What is Small Business Rate Relief (SBRR)?

Small Business Rate Relief provides 100% relief for properties with a rateable value of £12,000 or less. For rateable values between £12,001 and £15,000, tapered relief applies. You must only use one property as your main business premises to qualify.

How is rateable value determined?

Rateable value is set by the Valuation Office Agency (VOA) based on the open market rental value of your property as of 1 April 2021 (for the 2023 revaluation). Factors include property size, location, parking, and use type.

What is Retail, Hospitality and Leisure Relief?

For 2025/26, eligible retail, hospitality and leisure properties can receive 75% relief on their business rates, up to £110,000 per business. This includes shops, restaurants, pubs, hotels, and leisure venues.

What happens if my business property is empty?

Empty commercial properties are exempt from business rates for 3 months (6 months for industrial properties). After this period, you pay full rates unless you qualify for exemptions such as listed buildings, low rateable value, or insolvency.

UK Business Rates Calculator 2025/26

Last updated: February 2026

Calculate your business rates liability with all available reliefs including Small Business Rate Relief, Retail Relief, and Charitable Relief. Updated with latest VOA multipliers.

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Business Rates Calculator

Estimate your annual rates bill

Rateable Value (RV) from VOA

Location

Property Type

Relief Eligibility select all that apply

Small Business Rate Relief Retail/Hospitality Relief (75%) Rural Rate Relief Charity Relief (80-100%)

Local Authority Discretionary Relief

Empty Period

Calculation Breakdown

Find Your Rateable Value Search for your property's rateable value on the VOA website. Enter your postcode and property address to find your current RV.

Type	Rate
Standard (England)	54.6p
Small Business (England)	49.9p
Standard (Wales)	53.5p
Small Business (Wales)	53.5p

Understanding UK Business Rates

Business rates (Non-Domestic Rates) are a property tax paid by occupiers of non-residential properties in England and Wales. The amount you pay is based on your property's rateable value, set by the Valuation Office Agency (VOA), multiplied by a rate (the "multiplier") set annually by the government.

How Business Rates are Calculated

Your annual business rates bill is calculated using this simple formula:

Business Rates = Rateable Value × Multiplier For example: £20,000 RV × 0.499 = £9,980 per year

From this gross figure, you may be able to deduct various reliefs and exemptions. The 2025/26 multipliers are:

Multiplier Type	England	Wales	Applies To
Standard Multiplier	54.6p	53.5p	Properties with RV > £51,000
Small Business Multiplier	49.9p	53.5p	Properties with RV ≤ £51,000

What is Rateable Value?

Rateable value (RV) is an estimate of the annual rent your property could achieve on the open market at a specific date. For the current rating list (2023-2026), this date is 1 April 2021. The VOA considers:

Size and layout - Floor area and internal configuration
Location - Prime high street vs. secondary location
Physical characteristics - Age, condition, and facilities
Use class - Retail, office, industrial, warehouse, etc.
Comparable rents - Actual rents paid for similar properties

Available Business Rates Reliefs

The UK government offers several relief schemes to reduce business rates bills. Eligibility depends on your property type, rateable value, and business circumstances.

Small Business Rate Relief Up to 100%

For small businesses with property RV of £15,000 or less. Must be your only or main business property.

100% relief: RV ≤ £12,000
Tapered relief: RV £12,001-£15,000
Small multiplier only: RV £15,001-£51,000

Retail, Hospitality & Leisure 75%

For 2025/26, eligible properties receive 75% relief (up to £110,000 per business).

Shops and retail outlets
Restaurants, cafes, pubs
Hotels and B&Bs
Cinemas, leisure venues

Charitable Relief 80-100%

Registered charities and Community Amateur Sports Clubs (CASCs) receive mandatory relief.

80% mandatory relief
Up to 20% discretionary (local authority)
Property must be used for charitable purposes

Rural Rate Relief 50-100%

For businesses in designated rural settlements with population under 3,000.

Only village shop/post office/pub
Food shops: RV ≤ £8,500
General stores/pubs: RV ≤ £12,500

Empty Property Relief Temporary

Empty commercial properties are exempt from rates for a limited period.

