Small Business Rates Relief Calculator 2025/26
Calculate your business rates bill and Small Business Rates Relief (SBRR). Properties under £12,000 rateable value pay nothing. Includes RHL discount and England multipliers.
Last updated: March 2026
UK Small Business Rates Relief Calculator 2025/26
Enter your property details to find your business rates bill, applicable relief, and net amount payable
England Business Rates: SBRR Reference Table 2025/26
Multipliers for 2025/26: Small Business Multiplier = 49.9p (£0.499), Standard Multiplier = 54.6p (£0.546)
| Rateable Value (RV) | SBRR Relief | Multiplier Used | Example Bill (RV shown) |
|---|---|---|---|
| Under £12,000 | 100% — Pay nothing | 49.9p (SBM) | RV £8,000 → £0 |
| £12,001 – £15,000 | Tapered 100% → 0% | 49.9p (SBM) | RV £13,500 → approx. £2,494 |
| £15,001 – £51,000 | No SBRR but SBM applies | 49.9p (SBM) | RV £25,000 → £12,475 |
| £51,001 – £110,000 | Standard multiplier | 54.6p (Standard) | RV £75,000 → £40,950 |
| Over £110,000 | Standard multiplier only | 54.6p (Standard) | RV £200,000 → £109,200 |
2025/26 RHL Discount: Retail, Hospitality & Leisure properties with RV up to £110,000 receive 40% off their rates bill (reduced from 75% in 2024/25). This is applied by your local council automatically. Always check with your billing authority for the most current figures.
Business Rates and SBRR: Complete Guide for Small Businesses
Business rates are a tax on non-domestic properties in the UK — offices, shops, warehouses, factories, and similar premises. Like council tax for homes, business rates are based on the estimated rental value of the property. This estimated value is called the rateable value (RV) and is set by the Valuation Office Agency (VOA) in England and Wales (or equivalent bodies in Scotland and Northern Ireland).
Your annual business rates bill is calculated by multiplying your rateable value by the business rates multiplier — a figure set by central government each year. For 2025/26, England has two multipliers: the small business multiplier (49.9 pence per pound of RV) for properties with RV up to £51,000, and the standard multiplier (54.6 pence) for larger properties. Before you pay, however, you may be entitled to various reliefs that reduce or eliminate your bill.
How Small Business Rates Relief Works in England
Small Business Rates Relief (SBRR) is the most significant relief for small property occupiers in England. The thresholds for 2025/26 are:
- RV under £12,000: 100% relief — you pay nothing. Even though the notional bill (RV × multiplier) may be several thousand pounds, SBRR wipes it out entirely.
- RV £12,001 to £15,000: Tapered relief. The percentage relief decreases on a sliding scale from 100% at £12,000 down to 0% at £15,000. The formula is: relief percentage = 1 − ((RV − 12,000) ÷ 3,000).
- RV £15,001 to £51,000: No SBRR, but the small business multiplier (49.9p) applies automatically, keeping your bill lower than it would be under the standard multiplier.
To qualify for SBRR, you must generally occupy only one property in England (or, if you occupy multiple properties, each additional property must have an RV below £2,899 and the total RV across all properties must be under £28,000 in London or £20,000 elsewhere).
Retail, Hospitality and Leisure Discount 2025/26
The Retail, Hospitality and Leisure (RHL) relief is a separate, temporary discount available to eligible properties in England. For 2025/26, qualifying properties receive a 40% discount on their business rates bill, up to a maximum RV of £110,000. This has been a significant support for the high street. Note that the discount was reduced from 75% in 2024/25 to 40% in 2025/26.
Eligible property types include: shops (including garden centres and petrol stations); cafes, restaurants, pubs, bars, and hotels; cinemas, gyms, and leisure centres. The discount is applied automatically by local councils — you do not need to apply separately. The relief counts towards the UK Subsidy Control MFA cap (£315,000 over three years).
How Rateable Value Is Set
The Valuation Office Agency (VOA) sets rateable values for all non-domestic properties in England and Wales. The RV is based on an estimate of the annual rent the property could achieve at a fixed valuation date. The most recent revaluation took effect from 1 April 2023, based on rental values as at 1 April 2021. Before that, the previous revaluation was in 2017. Revaluations happen every three years now (previously every five years).
After the 2023 revaluation, some businesses saw large increases in their rateable values (particularly in prime retail and logistics locations), while others saw reductions. The government introduced Transitional Relief to phase in large increases gradually over the 2023 rating list period.
How to Appeal Your Rateable Value
If you believe your rateable value is too high, you can challenge it through the Check, Challenge, Appeal (CCA) process managed by the VOA. The three stages are:
- Check: Review the VOA’s facts about your property. If there are factual errors (floor area, description), flag them. Corrections can reduce the RV quickly.
- Challenge: If you disagree with the valuation itself, submit a formal challenge with evidence (e.g. comparable rental evidence, property condition reports). The VOA must respond within 18 months.
- Appeal: If unsatisfied with the Challenge outcome, appeal to the independent Valuation Tribunal. Hearings are heard by a panel. You can represent yourself or use a rating surveyor.
Rating surveyors typically charge a percentage of achieved rates savings. For substantial properties, professional advice often pays for itself many times over.
Other Business Rates Reliefs to Know
- Mandatory Charity Relief: Registered charities and community amateur sports clubs (CASCs) receive 80% mandatory relief on properties used for charitable purposes. The local council may grant an additional 20% discretionary relief, making the total up to 100%.
- Empty Property Relief: Most properties receive 3 months of rates-free relief when they become empty. Industrial properties receive 6 months. After the initial exemption, 100% of the full rate is normally charged on the empty property.
- Rural Rate Relief: Properties in designated rural areas (settlements under 3,000 population) may qualify for 100% mandatory relief if they are the only village shop, post office, pub, or petrol station — with an RV up to certain limits.
- Hardship Relief: Local councils have discretion to grant relief where a business is suffering financial hardship and it is in the public interest. This is rarely granted but can be sought in extreme circumstances.
- Transitional Relief (2023 revaluation): Phases in large increases from the 2023 revaluation over several years. Properties that saw RV increases of more than 5% may have their bill rise capped at a set annual percentage.
Scotland, Wales, and Northern Ireland: Different Rules
Business rates are devolved. Scotland, Wales, and Northern Ireland each set their own multipliers, relief thresholds, and revaluation dates:
- Scotland: Small Business Bonus Scheme (SBBS) provides 100% relief for properties with RV up to £12,000, with tapered relief up to £20,000. Properties over £100,000 RV do not benefit from SBBS.
- Wales: Small Business Rates Relief in Wales provides 100% relief for properties with RV up to £6,000, with tapered relief up to £12,000. Properties with RV up to £15,000 also receive the small business multiplier.
- Northern Ireland: The rating system differs significantly — rates are based on capital value (not rental value) for non-domestic properties since 2007, with district and regional rates set separately.
Always verify current thresholds directly with your local billing authority or the relevant valuation agency in your nation.
Frequently Asked Questions: Small Business Rates Relief
Expert Reviewed — Uses 2025/26 England business rates multipliers (49.9p small business, 54.6p standard) and SBRR thresholds from DLUHC. Last verified: March 2026.