Small Business Rate Relief: Eligibility & How to Apply

This guide outlines how small businesses in England can secure Small Business Rate Relief. It details the criteria for receiving up to 100% relief for properties with a rateable value under £15,000, multi-property rules, and calculation methods.

Key Takeaways

• Properties with a rateable value of £12,000 or less receive 100% business rates relief.
• Tapered relief is available for properties with a rateable value between £12,001 and £14,999.
• The small business multiplier of 43.2p applies to properties with a rateable value below £51,000.
• A new 3-year grace period applies from April 2026 when a business takes on an additional property.

Does my small shop qualify for Small Business Rate Relief?

Your small shop will qualify for Small Business Rate Relief if its rateable value is £15,000 or less and you occupy only one business property in England.

• The property must be your main place of business in England.
• The rateable value of your main shop must not exceed £15,000.
• You must not occupy additional properties unless they meet specific low-value thresholds.

What is Small Business Rate Relief (SBRR)?

Small Business Rate Relief is a government scheme in England designed to reduce the physical property tax burden on small firms. Under the Non-Domestic Rating (Small Business Rate Relief) (England) Regulations 2023, eligible occupiers with low rateable values receive a percentage reduction on their local non-domestic rates bill.

How much could I save with SBRR?

Your total savings depend on your property's precise rateable value, which is assessed against the 2026/27 small business multiplier.

For properties valued between £12,001 and £14,999, the relief decreases gradually. The tapered relief rate reduces by 1% for every £30 of rateable value above the £12,000 threshold.

What if I occupy more than one business property?

You can still receive relief on your main property if your additional properties do not exceed specific statutory limits.

• Any additional property you occupy must have a rateable value of £2,899 or less.
• The cumulative rateable value of all your properties must remain below £20,000, or below £28,000 in Greater London.
• From April 2026, you can keep your existing relief for 3 years after taking on an additional business property.

How does the small business multiplier work for larger properties?

Properties with a rateable value below £51,000 that do not qualify for SBRR still benefit from a lower national tax multiplier.

1. Locate your property's official rateable value, which must be under £51,000.
2. Apply the 2026/27 small business multiplier of 43.2p instead of the standard 48p multiplier.
3. Multiply your rateable value by 0.432 to calculate your annual basic business rates bill.

How does the 2026 revaluation affect my rates?

The Valuation Office Agency periodically updates non-domestic property valuations, with the latest valuations taking effect from 1 April 2026. A change in your rateable value can impact your eligibility for the standard relief scheme.

To prevent sudden financial hardship, the 2026 Supporting Small Business Relief scheme assists those who lose entitlement due to revaluation. This protective scheme caps your annual bill increase at £800, ensuring a manageable transition to your new rates liability.

How to apply for Small Business Rate Relief

You must actively apply for Small Business Rate Relief because local authorities do not award it to your business bill automatically.

1. Find your property's actual rateable value using the online Valuation Office Agency rating list.
2. Contact your local municipal council, as they are responsible for billing and administering local rates.
3. Complete and submit the official small business rate relief application form provided by your council.
4. Report any future changes in your business operations, such as renting additional premises, to the council.

Frequently Asked Questions

Does my small shop qualify for Small Business Rate Relief?

Yes, provided your shop is your only business premises in England and its rateable value is £15,000 or less.

How much can I save with Small Business Rate Relief?

You can save up to 100% of your bill (up to £5,184 annually) if your rateable value is £12,000 or less, with tapered savings up to £15,000.

Can I claim Small Business Rate Relief on two properties?

You only receive the relief on your main property. You can keep this relief if your second property has a rateable value under £2,899 and your total rateable value is under £20,000 (£28,000 in London).

Is Small Business Rate Relief applied automatically?

No, it is not automatic. You must contact your local council to submit a formal application for the relief.

What is the rateable value limit for Small Business Rate Relief in England?

The maximum rateable value limit to qualify for any percentage of Small Business Rate Relief is £15,000.