Business rate relief

Transitional relief limits how much a business rates bill can increase each year following a revaluation. Its purpose is to protect customers from sharp increases should their rateable value increase substantially from one rating list to the next.

You do not need to apply for this reduction as it will automatically be applied where appropriate.

For the 2023 list the following transitional limits are in place:

For the 2026 list the following transitional limits are in place: 

Supporting Small Business Relief is given to businesses that lose their Small Business Rate Relief or Rural Rate Relief because their rateable value has increased at revaluation and is now above the qualifying threshold. From 1 April 2026, Retail, Hospitality and Leisure Relief will also count as a qualifying reduction, as this relief ends on 31 March 2026. The aim of Supporting Small Business Relief is to help businesses move gradually to higher business rates after losing one of these reductions. You do not need to apply for this reduction as it will automatically be applied where appropriate.

Under the 2023 Supporting Small Business Relief scheme, the yearly increase in what you pay is limited to £600. Any account that received this 2023 relief can receive one extra year of help (for the 2026/27 financial year only) under the 2026 Supporting Small Business Relief scheme. 

A new 2026 Supporting Small Business Relief scheme will start on 1 April 2026.

Any new accounts that qualify will have their bill increase limited to £800 under this scheme. The exception to this is where an account received transitional relief in the 2025/26 financial year. In these cases, the transitional relief for 2025/26 is removed first to work out a new chargeable amount for that year. The £800 limit is then applied to this figure. This means the increase from 2025/26 to 2026/27 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).

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believe you will exceed the subsidy limit of £315,000 in a three year period, you must contact us so the relief can be withdrawn or amended.

From 1 April 2026 additional support is being introduced to assist pubs and live music venues with their business rates. This is a 15% reduction off the net charge once any other reductions have been applied.

To qualify for pub relief, the hereditament must:

• meet the criteria to be deemed a pub and not be included on the exclusions list
• be occupied, meaning in use
• be open to the general public
• allow free entry other than when occasional entertainment is being provided
• allows drinks to be purchased from the bar

To qualify for the live music venue relief, the establishment must be used wholly or mainly for the performance of live music for the purpose of entertaining an audience and does not fall into the excluded categories below.

Excluded categories

If the premises fall into the categories below, they are not entitled to the pubs and live music venues relief.

If a property is used solely or mainly as:

• a restaurant, café, nightclub or snack bar
• a hotel, guesthouse or boarding house
• a sports venue
• a festival site, theatre or cinema
• a museum or exhibition hall
• a casino

If you believe you meet the criteria for the above reduction and it has not been awarded to your account, please call the Revenues Office and say business rates, when prompted, to speak to an advisor.

Registered charities can benefit from a rate relief reduction of 80% of their business rate charge if the premises are used for charitable purposes. They can also apply for a further discretionary rate relief of up to 20% to top up this reduction to a maximum of 100% relief.

This reduction can also be claimed on empty properties owned or leased by the charity where the next intended use will be for occupation by the charity.

If you would like to apply for Charity Relief, please complete the online application form below.

Apply for charity relief

A non-profit organisation is an entity that exists to serve a public or community benefit rather than to generate profit for owners or shareholders. Any surplus income it makes is reinvested back into the organisation’s mission. Discretionary rate relief of up to 100% can be awarded to non-profit organisations. Examples of non-profit organisations are sports clubs, social enterprises and community associations.

If you would like to apply for discretionary rate relief, please complete the online application form below.

Apply for non-profit organisation relief

A community amateur sports club more commonly known as a CASC is a UK based amateur sports club that is registered with HM Revenue & Customs (HMRC) to receive a range of tax reliefs similar to those available to charities, provided the club meets specific eligibility criteria. A mandatory rate relief reduction of 80% of the business rate charge can be awarded to qualifying organisations. A further discretionary rate relief of up to 20%, to top up this reduction to a maximum of 100% relief, can also be applied for.

If you would like to apply for rate relief due to being a CASC, please complete the online application form below.

Apply for community amateur sports clubs relief

Small business rate relief is a government scheme that reduces or removes business rates for smaller businesses that occupy hereditaments with low rateable values. It is designed to ease the financial burden on small enterprises by lowering their business rates bill. The relief cannot be claimed if you qualify for charity relief or rural rate relief and can only be awarded on one hereditament.

Small Business Rate Relief can be awarded if the following criteria is met.

• you occupy only one property with a rateable value of under £15,000
• you occupy one main property with a rateable value of under £15,000 and a second occupied property with a rateable value below £2,900
• if you occupy more than two properties, each additional property must have a rateable value of below £2,900 or less and the combined total of all rateable values must not exceed £19,999. You will receive the small business rate relief on your main assessment. This is determined to be the property you occupy with the highest rateable value.

For the purposes of awarding small business rate relief, additional occupations are considered to be anything that is registered in your name. This includes liabilities where you are the sole trader and liabilities where you are in a partnership.

If you qualify for small business rate relief the amount of reduction you will get will depend on the rateable value of your property. 

If your property has a rateable value of £12,000 or less, you will be entitled to 100% relief.

For properties with a rateable value between £12,001 and £15,000, the relief is tapered, gradually decreasing from 100% to 0%.