3 months for most properties
6 months for industrial/warehouse
Listed buildings: 100% exempt
RV below £2,900: 100% exempt

Transitional Relief Automatic

Limits increases (and decreases) following revaluations. Applied automatically to bills.

Caps annual bill increases
Protects against sudden rises
Runs for duration of rating list

Small Business Rate Relief (SBRR) Explained

Small Business Rate Relief is the most common relief claimed by UK businesses. To qualify, your property must have a rateable value of £15,000 or less, and it must be your sole or main business premises.

SBRR Relief Percentages

Rateable Value	Relief %	Effective Rate	Example (RV £10,000)
£0 - £12,000	100%	£0	£0 per year
£12,001	100%	£0	-
£13,000	67%	~£2,145	-
£14,000	33%	~£4,330	-
£15,000	0%	~£7,485	-

Important SBRR Conditions You can only claim SBRR if this is your only business property OR if all your additional properties have a combined RV below £2,900. Having additional properties above this threshold disqualifies you from SBRR entirely.

How to Apply for SBRR

Contact your local council's business rates team
Complete the Small Business Rate Relief application form
Confirm you meet the eligibility criteria
Relief is applied from the date of occupation or application

Business Rates Revaluation 2023

The most recent revaluation took effect on 1 April 2023. This updated all rateable values based on rental values as of 1 April 2021. The UK is moving to more frequent revaluations to better reflect market changes.

Revaluation Timeline

April 2017 Revaluation

Based on 2015 rental values. Created current rating list for 2017-2023.

April 2023 Revaluation

Based on April 2021 rental values. Current rating list for 2023-2026.

April 2026 Revaluation (Scheduled)

Will be based on April 2024 rental values. Part of new 3-year cycle.

Challenging Your Rateable Value

If you believe your rateable value is incorrect, you can challenge it through the Check, Challenge, Appeal process:

Step 1: Check

Verify your property details on the VOA website. Check the property description, floor areas, and any features that might affect the value. Notify the VOA of any errors.

Step 2: Challenge

If you still disagree after checking, submit a formal challenge. You must provide evidence why the RV is wrong, such as comparable rental evidence or property changes.

Step 3: Appeal

If your challenge is rejected and you still disagree, you can appeal to the independent Valuation Tribunal. There's a fee and strict time limits apply.

Paying Your Business Rates

Business rates are collected by your local council (billing authority). Most councils offer flexible payment options:

Payment Method	Frequency	Notes
Direct Debit	10 or 12 instalments	Most convenient, automatic collection
Standing Order	Monthly	You control payment dates
Online Payment	As required	Credit/debit card, bank transfer
Telephone	As required	Card payment over phone
PayPoint/Post Office	As required	Cash or card at local outlets

Late Payment Consequences If you don't pay on time, your council will send reminders and may take enforcement action including court summons, liability orders, and potentially bailiffs. Contact your council immediately if you're struggling to pay.

Frequently Asked Questions

For 2025/26, the standard multiplier in England is 54.6p and the small business multiplier is 49.9p. In Wales, both multipliers are set at 53.5p. The multiplier is applied to your property's rateable value to calculate your business rates bill. Properties with RV over £51,000 use the standard multiplier; those at or below £51,000 use the small business multiplier.

Small Business Rate Relief provides 100% relief for properties with a rateable value of £12,000 or less, meaning you pay no business rates at all. For rateable values between £12,001 and £15,000, tapered relief applies on a sliding scale. To qualify, you must only use one property as your main business premises, or have additional properties with a combined RV below £2,900.

Rateable value is set by the Valuation Office Agency (VOA) based on the open market rental value of your property as of a specific date - for the current 2023 rating list, this is 1 April 2021. The VOA considers factors including property size, location, age, condition, parking facilities, and use type. You can check your rateable value on the GOV.UK website.

Yes, you can challenge your rateable value through the Check, Challenge, Appeal process. First, check your property details on the VOA website for errors in the description or measurements. If still incorrect, submit a formal challenge with evidence such as comparable rental data. If your challenge is rejected, you can appeal to the independent Valuation Tribunal, though fees apply.

For 2025/26, eligible retail, hospitality and leisure properties can receive 75% relief on their business rates, capped at £110,000 per business. This includes shops, restaurants, cafes, pubs, hotels, B&Bs, cinemas, and leisure venues. The relief is applied automatically by your local council in most cases. This scheme is due to end on 31 March 2025.

