Business rates can be a major expense for shops, cafés, offices, pubs and other commercial premises. For the 2026/27 tax year, several forms of Business Rates Relief may reduce what eligible businesses pay, but the rules depend on the property’s rateable value, its use and whether its bill has increased following the 2026 revaluation.
Small businesses in England should first check Small Business Rate Relief, Supporting Small Business Relief and Transitional Relief. Eligible pubs and live music venues can also claim a separate 15% reduction for 2026/27. Some businesses may qualify for charitable, rural or locally funded relief instead.
This guide explains the main schemes, who may qualify, how to check your bill and what to do if you believe a discount is missing. The rules described for England should not automatically be applied to Scotland, Wales or Northern Ireland.
What Is Business Rates Relief?
Business rates are a property tax charged on many non-domestic premises, including shops, offices, warehouses, restaurants and workshops. Your local council calculates the bill using the property’s rateable value and the relevant business rates multiplier, then applies any reliefs you qualify for.
A property’s rateable value is an estimate of its annual rental value, assessed by the Valuation Office. It is not the amount you pay in business rates.
Business rates relief reduces the bill or limits how quickly it can rise. Some schemes are based on the size of the property’s rateable value, while others depend on the type of business, how the property is used or changes following a revaluation.
1. Small Business Rate Relief
Small Business Rate Relief (SBRR) is one of the first schemes to check if you operate from a small commercial property in England.
For a business using one property, the main thresholds are:
- Rateable value of £12,000 or less: eligible properties receive 100% relief.
- Rateable value between £12,001 and £15,000: relief tapers down gradually from 100% to zero.
- Rateable value of £15,000 or more: the property does not qualify for this relief under the standard threshold rules.
For example, a property with a rateable value of £13,500 receives 50% relief under the standard scheme. The final amount payable will depend on the rates calculation and any other applicable adjustments.
What if your business has more than one property?
Owning or using a second business property does not always mean you lose relief immediately. Special rules allow qualifying businesses to retain relief on their main property for a limited period after acquiring another property.
Tell your council about additional premises and ask it to confirm your eligibility. Do not assume that the same discount applies automatically to every property.
You can find the official rules on the Small Business Rate Relief page.
2. Supporting Small Business Relief for 2026/27
Supporting Small Business Relief (SSBR) is designed to help eligible ratepayers whose bills rise because they lose some or all of certain existing reliefs following the 2026 revaluation.
You may qualify if your property’s bill has increased because you have lost some or all of:
- Small Business Rate Relief
- Rural Rate Relief
- The previous Retail, Hospitality and Leisure Relief
- The 2023 Supporting Small Business Relief scheme
For 2026/27, the scheme limits the increase compared with the relevant 2025/26 bill to £800 or the applicable Transitional Relief percentage cap, whichever is greater. The percentage cap depends on the property’s rateable value and whether it is in London.
| Rateable value | 2026/27 percentage cap |
|---|---|
| Up to £20,000, or £28,000 in London | 5% |
| £20,001–£100,000, or £28,001–£100,000 in London | 15% |
| Over £100,000 | 30% |
These are limits on eligible bill increases, not guaranteed discounts of those percentages. If your bill has not increased in the way covered by the scheme, you may not qualify.
Eligible ratepayers should have their bills adjusted by the council. Check the calculation if you believe the relief has been missed, and ask the council to explain how it has assessed your eligibility.
Official details are available in the government’s Supporting Small Business Relief guidance.
3. Transitional Relief After the 2026 Revaluation
The 2026 revaluation updated the rateable values used to calculate business rates in England. A higher rateable value can increase a bill, although the final amount also depends on the applicable multiplier and any reliefs.
Transitional Relief helps eligible properties adjust to increases resulting from the revaluation by phasing in those increases over time. The 2026/27 caps are generally 5%, 15% and 30%, depending on rateable value and the relevant London threshold. Different caps apply in later years. <Cite refs={[“turn157366search3″,”turn157366search4”]}/>
This is particularly relevant if your premises have become more valuable on the new rating list. It is also worth checking if your business has lost a previous relief, because Transitional Relief and Supporting Small Business Relief address related but different circumstances.
You do not normally need to submit a separate claim for Transitional Relief: the council adjusts the bill when the property qualifies. Check the calculation on your bill and contact the council if the adjustment appears to be missing.
Read the official Transitional Relief guidance for the detailed rules.
4. New Business Rates Support for Pubs and Live Music Venues
Eligible pubs and live music venues in England can receive 15% Business Rates Relief for 2026/27, running from 1 April 2026 to 31 March 2027. This relief is available on top of qualifying Transitional Relief or Supporting Small Business Relief. The government has also announced that eligible bills will be frozen in real terms for the following two years.
