Renters' Rights Act 2025, Phase 1 commencement
Transition readiness pack

Property Tax

Commercial Rates Relief UK

Small Business Rate Relief, the Retail Hospitality and Leisure discount, rural and charity reliefs, empty property rates, and challenging rateable values through the Check Challenge Appeal process.

12 min readUpdated 7 June 2026Last reviewed: 17 May 2026business ratesSBRRrates reliefempty property rates

Small Business Rate Relief (SBRR) and the small business multiplier

In England, 100% SBRR applies to occupied properties with a rateable value up to £12,000 where the ratepayer occupies only one property. A tapered SBRR applies from £12,001 to £14,999. All occupied properties with a rateable value below £51,000 use the lower small business multiplier (49.9p in 2024-25 vs 54.6p standard). If a second property is acquired, the 100% SBRR on the first property ends after a 12-month transitional period. Wales and Scotland have separate devolved schemes with different thresholds.

  • 100% SBRR (RV up to £12,000, single property): apply to the billing authority — many apply it automatically
  • Small business multiplier (RV below £51,000): applies even without SBRR — saving on larger small business properties
  • Second property ends 100% SBRR after 12-month transitional period — consider before taking on additional premises
  • Wales: 100% SBRR up to RV £6,000; tapered to £12,000 — Scotland: Small Business Bonus Scheme 100% up to RV £15,000

Retail Hospitality and Leisure discount, charity, rural, and enterprise zone reliefs

For 2024-25 eligible retail, hospitality and leisure properties in England receive a 75% Retail Hospitality and Leisure (RHL) discount capped at £110,000 per business per year (subject to subsidy control). Mandatory charity relief (80%) applies to properties occupied by charities for charitable purposes. Rural rate relief (mandatory 50% plus discretionary 50%) applies to sole-provider properties in designated rural settlements with RV below £8,500. Enterprise zone properties receive mandatory 80% relief for the first 5 years of occupation.

Empty property rates and the Check Challenge Appeal process

Vacant commercial properties receive 100% relief for the first 3 months of vacancy (6 months for industrial/storage). After this period full business rates apply. Listed buildings are exempt from empty property rates with no time limit. Genuine business reoccupation for 6+ weeks restarts the relief period. Charity occupation during the void also attracts 80% mandatory relief. To challenge a rateable value, complete the Check, Challenge, Appeal (CCA) process with the Valuation Office Agency — a Check must precede a Challenge, and the VOA has 18 months to respond. A material change of circumstance (MCC) appeal can be submitted at any time for physical changes to the property. Use a RICS-regulated rating surveyor for complex challenges.

  • 3-month (6-month industrial) empty property relief — notify billing authority immediately when a tenant vacates to start the clock
  • Listed building exemption — vacant listed commercial buildings pay no empty property rates
  • Charity occupation reset — a charity using the void space qualifies for 80% mandatory charity relief and may restart the empty property cycle
  • CCA process — Check then Challenge then Appeal to the Valuation Tribunal for England; backdated savings to date of challenge submission
  • RICS-regulated rating surveyors — many work on contingency; no saving, no fee

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