Registered charities and Community Amateur Sports Clubs (CASCs) receive mandatory 80% relief on business rates for properties used wholly or mainly for charitable purposes. Local authorities can also grant discretionary relief of up to an additional 20%, potentially giving 100% relief. Charity shops selling donated goods for charity purposes also qualify.

Empty commercial properties are exempt from business rates for 3 months from the date they become empty (6 months for industrial properties such as warehouses). After this exempt period, you pay full business rates. Some properties remain exempt: listed buildings, properties with RV below £2,900, properties where the owner is in administration or liquidation, and properties prevented from being occupied by law.

The most recent revaluation took effect on 1 April 2023, based on rental values as of 1 April 2021. The next revaluation is scheduled for 1 April 2026. The government has moved to a 3-year revaluation cycle (from the previous 5-year cycle) to ensure rateable values better reflect current market conditions.

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Founder & Developer - UKCalculator.com

The UK Calculator team is the founder and developer of UKCalculator.com, providing free, accurate calculators for UK residents.

Last updated: February 2026 | Rates data verified against GOV.UK multipliers

Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: February 2026.

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Official Sources

GOV.UK - Business Rates

How to Use This Business Rates Calculator

Follow these five simple steps to estimate your annual business rates bill:

Enter your property's rateable value — You can find your rateable value on the GOV.UK website by searching your postcode and property address.
Select the current multiplier — Choose either the standard multiplier (54.6p for properties with RV above £51,000) or the small business multiplier (49.9p for properties with RV at or below £51,000).
Check if you qualify for Small Business Rate Relief — If your rateable value is £15,000 or less and this is your only or main business property, tick the SBRR box to apply the relief automatically.
View your annual business rates bill — The calculator will display your gross rates, any relief deductions, and your net annual liability.
See your monthly payment amount — Your annual bill is divided by 12 to show the approximate monthly cost, helping you plan your cash flow.

Worked Examples: Business Rates 2025/26

These examples show how business rates are calculated for different property types and rateable values:

Example 1: Small Shop

Rateable value: £10,000

With a rateable value under £12,000, this property qualifies for 100% Small Business Rate Relief.

Business rates = £0 per year

Example 2: Office

Rateable value: £20,000

This property uses the small business multiplier (49.9p) as the RV is below £51,000. No SBRR applies since RV exceeds £15,000.

Calculation: £20,000 × 0.499 = £9,980 per year

Annual rates = £9,980 (£832/month)

Example 3: Large Retail Unit

Rateable value: £60,000

With an RV above £51,000, the standard multiplier (54.6p) applies.

Calculation: £60,000 × 0.546 = £32,760 per year

Annual rates = £32,760 (£2,730/month)

Example 4: Tapered Small Business Rate Relief

Rateable value: £14,000 (between £12,000 and £15,000)

For rateable values between £12,001 and £15,000, Small Business Rate Relief is tapered. The relief percentage decreases from 100% to 0% on a sliding scale.

Relief calculation: (15,000 − 14,000) ÷ (15,000 − 12,000) × 100 = 33.3% relief

Gross rates: £14,000 × 0.499 = £6,986

Relief amount: £6,986 × 33.3% = £2,326

Net annual rates = £4,660 (£388/month) — saving £2,326 with tapered SBRR

Sources & Methodology

This calculator uses official data published by the UK Government and the Valuation Office Agency (VOA). All rates and thresholds are verified against the following sources:

Official References

2025/26 Multipliers Used

Multiplier	Rate
Standard multiplier (England)	54.6p
Small business multiplier (England)	49.9p

Small Business Rate Relief (SBRR) Thresholds

100% relief for properties with a rateable value of £12,000 or less
Tapered relief for rateable values between £12,001 and £15,000, decreasing on a sliding scale from 100% to 0%

Disclaimer: This calculator provides estimates for guidance purposes only. Actual business rates bills may vary depending on transitional relief arrangements, local authority discretionary reliefs, and individual circumstances. Always check with your local council or a qualified professional for definitive figures. We are not affiliated with HMRC or the Valuation Office Agency.