What is Small Business Rates Relief?

| Harry Brown

What is small business rates relief?

Key Takeaways | What is SBRR? | Eligibility | Examples | How to Apply | Multiple Properties | UK Schemes |
Need Help? | FAQ

Key Takeaways:

  • What is it: A government scheme in England that can significantly reduce or even eliminate your business rates bill.
  • Eligibility Threshold: Your property’s Rateable Value (RV) must be under £15,000.
  • The Sweet Spot: You get 100% relief (and pay no business rates) if your property’s RV is £12,000 or less.
  • How to Apply: You must apply for the relief directly through your local council.
  • UK-Wide Rules: The scheme detailed is for England; rules and names differ for Scotland, Wales, and Northern Ireland.

 

What is Small Business Rates Relief (SBRR)?

Small Business Rates Relief is a government scheme in England that can reduce or even eliminate your business rates bill, depending on the rateable value of your property.

It is calculated using your property’s rateable value, which is not the same as your rent. It is an estimate of the property’s open market rental value on a specific date, set by the Valuation Office Agency (VOA).

Rateable values are currently revalued every 3 years, with the next revaluation scheduled for April 2026.

Figures for the revaluation are currently available on the VOA website.

Check the rateable value of your commercial property via the GOV.UK lookup tool.

Use our free Small Business Rates Relief calculator to quickly check how much you could save.

 

Who is Eligible for Small Business Rates Relief?

Small Business Rates Relief is only available on properties with a rateable value under £15,000.

Rateable Value of £12,000 or less:

  • You receive 100% relief and pay no business rates.

Rateable Value between £12,001 and £15,000:

  • You receive tapered relief. The relief gradually reduces from 100% to 0%. For example, a property with an RV of £13,500 will receive 50% relief.

Rateable Value of £15,000 or more:

  • No SBRR, even on the first £15,000.

 

How is Small Business Rates Relief Calculated

Business Rates = (Rateable Value × Multiplier) − Relief

The Small Business Rates Multiplier is currently 43.2p for properties with a rateable value under £51,000.

  1. Find your rateable value using the VOA website.
  2. Multiply your rateable value by 0.432.
  3. Subtract your business rates relief.

 

Use our SBRR calculator for quick estimates.

 

How to Apply for Small Business Rates Relief

To apply for small business rates relief you must first find your properties rateable value via the GOV.UK lookup tool and make sure it is under £15,000.

You then must apply for it through your local council which for us is Manchester City Council. This can be done through a form, phone, or email.

Once the relief is given it will stay in place and you will not need to re-apply every year.

 

Small Business Rates Relief for Multiple Properties

Small Business Rates Relief (SBRR) is primarily designed for businesses that occupy a single property with a low rateable value.

Following the 2025 Autumn budget the government is extending the Small Business Rates Relief (SBRR) grace period from one to three years.

This means businesses will now remain eligible for SBRR on their first property for three years after expanding into a second property. 

This will only apply to businesses who expand after the date of the budet – 26 November 2025.

After this 3 year period, SBRR will only remain in place for your main property if both of the following apply:

  • The additional property has a rateable value of less than £2,899

  • The combined rateable value of all your properties is less than £20,000 (or £28,000 in London)

 

You cannot receive SBRR on multiple properties owned by the same legal entity.

However, you may be able to claim relief on more than one property if they are held under different legal entities.

For example, one under personal ownership and another under a limited company.

 

Can I get a Refund or Rebate on my Business Rates?

Yes, you can apply for a full refund or partial repayment (sometimes called a ‘rebate’) of your business rates.

You can do this if, for example:

  • You have not been using the Small Business Rates Relief scheme when you have been eligible.
  • Your business moved and you carried on paying business rates for the vacated property.
  • Your rates have been reduced and you’ve been charged the wrong amount.

You must request a refund or rebate through your council.

 

Can I Appeal my Properties Rateable Value?

Yes, you can do this through your business rates valuation account where you can:

 

Is Rateable Value Determined by the Size of the Office?

Not exactly. Rateable value reflects rental value, not just square footage.

For example, in a prime Manchester location, £40/sq ft could mean a 300 sq ft office hits the £12,000 threshold.

In less central areas at £20/sq ft, a 600 sq ft office might still qualify for full relief.

 

Small business rates relief across the UK

Business rates relief schemes vary by country:

 

Need Help Understanding Your Business Rates Relief?

Canning O’Neill are more than commercial office agents – we’re trusted advisers.

  • We explain rateable values and what they mean for you
  • We help estimate business rates liability
  • We advise how location, size, and use affect costs

For free advice on your Business Rates Contact us today.

 

Frequently Asked Questions

Do I need to apply for Small Business Rates Relief?

Yes, you must apply for it through your local council which for us is Manchester City Council.

 

Can I get relief for more than one property?

Yes, if the additional property has a rateable value of less than £2,899, and the combined rateable value of all your properties is less than £20,000 (or £28,000 in London).

 

Can I appeal my rateable value?

Yes. If you believe your rateable value is incorrect, you can challenge it. The process starts with your business rates valuation account on the GOV.UK website.

 

When is the next rateable value revaluation?

Rateable values are currently revalued every three years. The next revaluation is scheduled to take effect from 1 April 2026, figures are currently available for the 2026 revaluation through the VOA website.

 

Can I get a refund if I was eligible but didn’t claim SBRR in the past?

Yes, you can apply to your local council to backdate a claim for SBRR and request a refund or a rebate for the periods you were eligible but didn’t receive the relief.

 

What is the business rates multiplier for 2025–26?

For the 2025–26 financial year, the small business multiplier (for properties with an RV below £51,000) is 43.2p. The standard multiplier is 48p.