What is Small Business Rate Relief?
Small Business Rate Relief (SBRR) is one of the most valuable reliefs available to small businesses in England. It reduces — or completely eliminates — your business rates bill if you occupy a property with a low rateable value and meet certain conditions.
For 2025/26, if your property has a rateable value of £12,000 or less and it is your only business premises, you pay zero business rates. This can mean a saving of thousands of pounds per year compared with businesses that do not qualify.
SBRR Thresholds for England 2025/26
| Rateable Value |
Relief |
Multiplier Used |
| Up to £12,000 | 100% | 49.9p |
| £12,001 – £15,000 | Tapered (100% down to 0%) | 49.9p |
| £15,001 – £51,000 | None (but small business multiplier applies) | 49.9p |
| Over £51,000 | None | 54.6p |
Eligibility Conditions
- You must occupy the property — SBRR does not apply to empty properties.
- Your property must be in England (separate schemes apply in Wales and Scotland).
- You must occupy only one property, or additional properties must each have a rateable value below £2,900.
- The total rateable value of all your properties must be below £28,000 in Greater London or £20,000 elsewhere.
How the Taper Works (£12,001–£15,000)
If your rateable value falls between £12,001 and £15,000, your relief is calculated as:
Relief % = (£15,000 − Rateable Value) ÷ £3,000 × 100
For example, a rateable value of £13,500 gives: (£15,000 − £13,500) ÷ £3,000 × 100 = 50% relief.
Wales and Scotland
In Wales, the Small Business Rates Relief scheme offers 100% relief for properties with a rateable value up to £6,000, with tapered relief to £12,000. The multiplier and thresholds differ from England.
In Scotland, the Small Business Bonus Scheme provides 100% relief for properties up to £15,000 RV, with tapered relief to £18,000. Properties valued between £18,001 and £35,000 receive 25% relief if this is your only business property.
Frequently Asked Questions
What is Small Business Rate Relief (SBRR)?▼
SBRR is a government scheme that reduces or eliminates business rates for small businesses in England. If your property has a rateable value of £12,000 or less and you only occupy one property, you pay no business rates at all.
What is the SBRR threshold for 2025/26?▼
For 2025/26, properties with a rateable value up to £12,000 receive 100% relief. Properties with RV between £12,001 and £15,000 receive tapered relief. Above £15,000, no SBRR applies, but the small business multiplier (49.9p) still applies up to £51,000 RV.
How do I apply for Small Business Rate Relief?▼
Contact your local council directly. Many councils automatically apply SBRR if you are eligible, but you should confirm this. You will need to provide details of all business properties you occupy. Some councils require a formal application form.
Can I get SBRR if I occupy more than one property?▼
Generally no. SBRR is designed for businesses occupying a single property. If you occupy additional properties, you lose SBRR unless each additional property has a rateable value below £2,900 and the total rateable value of all properties is below £28,000 in Greater London or £20,000 elsewhere.
Is SBRR available in Wales and Scotland?▼
Yes, but with different rules. In Wales, the scheme has different thresholds. In Scotland, the Small Business Bonus Scheme offers 100% relief for properties up to £15,000 RV. Always check with your devolved government for current rates.
Do I need to notify my council of changes?▼
Yes. You must notify your council within 3 months if you take on additional properties or your circumstances change. Failure to do so could result in overpayment demands and potential penalties.
Does SBRR affect my rent reviews?▼
SBRR does not directly affect the rateable value of your property, which is set by the VOA. The rateable value is the basis for rent review comparisons, not the rates you actually pay after relief.
Do holiday lets qualify for SBRR?▼
Holiday lets available for short-term letting for at least 140 days per year are assessed for business rates. If the rateable value is low enough, SBRR may apply. Rules vary — check with your local council as reforms in this area are ongoing.
Does SBRR apply to empty properties?▼
No. SBRR only applies to occupied properties. Empty properties have their own rates exemption rules: most get 3 months free, industrial properties get 6 months free, and after that the full standard rate applies.
What is transitional relief and how does it interact with SBRR?▼
Transitional relief limits how much your rates bill can increase following a revaluation. If you are entitled to SBRR, this is usually applied first, and transitional relief applies to the net position. Your council can confirm how both reliefs apply to your specific bill.
Can I get SBRR for temporary or pop-up premises?▼
SBRR applies based on rateable value, not lease length. If you occupy a temporary space that is separately rated with a low rateable value, you may qualify. However, shared spaces or licensed concessions may be treated differently — check with your council.
What happens if my circumstances change mid-year?▼
If you become eligible for SBRR during the year, the relief is applied from the date you became eligible. Similarly, if you lose eligibility, the relief stops from that date. Your council will issue a revised rates demand reflecting the change.