Supporting small business relief

Supporting small business relief is applied to accounts where they have lost entitlement to a particular reduction due to exceeding the qualification threshold, as their rateable value has increased at revaluation. These reductions are small business rate relief and rural rate relief. As retail, hospitality and leisure reduction ends on 31 March 2026 this will also become a qualifying reduction from 1 April 2026.  The purpose of this relief is to help businesses transition gradually to higher rates after losing the reduction.

The 2023 supporting small business relief is capped at an increase of up to £600 per year. Accounts that qualified for the 2023 supporting small business rate relief can qualify for an additional year of relief (2026 to 2027 financial year only) under the 2026 supporting small business relief scheme.

From 1 April 2026 the new 2026 supporting small business relief scheme will be introduced. Any new accounts that meet the criteria will see their bill capped at up to £800 under the 2026 supporting small business relief scheme.

The exception to this rule is where a qualifying account benefited from transitional relief in the 2025 to 2026 financial year. Where this is the case the 2026 supporting small business relief scheme will use a different calculation to determine the maximum amount payable.

This calculation will remove the transitional relief awarded in 2025 to 2026 to determine a new chargeable amount for 2025 to 2026 financial year. The £800 cap will then be applied to this figure. In these cases, the increase from the 2025 to 2026 financial year and the 2026 to 2027 financial year will be more than £800.

Important information

Supporting small business rate relief will cease if the assessment is vacated. It cannot be reapplied after a period of vacation.

Supporting small business rate relief cannot be awarded to an account where the liable party is a registered charity, trustee of a charity or a Community Amateur Sports Club (CASC).

You do not need to apply for this reduction as it will automatically be applied where appropriate. If you believe you will exceed the subsidy limit of £315,000 in a three year period, you must contact us so the relief can be withdrawn or amended.

Ways to contact us about Supporting Small Business Relief

If you have questions about Supporting Small Business relief or if you will exceed the MFA threshold, you can contact us.