Business rates relief: which schemes small firms in England can still use

Correct as at 8 November 2026.

Since the revaluation on 1 April, England’s small firms have faced a changed business rates relief system, with new claims for retail, hospitality and leisure relief closed.

What changed on 1 April?

GOV.UK said no new claims can be made for retail, hospitality and leisure relief, with rate multipliers used to calculate bills from 1 April.

Pubs and live music venues may still qualify for their own relief, and claims for earlier years can be made through the local council.

A separate scheme, supporting small business relief, cushions bills for firms that lost some or all of their previous relief because of the revaluation.

Who decides, and where do the rules apply?

Relief covers England only. GOV.UK said the rules differ for properties in Scotland, Wales and Northern Ireland.

Local councils decide eligibility, send bills and collect payments, and can also choose to offer relief to businesses that benefit the local community or economy.

Who qualifies for small business rate relief?

A business can qualify for small business rate relief if its property has a rateable value below £15,000 and it uses only one property, although relief may still apply with more.

A single property with a rateable value of £12,000 or less pays no business rates, according to GOV.UK.

Between £12,001 and £15,000, relief falls gradually from 100% to 0%. GOV.UK gives examples: £13,500 earns 50% off the bill and £14,000 earns 33% off.

Small business rate relief cannot be held alongside charitable rate relief, and the council decides which of the two applies.

What if a business takes a second property?

Relief on the main property continues for 12 months if the second property was acquired before 27 November 2025, and for 36 months if acquired on or after that date.

Relief can continue beyond that period if no other property has a rateable value above £2,899 and the combined rateable value is under £20,000, or £28,000 in London.

What is supporting small business relief?

The supporting small business relief scheme applies where a bill has risen because of the revaluation and the business lost small business, rural, retail, hospitality and leisure, or 2023 supporting relief.

For 2026-27, bills rise by no more than £800 or a percentage cap, whichever is greater. The cap is 5% up to £20,000 (£28,000 in London).

It is 15% for rateable values from £20,001 to £100,000, and 30% above £100,000. The increase is measured against the 2025-26 bill, including any relief received.

In GOV.UK’s example, a cafe paid £14,970 in 2025-26 after 40% retail, hospitality and leisure relief. Its rateable value rises to £110,000, so the 30% cap lifts the bill to £19,461.

In a second example, a gift shop’s bill of £4,491 rises with its rateable value to £20,000. Five per cent would be £225, so the £800 floor applies and the bill becomes £5,291.

What is rural rate relief?

Rural rate relief applies in eligible rural areas with a population below 3,000, and eligible businesses pay no business rates.

The business must be the only village general store, food shop or post office with a rateable value up to £8,500, or the only pub or petrol station up to £12,500.

Where an area has more than one business, both can apply if they are different types, such as a pub and a food shop. The property must be occupied.

Councils hold the lists and maps of eligible areas.

What other help exists?

GOV.UK lists relief for empty, partly empty or refurbished properties, certain improvements, large rate changes at revaluation, financial difficulty, enterprise zones, freeports and heat networks.

Some properties are exempt altogether, including agricultural land and buildings, buildings for the training or welfare of disabled people, and registered places of worship or church halls.

A temporary reduction may be available for severe local disruption such as flooding, nearby building work or roadworks. The Valuation Office decides, and businesses report it through their business rates valuation account.

Who is left out?

Businesses with a single property above £15,000 get no small business rate relief, and those with a second property face the time limits above.

Firms in retail, hospitality and leisure can no longer make new claims for that relief, although earlier years may still be claimed.

A property with a rateable value below £51,000 still uses the lower small business multiplier even without relief. It is 43.2p, against a standard 48p, from 1 April to 31 March 2027.

Retail, hospitality and leisure businesses below £51,000 use a 38.2p multiplier for the same period. GOV.UK said multipliers may differ in the City of London.

How is eligibility checked?

GOV.UK said businesses should contact their local council to check eligibility, find out how to apply and ask about other reliefs that can sit alongside small business rate relief.

Changes must be reported to the council, including a property becoming empty, a new property, extensions or renovations, or a change in the nature or location of the business.

Relief may fall if the rateable value has risen, and the new rate usually applies from the day circumstances changed.

A business that thinks its rateable value is wrong can challenge it with the Valuation Office through its business rates valuation account.

When do the current multipliers and caps stop applying?

The current multipliers and supporting small business relief caps apply to the 2026-27 billing year, which ends on 31 March 2027.