Business rates relief in England, checking your 2026/27 bill
Overview
Business rates are charged on most non-domestic property in England. Your local council issues and collects the bill. The Valuation Office (VO), now part of HM Revenue & Customs (HMRC), determines the property’s rateable value (RV). The former Valuation Office Agency joined HMRC on 1st April 2026.
Relief can reduce the bill. Eligibility generally depends on the property, its use, rateable value, occupation and the liable ratepayer, rather than simply whether the business is a sole trader or limited company.
As at 14th October 2026, eligible businesses can still receive full Small Business Rate Relief on a property with RV of £12,000 or less. Relief tapers to zero at £15,000. There is no confirmed full-relief threshold of £17,096 in the official guidance checked.
This guide covers England only and focuses on 2026/27, from 1st April 2026 to 31st March 2027. Scotland, Wales and Northern Ireland have different rules. Check your council’s requirements and current official guidance before making a claim.
Detailed Content
Small Business Rate Relief
An eligible business using one property receives:
100% relief where RV is £12,000 or less.
Tapered relief where RV is above £12,000 but below £15,000.
No ordinary Small Business Rate Relief at RV of £15,000 or more.
For example, RV of £13,500 gives 50% relief. The thresholds relate to rateable value, not turnover, profit or the amount of rent paid.
Contact the council to confirm eligibility and how to obtain relief. Do not assume it has already been included in your bill.
What if you use more than one property?
Additional-property exceptions can preserve relief on the main property.
If you were already receiving relief and acquired a second property, relief on your main property continues for:
12 months if you acquired the second property before 27th November 2025.
36 months if you acquired it on or after 27th November 2025.
After that period, relief can continue on the main property if none of your other properties has RV above £2,899 and the total RV of all properties is below £20,000, or £28,000 in London. The main property must still satisfy the relevant relief conditions.
Tell your council when you acquire another property or your circumstances change.
The 2026/27 multipliers
A multiplier is applied to RV to calculate the basic annual charge before reliefs and other adjustments. The following England multipliers apply outside the City of London’s separate arrangements:
Property’s rateable value
Non-retail, hospitality or leisure
Qualifying retail, hospitality or leisure
Below £51,000
43.2p
38.2p
£51,000 to below £500,000
48.0p
43.0p
£500,000 or more
50.8p
50.8p
For calculation purposes, 43.2p means multiplying RV by 0.432, not by 43.2.
Being outside Small Business Rate Relief does not automatically mean using the standard multiplier. A property below £51,000 can use a small business multiplier even without that relief.
The final bill may also reflect reliefs, transitional protection, supplements and other adjustments. Ask the council to confirm the calculation rather than relying solely on RV multiplied by the headline multiplier.
Retail, hospitality and leisure
Eligible occupied retail, hospitality and leisure properties received 40% relief for 2025/26, subject to a £110,000 cash cap across the business’s eligible properties, including relevant connected businesses, and subsidy-control conditions.
That scheme covered charges up to 31st March 2026. It does not provide 40% relief on 2026/27 charges. Qualifying properties below £500,000 now use the lower retail, hospitality and leisure multipliers instead.
If you believe an earlier bill omitted relief or needs correcting, ask the council about its historical scheme and any applicable deadlines. The end of the billing year does not, by itself, settle whether a retrospective correction is possible.
Pubs and live music venues
Eligible occupied pubs and live music venues can receive a further 15% reduction for 2026/27. This can apply alongside transitional or supporting small business relief.
Not every licensed venue qualifies. Eligible pubs must meet conditions including being open to the public, allowing drinking without requiring food, and permitting drinks to be bought at a bar. Live music venues must mainly be used for live music performances to entertain an audience; premises mainly used as nightclubs or theatres do not qualify under this scheme.
Ask your council to confirm eligibility and how the relief has been applied.
Rural Rate Relief
A qualifying occupied property in an eligible rural area with a population below 3,000 can receive 100% relief if it is:
The only village general store, food shop or post office, with RV up to £8,500.
The only public house or petrol station, with RV up to £12,500.
Different types of qualifying business can coexist in the same area. The council confirms the eligible area, property use and claim requirements.
Charitable, discretionary and hardship relief
Qualifying charities and HMRC-registered community amateur sports clubs can normally receive 80% mandatory relief for qualifying occupied premises. The council may award discretionary relief against some or all of the remaining bill.
Most private schools are excluded from mandatory charitable relief; any specialist exception needs separate checking. Small Business Rate Relief and charitable rate relief cannot be claimed together on the same property.
