Small business rate relief

Small business rate relief review

We are carrying out a review of all businesses which receive small business rate relief.

If you receive small business rate relief, please confirm if you are still eligible for the relief.

Who can claim small business rate relief and what for

You can get small business rate relief if you:

• Occupy one property, and its rateable value is less than £15,000

• Occupy one main property and other properties in England as long as the other properties have rateable values less than £2,900 and the total rateable value of all the occupied properties is less than £20,000

Small business rate relief only applies to occupied properties.

You can only get small business rates relief on one property.

Ratepayers, who receive the following relief, are not entitled to small business rate relief:

• Mandatory charity relief
• Mandatory rural relief
• Mandatory former agricultural premises relief

Small business rate relief is not automatically applied to your account. You must complete our small business rate relief form if you think you will qualify.

How we calculate small business rate relief

From 1 April 2017

If you occupy a property with a rateable value below £51,000, we automatically calculate your business rates using the small business multiplier. 

You can get small business rate relief from if:

• Your current rateable value is £12,000 or below. You will receive small business rate relief at 100%

• Your current rateable value is between £12,001 and £14,999 inclusive. We use the small business multiplier and you will receive relief on a sliding scale - from 100% at £12,000 to 0% to £15,000

Apply for small business rate relief

If you take on an additional property

The rules changed in February 2014, so that if you occupy an additional property, you keep the small business rate relief on the original property for 12 months.

If you took on a new property on or after 27 November 2025, you keep the small business rate relief on the original property for three years.

If something changes that could affect your business rate relief

If something changes that could affect your small business rate relief you must tell us straight away. You can do so by contacting us using the contact details below.

Changes from 2027/28

In the Autumn Budget, the government announced changes to small business rate relief.

From 1 April 2027, the rateable value thresholds for qualifying retail, hospitality and leisure businesses will increase.

Qualifying retail, hospitality and leisure businesses

If your business qualifies as a retail, hospitality and leisure business:

• Properties with a rateable value of up to £18,000 will be eligible for 100% relief
• Tapered relief will be available for properties with a rateable value of up to £21,000

A business will be classed as a retail, hospitality and leisure business if it meets the criteria for the retail, hospitality and leisure multipliers.

For more information, see the government guidance on qualifying retail, hospitality and leisure businesses.

The current thresholds will continue to apply to properties that are not classed as retail, hospitality and leisure.

Changes for vape shops

Vape shops will no longer be eligible for small business rate relief.

The government will publish further guidance on what constitutes a vape shop in due course.

Businesses occupying more than one property

If a business qualifies for small business rate relief because it occupies one main property and one or more additional properties, the combined rateable value of all properties must be less than £30,000. This replaces the current threshold of £20,000.

Other eligibility criteria

All other eligibility criteria for small business rate relief will remain unchanged.