In England, you pay no business rates on a property with a rateable value of £12,000 or less if it's the only property your business uses. Relief tapers from 100% to 0% between £12,001 and £15,000, and you claim it through your local council, not HMRC.
Small business rate relief is one of the few business costs a sole trader or small company can cut to zero. These figures come from GOV.UK's business rates relief guide, as of October 2026. The rules differ in Scotland, Wales and Northern Ireland, so this guide covers England.
Who qualifies
- Your property's rateable value is less than £15,000.
- Your business uses only one property. You may still get relief if you use more, under the rules below.
- You're not already getting charitable rate relief. You can't have both, and the council decides which applies.
How much relief you get
| Rateable value | Small business rate relief |
|---|---|
| £12,000 or less | 100%: no business rates to pay |
| £13,500 | 50% off your bill |
| £14,000 | 33% off your bill |
| £15,000 or more | No small business rate relief |
Between £12,001 and £15,000 the relief goes down gradually from 100% to 0%. GOV.UK's two examples show how quickly it falls: halfway through the band you get half off.
If you take on a second property
Here's the change most small businesses haven't caught up with. When you get a second property, you keep relief on your main property for a grace period, and that period tripled for anyone expanding from late 2025:
| When you got the second property | Relief continues on your main property for |
|---|---|
| Before 27 November 2025 | 12 months |
| On or after 27 November 2025 | 36 months |
After that, you can still get relief on the main property if none of your other properties has a rateable value above £2,899 and the total rateable value of all your properties is less than £20,000, or £28,000 in London. So a café that opens a small second unit has three years to see whether it works before its rates bill changes.
How to get it, step by step
- Find your property's rateable value in your business rates valuation account with the Valuation Office (VO).
- Contact your local council to check you're eligible and ask how to claim.
- Ask the council which other reliefs you can get on top, such as rural rate relief.
- If you think the rateable value is wrong, challenge it with the VO through the same valuation account.
- If you think you should be getting relief but aren't, contact the council again.
The 2026 revaluation and supporting small business relief
A revaluation took effect on 1 April 2026. If you lost some or all of your small business rate relief because of it, GOV.UK says you may be eligible for supporting small business relief, a separate scheme to soften the jump. It's worth asking your council directly, because it isn't automatic for everyone.
If you don't qualify: the small business multiplier
Your bill is your rateable value multiplied by a multiplier. Properties with a rateable value below £51,000 use the lower small business multiplier even without relief. From 1 April 2026 to 31 March 2027, the multipliers are:
| Multiplier | Rate, 2026 to 2027 |
|---|---|
| Standard | 48p |
| Small business | 43.2p |
| Small business retail, hospitality and leisure | 38.2p |
They may differ in the City of London. If you're new to the system, start with the guide to business rates for small businesses. Business rates sit apart from tax on profits, so a limited company also budgets for Corporation Tax.
Other reliefs worth checking
GOV.UK lists several other reliefs in England. You may be eligible if your business is the only one in a rural area, a charity or a community amateur sports club, or if your property is empty, partly empty or being refurbished. Relief can also apply if you make certain improvements, if your rates change by more than a set amount at revaluation, if you're in financial difficulty, or if the property is in an enterprise zone or freeport, is a heat network, or is a pub or live music venue. Councils can also offer local discretionary relief to businesses that benefit the community.
Some properties are exempt altogether, including agricultural land and buildings, buildings used for training or welfare of disabled people, and buildings registered for public religious worship or church halls. If local disruption such as flooding or roadworks hits your premises, tell the VO, which decides on any temporary reduction.
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Report changes, or pay later
Tell your council if your property becomes empty, you get another property, you extend or renovate in a way that raises its value, or the business changes or moves. GOV.UK says you'll usually pay the new rate from the day your circumstances changed, so late reporting means a backdated bill. Some changes also need reporting to the VO.
My verdict
If your premises have a rateable value under £15,000, check today that the relief is on your bill, as of October 2026. It's claimed through the council, it's often worth the whole bill, and the new 36-month second-property window makes it safer to expand than it was. The mistake to avoid is staying quiet about a change: a backdated bill hurts more than a phone call.
Frequently asked questions
What is the small business rate relief threshold?
As of October 2026, you pay nothing on a single property with a rateable value of £12,000 or less, and relief tapers to nothing between £12,001 and £15,000.
How do I apply for small business rate relief?
Contact your local council. GOV.UK says the council checks your eligibility, tells you how to claim and confirms any other reliefs you can get on top.
Can I get small business rate relief with two properties?
You keep relief on your main property for 36 months if you got the second property on or after 27 November 2025, and after that if your other properties are each under £2,899 and the total is under £20,000, or £28,000 in London.
Can I get small business and charitable rate relief together?
No. You can't get both at the same time, and your local council decides which one applies.
Is small business rate relief automatic?
Not always. GOV.UK says to contact your local council to check eligibility and find out how to get it, and to contact them again if you think you're missing out.
