Small Business Rate Relief 2025/26 | Trueman Brown Accountants

Multiple properties usage

If your business uses more than one property, you may still qualify provided none of your other properties has an RV above £2,899, and the total RV of all your properties (including the main one) does not exceed £20,000 (or £28,000 in London).

How the relief is calculated under small business rate relief

Under the small business rate relief scheme for 2025/26:

• For a property with RV of £12,000 or less, you receive 100% relief (i.e., no business rates payable on that property).

• For a property with RV between £12,001 and £15,000, the relief applies on a sliding scale – the higher the RV, the lower the relief. For example, an RV of £13,500 might attract c.50% relief.

• If you don’t qualify for full relief but your RV is up to £50,999 then you may still benefit from the small business multiplier when your bill is calculated.

What’s changed for 2025/26?

A few updates for the 2025/26 rating year are worth noting in the context of small business rate relief and general business rates:

• The small business non-domestic rating multiplier has been frozen at 49.9 p for 2025/26. This means that for properties with RV up to £50,999, the lower multiplier applies.

• The standard multiplier (for properties above that threshold) has been uprated to 55.5 p for 2025/26.

• The revaluation that took effect from 1 April 2023 remains in place; rateable values are based on the market at 1 April 2021 and transitional relief caps still apply for properties newly in scope.

• Note: While this article focuses on small business rate relief, there is also a separate relief for retail, hospitality and leisure properties which has been reduced to 40% for 2025/26, capped at £110,000 per business.That change does not directly change the basic rules for small business rate relief but is relevant for many smaller enterprises operating in those sectors.

Special considerations (holiday lets, change of use, etc)

If you operate a holiday let or guest house, you’ll need to check specific eligibility for business rates and hence whether you can access small business rate relief.

For example, from April 2023 holiday lets must meet certain letting thresholds (e.g., let at least 70 nights and available for at least 140 nights) to be treated as business property rather than residential.

If you take on a second property or move, your eligibility for small business rate relief might change – for example, you may lose relief or only qualify for transitional relief.

Always report changes in circumstances promptly.

How to claim and manage your small business rate relief

• Contact your local billing authority (your local council) and ask for the forms to apply for small business rate relief.

• Many councils award the relief automatically if eligible, but you should check your bill to ensure it’s applied.

• If circumstances change (e.g., you acquire another property, your property becomes empty, your RV increases) you must inform the council or the VOA, as this may affect your entitlement to small business rate relief.

• Even if you don’t get full relief under the scheme, your property may benefit from the lower small business multiplier if RV is under threshold, reducing your bill.

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How Trueman Brown can help you

If you’d like professional help to check whether your business qualifies for small business rate relief, or to review your business rates bill and optimise your entitlement, our team at Trueman Brown is ready to assist.

We can:

• Review your property’s rateable value, assess eligibility for relief and check for any historic relief you may have missed

• Guide you through the application process for small business rate relief with your local council

• Monitor changes in your circumstances (e.g., property acquisition, occupant changes, RV reviews) to ensure your relief remains valid

• Advise on other business-rates reliefs (such as retail, hospitality & leisure) that might apply in tandem

Get in touch today — email: mark@truemanbrown.co.uk or call 01708 397262. We’ll be glad to help you navigate the rules for small business rate relief and ensure you aren’t over-paying business rates.

FAQs on small business rate relief

Q: What is the definition of a “property” for the purposes of small business rate relief?
A: A property is any hereditament listed on the business rates list. If your business uses more than one hereditament, you may still qualify for relief provided the other properties meet the threshold for multiple-property occupancy.

Q: If my business takes on a second property, do I instantly lose the relief?
A: Not necessarily. If you have been receiving small business rate relief on your main property and then acquire another, you may continue to receive it for 12 months. After that you might continue only if the extra property’s RV is £2,899 or less and the total RV of all properties is within the threshold.

Q: If my property’s rateable value increases after revaluation, will that affect my relief?
A: Yes. The eligibility and amount of small business rate relief are tied to the RV and number of properties. A higher RV may reduce or eliminate your relief entitlement – always check your bill and speak to the council.

Q: Do I need to apply each year for small business rate relief?
A: Usually once you have the relief it continues until circumstances change (e.g., property vacated, new property taken, RV change). However you should review eligibility annually and inform the council if anything changes.

Q: Can I claim small business rate relief and other reliefs at the same time?
A: You cannot claim two mandatory reliefs for the same property (for example charitable rate relief and small business rate relief). But you may benefit from other reliefs applicable to other properties or in other circumstances.

Q: What is the small business rate multiplier and how does that relate?
A: For 2025/26 the small business multiplier is 49.9p. If your property’s RV is up to £50,999 then your business rates bill will be calculated using that lower multiplier (even if you don’t get full relief). This works in tandem with eligibility for small business rate relief.

Q: Where can I find more detailed guidance?
A: Detailed information is available on the Government website (Gov.uk) under “Business Rates Relief” and by checking your local council’s business rates pages.

If you’d like us to review your business rates bill or check your eligibility for small business rate relief, just drop us a message at mark@truemanbrown.co.uk or give us a ring on 01708 397262.
We look forward to helping your business make the most of the reliefs available.