitors.
The law is in the Local Government Finance Act 1988. A property is domestic if it is "used wholly for the purposes of living accommodation" (s.66(1)). A hereditament (the legal unit that gets rated) is composite "if part only of it consists of domestic property" (s.64(9)), and a composite hereditament counts as non-domestic (s.64(8)), so it can go in the business rates list. In practice you keep paying council tax on the home and may also get a business rates bill for the event space.
The VO's rating manual for civil ceremony, wedding and function venues (updated 21 September 2026) says properties with living accommodation that are used as venues are rarely wholly domestic and "will invariably be rateable as composite hereditaments" (para 5.2). The hereditament "will be a composite one unless the circumstances of occupation suggest that it is wholly non-domestic" (para 5.6). Self-catering cottages used together with a wedding venue fall under the normal self-catering rules in s.66 of the 1988 Act (para 5.8).
Those self-catering rules changed in England on 24 July 2026 (SI 2026/692). A cottage you intend to make available for short lets for 140 days or more is now non-domestic if it is occupied together with non-domestic land, such as your event space, as part of the same hereditament. In that case it no longer has to meet the previous-year tests (available for 140 days and actually let for 70 days).
When can event use be ignored as "de minimis"?
De minimis means "too small to count". The VO's manual (para 4.11.2) says event use of a home may be treated as de minimis, with no entry in the rating list, only in "very exceptional circumstances". Its example has all of these features:
- A relatively small venue with no adaptations for wedding purposes.
- Infrequent use: "probably 5 or less single day weddings or functions a year".
- The licensed rooms are regularly used by the family between weddings.
- All the catering is brought in, and the number of guests at each wedding is restricted.
- No marquees are permitted or used.
Treat this as an example, not a safe limit. The VO decides each case on its facts, weighing "the extent, frequency and intensity of the non-domestic use" and any changes made for it (para 5.5). Six small parties a year do not automatically make you liable, and four do not automatically make you exempt.
Does a civil wedding licence make my property rateable?
It is strong evidence that it is. The VO's manual says a civil ceremony licence "would be firm evidence of non-domestic use" and that the use is "unlikely in most circumstances to be de minimis" (para 5.5). It also says corporate use is likely to be more than de minimis in most situations. If you plan to become approved premises for civil weddings, include a business rates assessment in your costs.
Is a farm barn or field still exempt if I host events?
Farm land and farm buildings are exempt from business rates under Schedule 5 to the Local Government Finance Act 1988, but only while they are used for farming:
- a hereditament is exempt "to the extent that it consists of" agricultural land or agricultural buildings (para 1);
- agricultural land includes "land used as arable, meadow or pasture ground only" (para 2(1)(a));
- a building is agricultural if it is not a dwelling, is occupied with agricultural land "and is used solely in connection with agricultural operations" (para 3(a)).
The key word is "solely". A barn converted into an event space, with toilets, lighting and tables, is no longer used solely for farming, so it loses the exemption.
Fields are judged the same way. Agricultural land does not include land used "mainly or exclusively for purposes of sport or recreation" (para 2(2)(d)). On festival sites, the VO's farm diversification guidance (updated 21 September 2026) says a one-off use is unlikely to lead to an assessment, and "it is generally the repeated and/or substantial use which is likely to mean that a site becomes rateable" (para 1.2). On maize mazes, it says that where the same or different fields are used year after year for non-agricultural purposes, a partially exempt hereditament stays in the list until that use stops permanently (para 5.3).
Planning is a separate question: a use that needs no planning permission can still be rateable. For the planning side, see the 28-day rule for events on your land.
How does the VO value an event venue?
For venues used mainly for functions, weddings and civil ceremonies, the VO's 2026 practice note says valuation "will usually be based on a percentage of gross receipts from all sources excluding VAT" (para 4.1). The percentage depends on the type of venue and how much service you provide:
| Type of venue (Rating Manual) | Share of gross receipts, excluding VAT |
|---|---|
| Historic or large period house with full catering and drinks service (para 4.3) | 4% to 10% (lower end for Grade I or II* listed buildings with high running costs) |
| Venue only: little more than the space (para 4.4) | 8% to 15% (higher where use is high and service is low) |
| Converted barn or similar, few services beyond hire (para 4.5) | Range may widen to 20%, more where use is intense |
| Field, gardens or terrace with little permanent structure (para 4.6) | At least 20% (lower where marquee hire income is passed to a third party) |
For farm parks and similar farm attractions, the VO's farm guidance gives 6% to 9% of gross receipts for most premises (para 3.4.3). For commercial attractions it prefers a full receipts and expenditure valuation when full accounts are available (paras 3.2.3 and 3.2.6).