Councils can also consider local discretionary discounts and relief for some non-profit organisations. Hardship relief requires the council to be satisfied both that the ratepayer would face financial difficulties without relief and that granting it is in the interests of local people. Financial difficulty alone does not guarantee an award.
Revaluation and protection against bill increases
The rating list effective from 1st April 2026 is based on open-market rental values at 1st April 2024. RV is a valuation for rating purposes, not necessarily your actual rent or final bill.
Transitional relief phases in qualifying increases caused by revaluation. Councils apply it automatically where the conditions are met.
Supporting small business relief may also protect businesses whose bills increased because of revaluation and which lost some or all of their Small Business Rate Relief, Rural Rate Relief, retail, hospitality and leisure relief, or 2023 supporting small business relief.
For eligible businesses in 2026/27, the increase is limited to the greater of £800 or the applicable percentage cap. The percentage is 5%, 15% or 30%, depending on the RV band. This is not a universal £800 maximum. Ask the council to confirm the applicable band and comparison with the 2025/26 bill.
Autumn Budget 2026
As at 14th October 2026, the Autumn Budget is scheduled for 28th October 2026 and has not yet taken place.
The official guidance checked does not confirm an SBRR full-relief threshold of £17,096. Treat speculation separately from announced policy, enacted rules and their effective dates. Recheck the position after the Budget.
Checking a bill and challenging rateable value
Contact the council about the liable ratepayer, multiplier, reliefs, payment arrangements and bill calculation.
Contact the Valuation Office about property details and rateable value. Through your business rates valuation account, add the property and complete a Check before submitting a Challenge. If you disagree with the challenge outcome, an appeal is made to the Valuation Tribunal, not simply another appeal to the council or Valuation Office.
Use relevant evidence, such as floor plans, lease details, comparable rental evidence and corrections to the property description. Follow the deadlines for your case. A challenge does not guarantee a reduction and can reveal that a valuation should increase.
Continue paying as billed while a relief request or valuation challenge is pending, unless the council agrees a different arrangement.
Step By Step Procedure
Check the latest bill for the property, liable ratepayer, RV, billing period, multiplier, reliefs and adjustments.
Compare the RV and property details with the current rating list. Keep leases, plans and relevant rental evidence.
Ask the council about Small Business Rate Relief and any additional-property exceptions, rural or charitable relief, local discounts, hardship relief and revaluation protection.
For retail, hospitality, leisure, pub or live music premises, confirm both the multiplier and any separate relief eligibility.
If property details or RV appear wrong, use the business rates valuation account and follow Check, Challenge and, where appropriate, Appeal. Consider a qualified rating adviser for complex cases and review fees and contract terms before appointing one.
Keep paying under the existing bill unless the council confirms otherwise. Retain correspondence and record deadlines.
Report changes in occupation, premises or business use promptly. Recheck the rules after the Budget and when preparing the next annual forecast.
Frequently Asked Questions and Answers
Has the full-relief threshold risen to £17,096?
No such increase is confirmed in the official guidance checked on 14th October 2026. Eligible businesses receive full relief at RV up to £12,000, tapering to zero at £15,000.
Can I receive SBRR with two properties?
Possibly. Relief on the main property can continue temporarily after acquiring a second property, with a 36-month period for acquisitions on or after 27th November 2025. Smaller additional properties may also fall within the continuing exceptions. Check all conditions with the council.
Does RV of £15,000 or more mean paying the standard multiplier?
No. You receive no ordinary SBRR at that level, but properties below £51,000 generally use the relevant small business multiplier. Qualifying retail, hospitality and leisure premises have separate lower multipliers.
Can I receive 40% retail, hospitality and leisure relief in 2026/27?
Not under the former 2025/26 scheme. Lower multipliers apply to qualifying properties in 2026/27. Eligible pubs and live music venues can also receive 15% relief. Earlier-year corrections should be discussed separately with the council.
Is an increase always capped at £800?
No. For eligible supporting small business relief cases in 2026/27, the cap is the greater of £800 or the relevant percentage increase. Other adjustments and changes in circumstances can affect the final bill.
Who deals with relief and valuation disputes?
The council deals with relief and billing. The Valuation Office deals with rateable value and property information. Appeals against challenge outcomes go to the Valuation Tribunal.
Can I stop paying while challenging the valuation?
No, not simply because a challenge is pending. Continue following the bill’s payment terms unless the council agrees otherwise. Contact it promptly if payment is difficult.
How can 360 Accounts & Bookkeeping help?
We can help you review the bill against your business records, identify relief questions to raise with the council and update your cash-flow forecast. Complex valuation disputes may require a specialist rating adviser. Bring your current and previous bills, lease details and information about any other premises.