Small business rates relief
Check England's small business rates relief thresholds, 2026/27 multipliers and second-property rules, with separate guidance for Scotland, Wales and Northern Ireland.
In one sentence
In England, small business rates relief can reduce the bill to zero for a business using one property with a rateable value of £12,000 or less, with relief reducing gradually to zero at £15,000.
Quick answer
- England: one property with a rateable value of £12,000 or less gets 100% relief; relief reduces gradually to zero at £15,000.
- The 2026/27 small business multiplier is 43.2p for rateable values below £51,000, even where small business rate relief does not apply.
- A second property can affect relief; the council checks eligibility and handles applications.
- Scotland, Wales and Northern Ireland have separate schemes and thresholds.
The short answer: England's thresholds
Small business rates relief reduces a business rates bill. In England, a business using just one property with a rateable value of £12,000 or less pays no business rates. Relief reduces gradually above £12,000 and reaches zero at £15,000.
The council decides eligibility, sends the bill and collects payments. These are the England rules for 2026/27; check the scheme for the nation where your premises are located.
Which nation's scheme applies?
England, Scotland, Wales and Northern Ireland have different schemes. The location of the property determines which rules to check. England is covered first below, followed by short sections for the other three nations.
England: who qualifies and what you get
The main conditions are a rateable value below £15,000 and a business using only one property. There are exceptions for businesses using more than one property, explained below.
| Rateable value | Small business rate relief |
|---|---|
| £12,000 or less | 100% if this is the business's only property |
| £12,001 to £15,000 | Reduces gradually from 100% to 0% |
| £13,500 example | 50% off the bill |
| £14,000 example | 33% off the bill |
These thresholds and the two percentage examples come from GOV.UK's small business rate relief guidance. You cannot receive this relief and charitable rate relief at the same time. The council decides which applies.
Worked examples for 2026/27
These examples assume one property in England and the 43.2p small business multiplier:
- £13,500 rateable value: £13,500 × 0.432 = £5,832 before relief. With 50% relief, the example bill is £2,916, a saving of £2,916.
- £10,000 rateable value: £10,000 × 0.432 = £4,320 before relief. With 100% relief, nothing is payable.
- £15,000 rateable value: £15,000 × 0.432 = £6,480 before relief. GOV.UK requires a rateable value below £15,000, so no small business rate relief applies at this level.
These are examples, not a calculation of your entitlement. The actual bill, any transitional relief and local rules come from the council.
2026/27 multipliers: what changed on 1 April 2026?
A multiplier converts rateable value into a bill before relief. Multiply the rateable value by the multiplier, then take away any relief. The small business multiplier can apply even when you do not qualify for small business rate relief.
| England: 1 April 2026 to 31 March 2027 | Multiplier |
|---|---|
| Below £51,000: small business | 43.2p |
| £51,000 to £499,999: standard | 48p |
| £500,000 or more | 50.8p |
| Eligible retail, hospitality and leisure: below £51,000 | 38.2p |
| Eligible retail, hospitality and leisure: £51,000 to £499,999 | 43p |
Multipliers may differ in the City of London. Check GOV.UK's business rates estimate guidance for the applicable multiplier.
2026/27 differs from earlier years. From 1 April 2026, lower multipliers replaced retail, hospitality and leisure relief; new claims for that relief cannot be made. Pubs and live music venues relief may still apply.
The latest revaluation took effect in England and Wales on 1 April 2026, using open market rental values from 1 April 2024. Businesses losing some or all of their small business rate relief because of it may qualify for supporting small business relief.
Other England business rates reliefs include rural rate relief, charitable rate relief, empty property relief (3 months), hardship relief, transitional relief, and pubs and live music venues relief.
What if you use more than one property?
Getting a second property does not necessarily end relief immediately. You keep relief on your main property for:
- 12 months if you got the second property before 27 November 2025.
- 36 months if you got it on or after 27 November 2025.
After that period, relief on the main property can continue only if both conditions apply:
- None of the other properties has a rateable value above £2,899.
- The total rateable value of all properties is less than £20,000, or £28,000 in London.
Tell the council when you get another property so it can assess the effect on relief.
How to apply and what to tell the council
Some relief is automatic, but you may need to apply. Contact your local council about business rates to check eligibility and its application process.