An illustrative example with round numbers: a converted barn hired out with little service, taking £60,000 a year excluding VAT, valued at 15% of receipts, would have a rateable value of about £9,000. At 20% it would be about £12,000. The real figure is the VO's decision; this only shows the scale.
How do I check my rateable value?
The 2026 rating list values property at its open market rental value on 1 April 2024. On the GOV.UK business rates search you can look up any property's rateable value in England or Wales, see similar properties and see how a value was calculated. If you think your value is wrong, challenge it through your business rates valuation account.
Will small business rate relief cover my venue?
The small business rate relief (SBRR) rules for England in 2026/27:
- Rateable value £12,000 or less: 100% relief, if this is the only property your business uses.
- £12,001 to £14,999: the relief tapers from 100% down to 0%. GOV.UK's examples: £13,500 gets 50% off, and £14,000 gets 33% off.
- £15,000 or more: no SBRR, but you still use the 43.2p small multiplier if your value is below £51,000.
If you take on a second property, you keep relief on your main property for 12 months if you got the second property before 27 November 2025, or for 36 months if you got it on or after that date. After that, you keep relief only if none of your other properties has a rateable value above £2,899 and the total rateable value of all your properties is under £20,000 (£28,000 in London).
SBRR cannot be combined with charitable rate relief; the council decides which applies. Tell the council if you get another property, make changes that increase the value, or the nature of your business changes. A new rate usually applies from the day the circumstances changed.
If your bill rose because of the 2026 revaluation and you lost some or all of SBRR or other reliefs, supporting small business relief limits the increase on your 2025/26 bill to the greater of £800 or a percentage cap: 5% up to £20,000 rateable value (£28,000 in London), 15% up to £100,000 and 30% above that. The council adjusts the bill if you are eligible.
Does my venue get the lower retail, hospitality and leisure multiplier?
Since 1 April 2026, qualifying retail, hospitality and leisure (RHL) properties pay lower multipliers: 38.2p below £51,000 and 43p from £51,000 to £499,999. On a £36,000 rateable value that is £1,800 a year less.
The legal test is in the Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025 (SI 2025/1093), which apply in England only. The property must be used "wholly or mainly" for a qualifying purpose (reg. 2). For venues, the relevant purposes are:
- Public halls and venues for hire (Sch. 2, para 9): "Public halls and venues for hire for events or activities, where the events and activities are principally for the benefit of visiting members of the public", plus premises used wholly or mainly for meetings by voluntary associations. GOV.UK guidance lists "Public halls/village halls" as in scope.
- Food or drink for consumption by visiting members of the public (reg. 3(1)(b)), which covers pubs and restaurants.
- Hotels, boarding houses and guest houses used by members of the public (reg. 3(1)(c)).
Two exclusions matter:
- Conference centres. Schedule 1, para 4(f) excludes use "as premises for the hosting of meetings or conferences", so a space used mainly for business meetings is unlikely to qualify.
- Business film and recording studios (GOV.UK guidance, para 26).
The open question for private-hire venues. A barn or house hired by one family for a wedding, with only invited guests, may or may not be "principally for the benefit of visiting members of the public". Regulation 3(3) says it does not matter that access is limited to people who have paid, hold tickets or passes, or are members or guests of a club. It does not mention private invitations, and no primary source we found settles this. Your local council decides. GOV.UK guidance says the RHL multipliers are not a discretionary relief: only properties that meet the legal definition qualify (paras 7 and 8).
Some councils apply the multiplier from their own records. Stafford Borough Council, for example, says the RHL multiplier will be shown on your bill if you qualify, and asks you to use its online form if you think the multiplier on your 2026/27 bill is wrong.
