Business rates can be a major expense for small businesses renting or occupying commercial premises. In the 2026–27 tax year, businesses in the UK may qualify for several types of business rates relief, but eligibility depends on the property, its rateable value, its use and where it is located.
In England, the 2026 revaluation has brought new business rates multipliers and updated support for businesses facing higher bills. Small Business Rate Relief, Transitional Relief, Supporting Small Business Relief and specific relief for pubs and live music venues are among the options worth checking. The rules differ in Scotland, Wales and Northern Ireland, so businesses should confirm the arrangements that apply to their premises.
What Is Business Rates Relief?
Business rates relief is a reduction or exemption from the tax charged on many non-domestic properties, including shops, offices, restaurants, workshops and warehouses.
Local authorities generally issue business rates bills, collect payments and determine eligibility for relief. Depending on the scheme, support may be automatic or require the business to contact its council.
The amount payable usually depends on the property’s rateable value, the applicable business rates multiplier and any reliefs available. The Valuation Office Agency assesses rateable values in England and Wales, while different arrangements apply in Scotland and Northern Ireland. Official government guidance explains the main schemes in England.
1. Small Business Rate Relief
Small Business Rate Relief (SBRR) is one of the first schemes a small business should check.
In England, a business occupying a single property can generally receive:
- 100% relief if the property’s rateable value is £12,000 or less.
- Tapered relief if its rateable value is between £12,001 and £15,000.
- No SBRR once the rateable value reaches £15,000, although another type of support may be available.
For example, a qualifying business with a rateable value of £13,500 receives 50% relief under the standard scheme. A property valued at £14,000 receives approximately 33% relief. These figures relate to the SBRR calculation, not necessarily the final bill after other adjustments. Source: GOV.UK
Businesses with more than one property may still qualify under specific conditions. Generally, the rateable value of each additional property must not exceed £2,899, and the combined rateable value must be below £20,000, or £28,000 in London.
How to claim: Contact your local council to check eligibility and request relief if it is not already reflected in your bill.
2. Supporting Small Business Relief in 2026–27
Supporting Small Business Relief is particularly relevant to businesses whose bills increased following the revaluation on 1 April 2026.
The scheme is designed for eligible businesses that have lost some or all of their previous Small Business Rate Relief, Rural Rate Relief, Retail, Hospitality and Leisure relief, or 2023 Supporting Small Business Relief.
For 2026–27, eligible increases are limited to the greater of £800 or the relevant percentage cap:
| Rateable value | Maximum increase for 2026–27 |
|---|---|
| Up to £20,000 (£28,000 in London) | 5% or £800, whichever is greater |
| £20,001–£100,000 (£28,001–£100,000 in London) | 15% or £800, whichever is greater |
| Over £100,000 | 30% or £800, whichever is greater |
The comparison uses the previous year’s bill after the relevant reliefs. These limits do not mean every business receives an £800 discount; they limit how much an eligible bill can increase. Source: GOV.UK
How to claim: Your council should adjust the bill if you qualify. Contact its business rates team if your bill appears not to include the relief.
3. Transitional Relief After the 2026 Revaluation
A revaluation can change a property’s rateable value and lead to a substantial increase in business rates. Transitional Relief helps eligible businesses by phasing in increases rather than applying the full change immediately.
For England, the 2026–27 caps on increases under the new scheme are:
- 5% for properties with rateable values up to £20,000, or £28,000 in London.
- 15% for properties valued from £20,001 to £100,000, or £28,001 to £100,000 in London.
- 30% for properties valued above £100,000.
The caps apply to qualifying increases resulting from revaluation and are subject to the scheme’s rules. Transitional Relief is normally applied automatically by the council. It ends when the bill reaches the full amount determined by the revaluation.
Businesses should compare their 2025–26 and 2026–27 bills to understand whether transitional support has been applied correctly.
4. 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.
A qualifying pub must generally be open to the public, permit drinks to be purchased at a bar, allow drinking without requiring food and offer free entry apart from occasional entertainment. Restaurants, hotels and nightclubs do not automatically qualify as pubs under this scheme.
A live music venue must be mainly used for performances of live music to entertain an audience. Premises mainly used as nightclubs or theatres are excluded from the live music venue definition.
Eligible venues can receive this relief alongside Transitional Relief or Supporting Small Business Relief where applicable. The government has also announced that eligible bills will be frozen in real terms in 2027–28 and 2028–29.
Contact your council to confirm whether your premises meet the conditions and how the relief is being applied.
5. Rural Rate Relief
Rural Rate Relief supports certain businesses in eligible rural areas with populations below 3,000.
