Some ratepayers are eligible for relief on the grounds that they are a small business. You will be classed as a small business if:
- You have only one property in England on which you are liable (wholly or jointly) for the payment of business rates. The rateable value of that property is £50,999 or less and remains below £51,000 throughout the financial year and
- The property is occupied and you are not entitled to claim any other mandatory relief
If you qualify, you will have your rates calculated using a small business multiplier or if you meet the criteria of retail, hospitality or leisure your rates will be calculated using the small business RHL multiplier. Details of the multipliers can be found how business rates are calculated.
Additional relief
Properties with a rateable value of up to and including £15,000 may receive additional relief depending on the rateable value of the property:
- Rateable value up to and including £12,000 - 100% relief
- Rateable value £12,001 up to and including £15,000 - relief reducing from 100% to 0% (4% for every £120 above £12,001)
*If the property has a rateable value of between £15,001-£50,999, no additional relief is applied, however, you will pay business rates on the small business multiplier or if you meet the criteria of retail, hospitality or leisure your rates will be calculated using the small business RHL multiplier.
If you use more than one property
You can still get small business rate relief if your main building has a rateable value less than £15,000, your other buildings each have a rateable value below £2,900, and the total of all buildings is less than £20,000.
The relief is calculated on the rateable value of the main building only.
If you've occupied a second property since 27 November 2025, which would mean you no longer qualify for small business rate relief, you'll continue to receive your existing relief for 3 years from the date you occupied that second property.
This extends the previous one year grace period that was announced in the Autumn 2025 Budget.
*If you are liable for other properties and their rateable value is £2,899 or less you will still need to pay business rates, however, this will not affect your eligibility for small business rate relief on your main property, provided that the total of all properties' rateable values is £19,999 or less.