Worked examples for 2026/27
These use round, illustrative numbers and ignore supporting small business relief and transitional arrangements.
| Example | Rateable value | Multiplier | Bill before relief | Relief | Bill for 2026/27 |
|---|---|---|---|---|---|
| A. Small barn, only business property | £9,000 | 43.2p | £3,888 | SBRR 100% | £0 |
| B. Larger barn, only business property | £14,000 | 43.2p | £6,048 | SBRR, about a third | about £4,030 |
| C. Busy barn venue, not RHL | £36,000 | 43.2p | £15,552 | None | £15,552 |
| C. Same venue, if it qualifies as RHL | £36,000 | 38.2p | £13,752 | None | £13,752 |
| D. Period house venue, not RHL | £60,000 | 48p | £28,800 | None | £28,800 |
| D. Same house, if it qualifies as RHL | £60,000 | 43p | £25,800 | None | £25,800 |
For income tax on your hire income, see tax on venue hire income and the £1,000 property allowance.
I run a pub with a function room. What relief do I get?
Pubs and live music venues in England get 15% off their 2026/27 business rates bill, with no cap on the amount. After that, GOV.UK says bills will not rise by more than inflation from 1 April 2027 to 31 March 2029.
To count as a pub, the property must:
- be open to the public;
- allow free entry, other than when occasional entertainment is provided;
- allow drinking without requiring food to be bought; and
- allow drinks to be bought at a bar.
The relief is not available if the property is mainly used as a nightclub or a theatre. The government's announcement of 27 January 2026 adds that restaurants, cafes, snack bars, hotels, guest houses, boarding houses, sporting venues, festival sites, theatres, concert halls, cinemas, museums, exhibition halls and casinos do not count as pubs. It says this list "is not intended to be exhaustive" and that councils decide unclear cases. If your function room is billed as part of a pub that meets these conditions, the relief applies to that bill.
On 23 July 2026 the government announced a further 20% cut in business rates bills for pubs, social clubs and live music venues in England from April 2027, with the very largest live music venues excluded. It said the details would come at the Budget.
Are church halls and village halls exempt?
Church halls. Schedule 5, para 11 of the 1988 Act exempts places of public religious worship and "a church hall, chapel hall or similar building" used in connection with them "for the purposes of the organisation responsible for the conduct of public religious worship in that place". GOV.UK lists "buildings registered for public religious worship or church halls" as exempt buildings.
Village halls. There is no general exemption, but:
- "Public halls/village halls" are named as in scope for the lower RHL multipliers, subject to the legal test above;
- if the hall is run by a charity and mainly used for charitable purposes, charitable rate relief gives up to 80% off, and the council may top this up with discretionary relief so that nothing is payable. A charity cannot also get SBRR.
For the licensing, music and VAT rules that go with rates, see hiring out a village or church hall.
What should I do before I take bookings?
- Look up your property on the GOV.UK business rates search. If your barn, rooms or hall already have a rateable value, note it.
- Be honest about frequency and adaptations. Count the events you expect a year, and list changes such as toilets, a bar, a kitchen, lighting or a marquee pitch. The VO weighs these.
- If you are unsure, ask the VO. GOV.UK tells home-based businesses in England and Wales to contact the Valuation Office to find out whether they should pay business rates.
- If you are assessed, check the value through your business rates valuation account and challenge it if it looks wrong.
- Ask your council about relief: small business rate relief, the RHL multiplier, pubs relief or charitable relief. Build any bill into your hire prices.
What about Wales, Scotland and Northern Ireland?
Wales. The Valuation Office sets rateable values in Wales as in England, but Wales has its own multipliers and reliefs. For 2026-27 the Welsh Government set a standard multiplier of 0.502 (50.2p), a lower retail multiplier of 0.350 for eligible retail properties and a higher multiplier of 0.515 for the largest properties (SI 2026/39 sets the retail and higher multipliers as fixed proportions of the standard one). The England-only RHL multipliers and SBRR rules above do not apply. Check Business Wales for the Welsh small business rates relief thresholds.
Scotland. Ask your local assessor whether you should be on the valuation roll. Scotland had its own revaluation from 1 April 2026. Under the Small Business Bonus Scheme, Scottish Government guidance for 2026-27 gives 100% relief at a rateable value of £12,000 or less, tapering relief up to £20,000, and eligibility up to a combined rateable value of £35,000. Scotland also has 2026-27 relief of 15% for listed retail, hospitality and leisure uses and 40% for hotels, pubs, restaurants, nightclubs and live music venues, on the mainland up to a rateable value of £100,000. Function venues are not named in those lists, so ask your council.