Tell the council if your property becomes empty, you get another property, or you extend or renovate premises in a way that increases their value. Also report a change in the nature of your business or a move.
Relief can change when circumstances change, including falling if rateable value rises. You will usually pay the new rate from the day of the change. Some changes must also be reported to the Valuation Office (VO).
You can manage business rates yourself. An agent or rating surveyor is optional, and advice may be chargeable from the start.
Challenging your rateable value
If you think the rateable value is wrong, challenge it with the Valuation Office through your business rates valuation account. The council deals with relief; the Valuation Office deals with the valuation.
Home-based businesses
You do not usually pay business rates if you use a small part of your home for business, such as a bedroom office, and sell goods by post.
You may pay business rates as well as Council Tax where the property is partly business and partly domestic, customers visit to buy, you employ people there, or you have changed the home for business use. Contact the Valuation Office to check. See GOV.UK's introduction to business rates.
Small business rates relief in Scotland
Scotland uses the Small Business Bonus Scheme. The combined rateable value of all business premises you occupy must be £35,000 or less. Each property must have a rateable value of £20,000 or less and be actively occupied.
For one property, relief is 100% up to £12,000. From £12,001 to £15,000 it scales from 100% to 25%; from £15,001 to £20,000 it scales from 25% to 0%.
Apply to your local council and declare all your business properties in Scotland. You must apply for all reliefs except Revaluation Transitional Relief, which is automatic. You do not need to pay anyone to apply. See mygov.scot's application guidance and available reliefs.
Small Business Rates Relief in Wales
In Wales, rateable values up to £6,000 receive 100% relief. From £6,001 to £12,000, relief tapers from 100% to zero. There is a maximum of two properties per business in each local authority. Apply to your local authority.
For 2026/27, Welsh multipliers are 0.350 for small to medium retail shops below £51,000, 0.502 standard and 0.515 higher for properties above £100,000. See Business Wales guidance for the Welsh rules.
Small Business Rate Relief in Northern Ireland
Northern Ireland has its own scheme, administered by Land & Property Services (LPS). Relief depends on net annual value. See nibusinessinfo.co.uk's business rates help for the scheme and other reliefs.
Continue paying rates while LPS considers an application. LPS refunds any overpayment if the application succeeds.
Relief and company costs
Business rates are a premises cost. Include them when planning company costs and read our allowable Corporation Tax deductions guide for the separate tax treatment of expenses.
An accountant can help you plan for premises costs but cannot grant relief. RR Accountants is not the council or the Valuation Office; the council decides relief.
For other early business decisions, use our first-year checklist, sole trader versus limited company guide and company formation guide.
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Book a call →Frequently asked questions
What is small business rates relief?
It is a reduction in a business rates bill. In England, a business using only one property with a rateable value of £12,000 or less gets 100% relief. Relief reduces gradually to zero at £15,000. The council decides eligibility.
How do I apply for small business rates relief?
Contact your local council to check eligibility and find out its application process. Some relief is automatic, but you may need to apply. Tell the council about changes to your premises or business that could affect relief.
Is there small business rates relief in Scotland?
Scotland has the Small Business Bonus Scheme. The combined rateable value of premises you occupy must be £35,000 or less, each property must be £20,000 or less and actively occupied. For one property, relief is 100% up to £12,000 and scales down to zero at £20,000. Apply to your local council and declare all your business properties in Scotland.
Can I get small business rates relief on a second property?
England's second-property rules preserve relief on the main property for 12 months if you got the second property before 27 November 2025, or 36 months if on or after that date. After that, none of the other properties can have a rateable value above £2,899, and the total must be less than £20,000 (£28,000 in London). Ask the council to assess eligibility.
Has small business rates relief changed in 2026?
The £12,000 and £15,000 England thresholds still apply. The 1 April 2026 revaluation may affect entitlement, and supporting small business relief may help where relief was lost because of it. For 2026/27 the small business multiplier is 43.2p; lower retail, hospitality and leisure multipliers replace the previous relief. The 36-month main-property protection applies when a second property was obtained on or after 27 November 2025.
Key terms
- Rateable value
- The rental value assigned to a property for calculating business rates; it is the figure used to assess small business rate relief thresholds.
- Multiplier
- The yearly figure multiplied by rateable value to estimate business rates before relief. A multiplier of 43.2p means multiplying by 0.432.