If you would like to apply for Small Business Rate Relief you can make your application using the following link

Apply for small business rate relief

Changes in circumstances

If you have been awarded small business rate relief and any of the following changes in circumstances occur, you must report this to us within 21 days:

• if the Valuation Office Agency increases the rateable value of a business rated premises that you are liable for that would affect your qualification for the reduction
• if a property you are liable for that is listed as empty becomes occupied
• if you become responsible for another business rated property in another council area
• if the property you are receiving small business rate relief on ceases to be occupied by you

Originally, if a small business took on a second liability that had a rateable value of £2900 or more, they would automatically lose their small business rate relief. To encourage growth a grace period was introduced to allow small businesses to keep their small business rate relief, for a period of 12 months when they took on this second liability. From the 27 November 2025 this scheme has been extended to a period of 36 months.

The 36-month extension can only be applied when the additional liability has occurred on or after 27 November 2025. Anyone who met the criteria before this date will only qualify for the 12-month extension.

Rural rate relief is available to businesses located in designated rural settlements. You may qualify for a mandatory 100% relief if you are in a designated rural settlement and your business is:

• a general store with a rateable value of under £8,500
• a post office with a rateable value of under £8,500
• a public house with a rateable value of under £12,500
• a petrol filling station with a rateable value of under £12,500
• a food store with a rateable value of under £8,500

If your business doesn’t qualify for a mandatory business rate relief, you may still qualify for a discretionary relief if the rateable value of your business is under £16,500.

Contact us to apply for rural rate relief

Empty property rates are payable on most commercial properties by the person entitled to possession. This is usually the leaseholder or tenant if there is one, or the freeholder if not.

For the first three months of a property being empty, no rates are payable. This period is extended to six months for properties classed as industrial including factories, warehouses, and workshops.

After this, empty rates are charged at 100% of the occupied rate unless one of the exemptions below applies:

• where the rateable value is less than £2900
• properties where occupation is prohibited by law
• properties that are empty due to action taken by the crown or by any public or local authority, either to prevent occupation or to acquire the property, such as a compulsory purchase order has been made
• listed buildings or those subject to a preservation order
• properties where the person liable would be so only in their capacity as:
  • a personal representative of a deceased person
  • a liquidator or a trustee under a deed of arrangement
  • properties where the person entitled to possession is the subject of insolvency proceedings
  • the owner is a company in administration

From 1 April 2024 a property must be in use for a period of 13 weeks or more before a second period of empty property relief can be applied.

If you would like to apply for empty property relief please contact us.

Section 44a of the Local Government Finance Act 1988 allows a billing authority to grant discretionary business rates relief where a property is partly occupied for a short period of time. This is usually applicable when there is a phased occupation of a property, a phased vacation of a property or a fire or flood to part that requires remedial works.

For further information and details on the application process please read our  Section 44a Local Government Finance policy (pdf / 194 KB).

Premises occupied for retail, hospitality or leisure purposes may receive relief up to a maximum of £110,000 per year, per business at the following rates:

• 1 April 2020 to 30 June 2021 - 100%
• 1 July 2021 to 31 March 2022 - 66%
• 1 April 2022 to 31 March 2023 - 50%
• 1 April 2023 to 31 March 2025 - 75%
• 1 April 2025 to 31 March 2026 - 40%

Read more information on retail, hospitality and leisure relief on the government website.

This relief scheme is likely to count as a subsidy, so can only be claimed if the business has not already exceeded the permitted United Kingdom Subsidy Threshold as set out in the Small Amounts of Financial Assistance Allowance.

The responsibility lies with the business, on a self-assessment basis, that by accepting the relief, they will not breach either the cash cap or the Small Amounts of Financial Assistance Allowance threshold.

When you apply for or opt out of relief you will need to tell us:

• your non-domestic reference number
• the property which you are claiming for
• that receiving the relief your business will not exceed the cap of £110,000

Contact us to apply for or opt out of retail, hospitality and leisure relief

Hardship Relief is a discretionary business rates relief that councils may award in exceptional cases where a business is facing genuine hardship and where giving the relief is considered to be in the best interests of the local community.

You can find out more information about  North Yorkshire Council’s Section 49 Relief policy here (pdf / 159 KB).

Public Lavatories Relief is a 100% mandatory business rates relief for properties that consist wholly or mainly of public lavatories. The purpose of the relief is to reduce running costs for public toilets to help prevent closures. You do not need to apply for this relief as it will automatically be awarded when appropriate.

Film Studio Relief is a 40% reduction on gross business rates bills for eligible film studios in England.

It is a long term relief running from 1 April 2024 until 31 March 2034 and applies whether the studio is occupied or unoccupied.

Qualifying properties are identified by the Valuation Office Agency and listed accordingly. The relief will be automatically applied to your business rate bill if appropriate.

Heat Network Relief is a 100% mandatory business rates relief for properties that are wholly or mainly used as a heat network, supplying heating and/or cooling from a low carbon central energy source to multiple other buildings.

Businesses can benefit from improvement relief when they undertake qualifying improvements, that increases the rateable value of the property. If eligible, the business receives 12 months of relief, during which the rates bill is not increased as a result of those improvements. The Valuation Office determines what works qualify for the relief and issue certificates to confirm the rateable value that is subject to the relief. These are sent to us and applied accordingly.

If you would like more information on improvement relief, please visit the business rates relief page on the government website.

EVCP relief is a 100% relief that can be applied to electric vehicle charging points that are separately assessed and EV only forecourts. The purpose of the relief is to support the rollout of national EV charging infrastructure and reduce operating costs for charging-point operators.