To qualify as a pub, a property must meet the government’s criteria. It must be open to the general public, allow free entry apart from occasional entertainment, permit drinking without requiring customers to buy food, and allow drinks to be purchased at a bar.
A live music venue must be used wholly or mainly for live music performances for an audience. A property used mainly as a nightclub or theatre does not qualify under this scheme.
Restaurants, cafés, hotels and other businesses should not assume they qualify simply because they sell food or drinks.
Councils administer the relief. If your business meets the criteria but your bill does not show the reduction, contact your local authority and ask how to apply. See the official Pubs and Live Music Venues Relief guidance.
5. Other Types of Business Rates Relief
Your business may qualify for another scheme depending on its purpose, location or circumstances.
Rural Rate Relief
Certain businesses in eligible rural settlements with a population below 3,000 may receive 100% relief. The rules cover qualifying village shops, food shops, post offices, pubs and petrol stations, subject to rateable-value and other conditions. <Cite refs={[“turn367524search1”]}/>
Charitable Rate Relief
A property mainly used for charitable purposes by an eligible charity or community amateur sports club may receive up to 80% relief. The council may also offer additional discretionary relief in some cases. Small Business Rate Relief and charitable relief cannot be claimed for the same property at the same time.
Discretionary or Hardship Relief
Councils may offer additional help in certain circumstances, including some cases of financial hardship or where a business benefits the local community. These schemes depend on the relevant rules and council’s decision, so contact your local authority to ask what is available.
A complete list of schemes and eligibility guidance is available through the government’s Business Rates Relief directory.
6. What Happened to the 40% Retail, Hospitality and Leisure Relief?
The previous Retail, Hospitality and Leisure (RHL) Relief scheme provided eligible occupied properties with 40% relief in 2025/26, subject to a cash cap of £110,000 per business.
That temporary scheme ended for new claims from 1 April 2026. For 2026/27, qualifying retail, hospitality and leisure properties instead use lower property-specific multipliers. The standard multipliers are also different for properties with higher rateable values.
This means that a shop or café should not expect the old 40% discount to appear on its new bill. However, it may qualify for Supporting Small Business Relief if the 2026 revaluation caused it to lose some or all of its previous relief.
How to Check and Claim Business Rates Relief
Use these steps to check whether your business is paying the correct amount.
- Find your rateable value. Use the government’s business rates valuation service to check the value recorded for your premises.
- Review your 2026/27 bill. Check the rateable value, multiplier and any reliefs shown.
- Identify the relevant scheme. Start with Small Business Rate Relief if you operate from a low-value property. If your bill has risen after revaluation or you have lost a previous discount, check Transitional Relief and Supporting Small Business Relief.
- Contact your local council. Councils issue bills, administer most reliefs and explain how to apply. Some discounts are applied automatically; others may require you to contact the council or submit information.
- Check the result. Keep copies of your bill and correspondence. If you think the rateable value itself is wrong, use the official valuation service to review or challenge it.
Do not stop paying your bill simply because you have queried a relief or valuation. Follow the payment instructions from your council unless it confirms a change.
Does Business Rates Relief Work the Same Across the UK?
No. The rules in this article mainly apply to England. Business rates are devolved, and Scotland, Wales and Northern Ireland have their own arrangements, rates and relief schemes.
If your business is outside England, check the guidance for the relevant nation and contact the local authority responsible for your premises. Do not rely on English rateable-value thresholds or relief rules without confirming that they apply.
Frequently Asked Questions
Can a small business get 100% Business Rates Relief?
Yes. In England, a qualifying business using one property with a rateable value of £12,000 or less can receive 100% Small Business Rate Relief. Eligibility depends on the property’s circumstances and the applicable rules.
Do I need to apply for Business Rates Relief?
It depends on the scheme. Some reliefs are applied automatically by the council, while others may require you to contact the council or provide supporting information. Check the specific rules and your bill rather than assuming a discount will be applied.
Can I claim more than one type of relief?
Some schemes can operate together, but not all can be combined. For example, eligible pubs and live music venues can receive their 15% relief alongside qualifying Transitional Relief or Supporting Small Business Relief, while Small Business Rate Relief and charitable relief cannot be applied to the same property at the same time.
Is the old 40% retail and hospitality discount available in 2026/27?
No. The previous 40% RHL Relief scheme ended for new claims from 1 April 2026. Eligible properties instead use the new lower multipliers, and some businesses may qualify for Supporting Small Business Relief if they lost previous relief following revaluation.
Final Takeaway
The most useful starting point is to check your property’s rateable value and read your 2026/27 bill carefully. Small Business Rate Relief may remove the bill entirely for some low-value properties, while Transitional Relief and Supporting Small Business Relief can protect eligible businesses facing increases after revaluation.
If you run a pub, live music venue, rural shop or charitable organisation, check the additional schemes that may apply. Your local council can confirm your eligibility and explain what to do if a relief is missing.