In England, qualifying businesses can receive 100% relief if they meet the relevant conditions. Eligible examples include:
- The only village general store, food shop or post office, with a rateable value up to £8,500.
- The only public house or petrol station, with a rateable value up to £12,500.
The property must be occupied, and the local authority determines whether the area and business meet the criteria.
Businesses that lost rural relief following the 2026 revaluation should also check whether Supporting Small Business Relief applies.
6. Other Business Rates Reliefs Worth Checking
Small businesses should consider more than the main small-business schemes. Depending on their circumstances, other support may be available.
- Charitable rate relief: Eligible charities and community amateur sports clubs can receive up to 80% mandatory relief. Councils may provide additional discretionary relief. A business cannot receive Small Business Rate Relief and charitable rate relief at the same time.
- Empty property relief: Certain empty commercial properties qualify for temporary or specific relief. The rules depend on the property type and circumstances.
- Improvement Relief: Eligible businesses may receive relief on qualifying increases in rateable value caused by certain property improvements. Conditions apply.
- Hardship relief: A council may offer discretionary relief to a business experiencing financial hardship where the relevant conditions are met.
- Electric vehicle charging point relief: England introduced a ten-year 100% business rates relief for eligible separately assessed electric vehicle charging points and electric-vehicle-only forecourts under the 2026 package. Eligibility depends on the applicable rules.
Check the relevant scheme and ask your council which reliefs can be combined. Source: GOV.UK
What Changed for Retail, Hospitality and Leisure Businesses in 2026–27?
A key change is that businesses in England can no longer make new claims under the previous Retail, Hospitality and Leisure (RHL) relief scheme from 1 April 2026.
Instead, qualifying retail, hospitality and leisure properties benefit from lower business rates multipliers. For 2026–27, the small RHL multiplier is 38.2p and the standard RHL multiplier is 43.0p. These apply according to the property’s rateable value and eligibility for the RHL category.
The standard small-business multiplier is 43.2p, while the standard multiplier is 48.0p. Properties with rateable values of £500,000 or more use the high-value multiplier of 50.8p. Source: GOV.UK
These multipliers are used to calculate bills; they are not percentage discounts. A business’s final bill depends on its rateable value, property category and any other reliefs.
How to Check and Claim Business Rates Relief
Follow these steps to check whether your business is paying the correct amount:
- Find your rateable value. Check your property’s valuation through the relevant valuation authority.
- Review your 2026–27 bill. Compare it with the previous year’s bill and check the multiplier used.
- Identify relevant reliefs. Consider SBRR, Supporting Small Business Relief, Transitional Relief and any sector-specific or local schemes.
- Contact your council. Ask which reliefs apply, whether they have been included and whether an application or supporting evidence is needed.
- Challenge an incorrect valuation if necessary. If you believe the rateable value is wrong, follow the official valuation challenge process. A valuation challenge and a relief application are separate matters.
Do not assume that every scheme is applied in the same way. Some reliefs are calculated automatically, while others require the business to contact the council or meet additional conditions.
Frequently Asked Questions
Who qualifies for business rates relief in 2026–27?
Eligibility depends on the property’s rateable value, location, use and the business’s circumstances. Small businesses, qualifying rural businesses, charities, eligible pubs and live music venues, and businesses affected by revaluation may qualify for different schemes.
Can a small business get 100% business rates relief?
Yes. In England, an eligible business occupying one property with a rateable value of £12,000 or less can generally receive 100% Small Business Rate Relief. Other schemes, including rural rate relief, have separate eligibility conditions.
Do I need to apply for business rates relief?
Not always. Transitional Relief and Supporting Small Business Relief should generally be reflected in eligible bills by the council. For Small Business Rate Relief and other schemes, contact the council to confirm eligibility and whether you need to request support.
Does the 2026–27 relief system apply across the whole UK?
No. Business rates rules differ in England, Scotland, Wales and Northern Ireland. Check the relevant government guidance and local authority for the country where your commercial property is located.
Can I receive more than one type of business rates relief?
Sometimes. Certain schemes can operate together, but others cannot be combined or are applied in a specific order. Ask your council to confirm how the rules affect your individual bill.
Conclusion
UK Business Rates Relief in 2026–27 can reduce costs for eligible small businesses, but the right scheme depends on the property and the circumstances. Start by checking the rateable value and reviewing the latest bill, then ask the local council to confirm which reliefs apply. Businesses affected by the April 2026 revaluation should pay particular attention to Supporting Small Business Relief and Transitional Relief.