Northern Ireland. Land & Property Services (LPS) assesses and collects rates. Where a property is partly business and partly residential, LPS assesses each part separately.
What we don't know
- The Budget on 28 October 2026. It may announce the 2027/28 multipliers, and the government said on 23 July 2026 that it would return to reform of small business rate relief at the Budget. It will also detail the 20% cut for pubs, clubs and live music venues from April 2027, including which large venues are excluded.
- Whether private-hire events count as "visiting members of the public" for the RHL multipliers. Your council decides this for your property.
- Where the de minimis line falls for you. The VO's example is not a safe limit, and its percentages are ranges, not fixed rates.
- Church halls hired out to the public. The exemption depends on the hall being used for the purposes of the church organisation. We did not find primary guidance on how much outside hire is allowed before that changes.
- The new duty to report changes to the VO. GOV.UK said in 2024 that ratepayers will have to report changes within 60 days, that the duty was expected to start after 1 April 2026 and that it will be mandatory for everyone by 1 April 2029. We could not confirm from a primary source when it applies to you.
- Backdating. We have not covered how far back a new or changed assessment can reach. Ask the VO or your council.
This guide is general information, not legal, tax or financial advice. For a decision about your property, speak to the VO, your council or a qualified rating surveyor.
Frequently asked questions
Do I have to pay business rates if I hire out my home for events?
You may. GOV.UK says business rates can apply as well as council tax if you sell services to people who visit your property, and the VO says homes used as function venues will "invariably" be rated as composite properties. It ignores the event use only in "very exceptional circumstances", such as a small venue with no adaptations, probably 5 or fewer single-day functions a year, all catering brought in and no marquees. Even if you are assessed, small business rate relief takes your 2026/27 bill in England to nil if the rateable value is £12,000 or less and it is the only business property you use.
Does a civil wedding licence make my property liable for business rates?
It is strong evidence that it is. The VO's rating manual says a civil ceremony licence "would be firm evidence of non-domestic use" and that the use is unlikely in most circumstances to be small enough to ignore. Whether you then pay a bill depends on the rateable value and the reliefs your council grants.
Is a farm barn used for weddings still exempt from business rates?
Usually not. Under Schedule 5 to the Local Government Finance Act 1988, farm buildings are exempt only when they are used solely in connection with agricultural operations, so a barn converted or regularly used for weddings and parties loses the exemption. Fields used year after year for events can stay in the rating list as part of a partly exempt hereditament, while a one-off use is unlikely to be assessed.
Do event venues get the retail, hospitality and leisure multiplier in 2026/27?
Some do. The regulations include "public halls and venues for hire for events or activities" where the events are principally for the benefit of visiting members of the public, but exclude premises for hosting meetings or conferences. Your council decides, and it is not settled whether private-hire events for invited guests qualify.
How much small business rate relief can an event venue get in England?
If the venue's rateable value is £12,000 or less and it is the only property your business uses, you get 100% relief for 2026/27. From £12,001 to £14,999 the relief tapers, for example 50% off at £13,500. From £15,000 there is no relief, but properties below £51,000 still pay the lower 43.2p multiplier.
Are church halls and village halls exempt from business rates?
Church halls and similar buildings used for the purposes of the organisation that runs public worship there are exempt under Schedule 5, para 11 of the Local Government Finance Act 1988. Village halls have no general exemption, but a hall run by a charity and mainly used for charitable purposes can get up to 80% off through charitable rate relief, which the council can top up. Village halls can also qualify for the lower retail, hospitality and leisure multipliers.
Sources
- Rating Manual section 6 part 3: civil ceremony, wedding and function venues, HM Revenue & Customs — gov.uk/guidance/rating-manual (wedding and function venues), accessed 26 October 2026.
- Rating Manual section 6 part 3: farm diversification, HM Revenue & Customs — gov.uk/guidance/rating-manual (farm diversification), accessed 26 October 2026.
- Local Government Finance Act 1988, section 64, legislation.gov.uk — legislation.gov.uk/ukpga/1988/41/section/64, accessed 26 October 2026.
