Small business rate relief in England: how to apply.

Business rates in a few lines

Business rates are a tax on non-domestic property, such as shops, offices, pubs, warehouses and factories. Your local council sends the bill, usually in February or March, for the year that starts on 1 April.

The bill starts from the property's rateable value. This is a figure set by the Valuation Office, not by the council. The council multiplies the rateable value by a multiplier, then takes off any relief you are entitled to.

A revaluation took effect on 1 April 2026, so many rateable values changed this year. It is worth checking your current figure before you work anything out.

The 2026/27 multipliers

For 1 April 2026 to 31 March 2027, GOV.UK lists these multipliers for England:

• Rateable value below £51,000. 43.2p in the pound, or 38.2p for eligible retail, hospitality and leisure businesses.
• Rateable value £51,000 to £499,999. 48p, or 43p for eligible retail, hospitality and leisure businesses.
• Rateable value £500,000 or more. 50.8p.

The City of London uses different multipliers. Wales has its own multipliers, and Scotland and Northern Ireland work out rates differently, so this guide covers England only.

Who can get small business rate relief

You can get small business rate relief if both of these apply:

• The property's rateable value is less than £15,000
• Your business uses only one property, although you may still qualify with more than one (see below)

You cannot get small business rate relief and charitable rate relief at the same time. If you could get both, your council decides which one applies.

The relief depends on the property and how many properties you use. It does not depend on your turnover, your profit or whether you are a sole trader or a limited company.

How much relief you get

• Rateable value of £12,000 or less. You pay no business rates on that property.
• Rateable value from £12,001 to £14,999. The relief falls gradually from 100% to 0% as the value rises.
• Rateable value of £15,000 or more. No small business rate relief.

GOV.UK gives two points on the sliding scale. A rateable value of £13,500 gets 50% off. A rateable value of £14,000 gets 33% off.

Worked examples

Your real bill can differ. Other reliefs, transitional arrangements and changes during the year all affect it, so always check the figures on the council's bill.

If you use more than one property

Taking on a second property does not stop your relief straight away. You keep relief on your main property for a period:

• 12 months if you got the second property before 27 November 2025
• 36 months if you got the second property on or after 27 November 2025

After that period, you can still get relief on your main property if both of these apply:

• None of your other properties has a rateable value above £2,899
• The total rateable value of all your properties is under £20,000, or under £28,000 in London

How to apply

There is no single national form. Small business rate relief is handled by your local council, and each council runs its own process. Follow these steps:

• 1. Find your rateable value. Use the GOV.UK service "Find a business rates valuation". It shows the rateable value of properties in England and Wales, and how each value was worked out.
• 2. Check it against the thresholds. Under £15,000 for a single property, or the second property rules above if you use more than one.
• 3. Find your council. This is the council that sends your business rates bill. GOV.UK has a postcode tool to find it.
• 4. Contact the council. Ask whether you are eligible and how to apply. Many councils have an online form. Have your business rates account number, the property address and the date you moved in to hand.
• 5. Check the next bill. The relief should show as a deduction. If it does not, ask the council why.

Ask the council too whether you can get any other business rates relief on top of small business rate relief.

If you think the rateable value is wrong

The rateable value is set by the Valuation Office, not the council. If you think it is wrong, challenge it through your business rates valuation account.

Report changes promptly

Relief depends on the property and how many properties you use. So keep the council up to date if you take on another property, even a small one. It decides whether you are still eligible.

Changes to the premises themselves go to the Valuation Office, through your business rates valuation account. GOV.UK gives examples such as:

• You move or make changes to your premises
• The nature of your business changes
• You sublet part of your property
• You merge 2 or more properties into 1

Reporting changes promptly helps you avoid a backdated increase in your bill.

Supporting small business relief for 2026/27

The 2026 revaluation pushed some rateable values up. If that made you lose some or all of your small business rate relief, you may get supporting small business relief instead. It also covers businesses that lost rural rate relief, retail, hospitality and leisure relief, or the 2023 supporting small business relief.

For 2026/27, your bill goes up by no more than £800 or a percentage cap, whichever is greater, compared with your 2025/26 bill. The cap is 5% for rateable values up to £20,000 (£28,000 in London). It is 15% from £20,001 to £100,000 (£28,001 to £100,000 in London), and 30% above £100,000. GOV.UK says the council adjusts your bill if you are eligible.

Recording business rates in your books

Business rates are a regular cost, and the payments leave your bank through the year. A few habits keep them tidy in your bookkeeping:

• Save each year's bill, and any revised bill, with your records
• Code the payments to a rates account, not to rent or general overheads
• Check that the payments leaving the bank match the payment schedule on the bill
• If a revised bill gives you a credit or a refund, record it against the same account

If you want to know which other costs a business can claim, see our guides on allowable expenses for limited companies and expenses for the self-employed.