If you’re renting a high street property, especially for the first time, understanding business rates relief can save you serious money. But reliefs aren’t automatically applied. In most cases, you need to register with your local council and actively apply.
Here’s a breakdown of the main types of business rates relief you might be eligible for, especially if you’re a startup, scaleup, or independent brand moving into retail or restaurant premises.
Remember you can search your or another property’s Rateable Value on the VOA website. Simply put in the address to find your property. You can always use our business rates calculator to estimate your business rates.
1. Small Business Rates Relief (SBRR)
If your property has a rateable value of £15,000 or less, you may qualify for Small Business Rates Relief:
- 100% relief for properties with a rateable value up to £12,000
- Tapered relief for rateable values between £12,001 and £15,000*
- Applies only if you occupy one property, though some exceptions exist
*Taperered relief will go down gradually from 100% to 0%. By 1% for every £30 over £12,000.
💡You can search our property database (within our member porta)l for only properties that are exempt from paying any business rates.
2. Retail, Hospitality & Leisure Relief
If your store sells directly to the public, you may qualify for this relief.
- From March 2025 to 1st April 2026, eligible businesses can receive 40% off their business rates bill, up to a £110,000 cap per business
- Applies to most retailers, cafés, restaurants, bars, gyms, hotels, spas, music venues and some service-based businesses
🕒 The government will announce whether this relief is extended and at what level in early 2026. In 2024/25 this relief stood at 75%.
3. Empty Property Relief
If you move into a commercial unit that has been sitting vacant, you might benefit from a temporary exemption:
- Up to 3 months of full rates relief is available for most empty properties
- Relief starts from when the property became vacant
- If the previous tenant didn’t use it up, you may inherit the remainder
🕒 This is time-sensitive. Check with the council whether the previous tenant applied for this relief.
4. Charitable Rate Relief
If you’re a registered charity, you may be eligible for:
- 80% mandatory relief on business rates
- An additional discretionary 20% (subject to local council approval)
To qualify, your premises must be used wholly or mainly for charitable purposes.
5. Relief for CICs (Community Interest Companies)
While CICs are not automatically entitled to charitable relief, they can apply for discretionary relief from the local council if:
- The business is not-for-profit
- The use of the premises has a clear social benefit to the local area
🧩 Each council sets its own criteria. You’ll need to supply evidence of your CIC registration and outline your community impact.
6. Transitional Relief
When your property’s rateable value changes significantly after revaluation, transitional relief can cushion the change by phasing in increases (or decreases).
- Automatically applied. No need to apply
- You can check your properties previous valuation via the VOA (Valuation Office Agency)
7. Hardship Relief
This is a discretionary relief granted in rare, urgent situations:
- Available when a business is in serious financial difficulty
- Council must be convinced that closing the business would negatively affect the local community or economy
🆘 Best suited for long-standing businesses or essential services under pressure.
Final Thought: Relief Won’t Find You, You Need to Find It
Business rates relief can represent significant savings, so you need to be on top of it. Local councils don’t apply some reliefs automatically, so allocate the time to make sure you’re being charged the right amount.
Be proactive. Register your business rates account as soon as you complete the lease. Speak directly to your council, and keep all communication in writing. You can always ask them:
“What reliefs might we qualify for based on our rateable value, business type, or tenancy status?”
Need Help Opening Your First Store?
At Hatch Retail, we help start-ups, scaleups, and online brands open physical stores, from site selection to store setup, including support on business rates, local council registrations, and more.