- Local Government Finance Act 1988, section 66, legislation.gov.uk — legislation.gov.uk/ukpga/1988/41/section/66, accessed 26 October 2026.
- Local Government Finance Act 1988, Schedule 5, legislation.gov.uk — legislation.gov.uk/ukpga/1988/41/schedule/5, accessed 26 October 2026.
- The Non-Domestic Rating (Definition of Domestic Property) (England) Order 2026 (SI 2026/692), legislation.gov.uk — legislation.gov.uk/uksi/2026/692/made, accessed 26 October 2026.
- The Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025 (SI 2025/1093), legislation.gov.uk — legislation.gov.uk/uksi/2025/1093/made, accessed 26 October 2026.
- Business rates multipliers: qualifying retail, hospitality or leisure properties, GOV.UK — gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure, accessed 26 October 2026.
- Estimate your business rates, GOV.UK — gov.uk/estimate-your-business-rates, accessed 26 October 2026.
- Introduction to business rates: how your rates are calculated, GOV.UK — gov.uk/introduction-to-business-rates/how-your-rates-are-calculated, accessed 26 October 2026.
- Introduction to business rates: working at home, GOV.UK — gov.uk/introduction-to-business-rates/working-at-home, accessed 26 October 2026.
- Find a business rates valuation, GOV.UK — gov.uk/find-business-rates, accessed 26 October 2026.
- Small business rate relief, GOV.UK — gov.uk/business-rates-relief/small-business-rate-relief, accessed 26 October 2026.
- Supporting small business relief, GOV.UK — gov.uk/business-rates-relief/supporting-small-business-relief, accessed 26 October 2026.
- Exempt properties, GOV.UK — gov.uk/business-rates-relief/exempt-properties, accessed 26 October 2026.
- Charitable rate relief, GOV.UK — gov.uk/business-rates-relief/charitable-rate-relief, accessed 26 October 2026.
- Pubs and live music venues relief, GOV.UK — gov.uk/business-rates-relief/pubs-and-live-music-venues-relief, accessed 26 October 2026.
- Pubs and Live Music Venues Relief (27 January 2026), GOV.UK — gov.uk/government/news/pubs-and-live-music-venues-relief, accessed 26 October 2026.
- Burnham means business: PM slashes business rates bills for pubs, clubs and live music venues (23 July 2026), GOV.UK — gov.uk/government/news (23 July 2026), accessed 26 October 2026.
- Sharing more information on business rates valuations, GOV.UK — gov.uk/government/news/sharing-more-information-on-business-rates-valuations, accessed 26 October 2026.
- VOA integration with HMRC (12 March 2026), GOV.UK — gov.uk/government/news/voa-integration-with-hmrc, accessed 26 October 2026.
- Budget 2026, GOV.UK — gov.uk/government/topical-events/budget-2026, accessed 26 October 2026.
- Business Rates: Retail, Hospitality and Leisure (RHL) Multipliers, Stafford Borough Council — staffordbc.gov.uk, accessed 26 October 2026.
- Written Statement: Non-domestic rates support for 2026-27, Welsh Government — gov.wales/written-statement-non-domestic-rates-support-2026-27, accessed 26 October 2026.
- The Non-Domestic Rating (Value of Differential Multipliers) (Wales) Regulations 2026 (SI 2026/39), legislation.gov.uk — legislation.gov.uk/wsi/2026/39/made, accessed 26 October 2026.
- Local government finance circular 7/2026: non-domestic rates relief guidance, Scottish Government — gov.scot/publications (circular 7/2026), accessed 26 October 2026.
- Non-domestic rates revaluation 2026: draft valuation roll statistics, Scottish Government — gov.scot/publications/draft-2026-valuation-roll-statistics, accessed 26 October 2026.
- Properties you pay rates on, nidirect — nidirect.gov.uk/articles/properties-you-pay-rates, accessed 26 October 2026.
If you have worked out your rates position and want bookings, you can list your venue on HostList.uk. Organisers message you directly, the site takes 0% commission and HostList.uk does not handle payments. There is no minimum term and no notice period. Listing is free until 1 April 2027 (after that, publishing needs a paid plan), and one owner can publish up to 10 venues. To start, paste a link to your own website or an existing listing page and the listing is imported in about 30 seconds; you type the guest count by hand.