Business rates relief: How to reduce your business rates bill

Business rates can be a significant cost for UK businesses, but various relief schemes and business rates mitigation strategies can help reduce your liability. From small business rate relief and rural rate relief to empty rates relief for vacant properties, understanding your eligibility could save your business thousands of pounds annually. Whether you're looking to reduce rates on occupied premises or mitigate empty rates liability through proven strategies like intermittent occupation, this guide explains the different types of business rates relief available across England, Wales, Scotland, and Northern Ireland - and how to claim them effectively.

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Small Business Rates Relief explained (SBRR)

Small Business Rates Relief can be difficult to understand. Here's what you need to know.

Business rates are one of the largest fixed costs for small businesses. Small Business Rate Relief can significantly reduce or eliminate this expense, freeing up vital cash flow for essential expenditure including wages, stock, and growth. For businesses operating on tight margins, business rates relief can mean the difference between survival and closure - providing essential financial support during start-up phases, challenging trading periods, or economic uncertainty.

Small Business Rate Relief (SBRR) is a discount applied to small businesses which can either fully negate or offer discount in liability up to a certain Rateable Value. There is a simple business rates calculator on the Government website to gauge what liability your business might face.

Rates Relief For Small Businesses by region

It's important to understand what applies in your business's location - Small Business Rate Relief by region varies.

Small Business Rate Relief varies from region to region. It’s important to understand the specific details for your area. Here is a breakdown of liabilities across the UK:

Small Business Rate Relief England

• £12,000 or less – 100% relief (no business rates payable).
• £12,001–£15,000 – tapered relief (gradually reducing from 100% to 0%).

Small Business Rate Relief Wales

• Up to £6,000 RV – 100% relief.
• £6,001–£12,000 RV – tapered relief.
• Above £12,000 – no Small Business Rates Relief.

Small Business Rate Relief Scotland

- Uses the Small Business Bonus Scheme:

• Up to £12,000 RV – 100% relief.
• From £12,001 - £15,000 - 25% on each individual property with a rateable value of £15,000 or less
• From £15,001 to £35,000 - Scales from 25% to 0% for individual properties with rateable values from £15,001 to £20,000

Small Business Rate Relief Northern Ireland

Small Business Rate Relief is based on Net Annual Value (NAV) rather than RV.

• Business properties with a NAV of £2,000 or less will receive a reduction of 50% rate relief
• Business properties with a NAV of more than £2,000 but not more than £5,000 will receive 25% rate relief
• Business properties with a NAV of more than £5,000 but not more than £15,000 will receive a 20% rate relief

If you operate a larger business, our team of business rates specialists can provide tailored advice on your liabilities.

If you have two properties, can you claim Small Business Rates Relief?

Can you claim Small Business Rate Relief on two properties?

Yes, you can but the rules can be quite restrictive so it’s best to seek expert advice on your business’s unique scenario.

Can Small Business Rates Relief be backdated?

Can Small Business Rates Relief be backdated?

Many businesses are unaware they've been eligible for Business Rates Relief and could have been overpaying business rates for several years. If you've never claimed Small Business Rates Relief or weren't informed of your eligibility by your local authority, Small Business Rate Relief can actually be backdated, but only up to 6 years under the Statute of Limitations Act 1980. This could potentially amount to thousands of pounds returned to your business. It's worth reviewing historic business rates bills to identify any missed relief opportunities and submit a backdated claim as soon as possible.

What is Rural Rate Relief?

What is Rural Rate Relief? Rural Rate Relief is an important part of sustaining the rural economy

Rural Rate Relief is relief of up to 100% off business rates for small rural businesses (like village shops, post offices, pubs) in areas with a population under 3,000.

Rural Rate Relief is important because it helps sustain essential services and businesses in small rural communities where margins are often tight and customer bases are limited. By reducing or eliminating business rates, it:

• Supports local economies – Village shops, post offices, and pubs are often lifelines for rural residents. Relief helps keep them financially viable.
• Preserves community services – These businesses provide access to goods, social spaces, and sometimes banking or postal services that would otherwise be hard to reach.
• Encourages rural development – Lower overhead costs make it easier for small businesses to start up or continue operating in areas with fewer opportunities.

Essentially, it’s a way to prevent rural isolation and economic decline by making sure these businesses can survive and thrive.

What is Empty Rates Relief? 

Learn exactly what Empty Rates Relief is and what it means for your business

Businesses that have empty property may be eligible for Empty Rates Relief. This is a temporary exemption from business rates on vacant properties.

• All properties get 3 months' relief
• Industrial classified units get up to 6 months.
• After that, full rates apply unless further exemptions apply.

Empty rates relief offers numerous benefits to businesses including helping businesses reduce costs during periods when a property is not generating income. By temporarily removing the burden of business rates, it:

• Improves cash flow – No rates to pay while the property is vacant.
• Provides breathing space – Time to find new tenants or plan redevelopment without extra financial pressure.
• Supports strategic decisions – Makes holding or refurbishing property more viable.

Business rates can significantly impact your property costs, but understanding your liability, exploring how to reduce business rates, and ensuring accurate valuations can lead to substantial savings. Whether you're expanding operations, managing a portfolio, or navigating rate appeals, our business rates specialists are here to help you optimise your business rates relief strategy and keep your occupancy costs under control.