Business Rates changes from April 2026
Introduction
Depending on individual circumstances, you may be eligible for a reduction in your business rates bill. There are a range of available reliefs. Some of the permanent reliefs are listed below, but temporary reliefs are often introduced by Government at budgets.
Read our Understanding your Business Rates Bill 2026 to 2027 page to find out more.
Please contact us for details of the latest availability of Business Rates reliefs and advice on eligibility. You can also read more information about the reliefs on the GOV.UK – Business rates relief page.
If your business is eligible for business rates relief or an exemption, you can find out how to apply below.
Small Business Rate Relief
Small Business Rate Relief is available at 100% for ratepayers who occupy single properties with a rateable value of up to £12,000. If eligible ratepayers have a property with a rateable value from £12,001 to £15,000, relief is available on a sliding scale from 100% to 0%, where every £30 rateable value equates to 1%. Find out more and how we are supporting on our Small Business Rates Relief page.
Empty Property and Partially Occupied Rates Relief
If your business property is empty or partly occupied, you may qualify for business rates relief or an exemption for a limited time, depending on the type, value, and use of the property. Find out more on our Empty Property and Partially Occupied Rates Relief page.
Charities, Sports Clubs and Not for Profit Organisations
Relief for Charities
Charitable organisations that occupy a non-domestic property, for activities in connection with the purposes of that charity, are entitled to Mandatory Charitable Relief of 80% off the bill.
Under our 2025/2026 Discretionary Rate Relief Policy, if the charitable organisation can evidence, they are solely or mainly based within the Somerset Area, we will automatically award a further discretionary relief to clear the remaining 20% of the bill.
Relief for Community Amateur Sports Clubs
Community Amateur Sports clubs that are confirmed as registered on HM Revenues and Customs are eligible for 80% Mandatory Relief.
Under our 2025/2026 Discretionary Rate Relief Policy, if the sports club can evidence, they are solely or mainly based within the Somerset Area, we will automatically award a further discretionary relief to clear the remaining 20% of the bill.
Relief for Not for Profit Organisations
Under our 2025/2026 Discretionary Rate Relief Policy, Discretionary Rate Relief can be granted for up to 100% to certain not-for-profit organisations. To be eligible the organisation must be a non-profit making body, based solely or mainly within the Somerset Area, and the property must be:
- used for charitable, philanthropic or religious purposes, or;
- concerned with education, social welfare, science, literature or the fine arts, or;
- used wholly or mainly for recreation by a not-for-profit club or society (with objectives that are broadly charitable).
Application process
To apply for any of the above reliefs please download and complete Rates Relief Claim Form.
Rural Rate Relief
If your business is liable for a property within one of our rural settlements, we will award 100% Mandatory Rural Rate Relief. This is providing the following description and rateable value is also met:
- Sole Post Office – Less than £8,500
- Sole general store – Less than £8,500
- Food Shop – Less than £8,500
- Sole pub – Less than £12,500
- Sole petrol station – Less than £12,500
Under our 2025/2026 Discretionary Rate Relief policy we also have the discretion to award Rural Rate Relief of up to 100% on any other business within one of our rural settlements, if the business is of significant benefit to the community and has a rateable value of less than £16,500.
This relief is given subject to state aid de minimis levels.
To apply for any of the above reliefs please download and complete this Rate Relief Claim Form.
Transitional Relief
Revaluations can result in changes to Business Rates bills, with some properties seeing increases and others decreases. To assist with managing these changes, the government introduces Transitional Relief schemes.
Transitional Relief will limit how much a Business Rates bill can increase each year as a result of the revaluation. This ensures that the changes are phased in gradually over a period.
Properties that have had a rateable value decrease will benefit from the reduction immediately, rather than having the reduction phased in gradually.
If you would like further information of the current Transitional Relief scheme, please see the Business Rates Relief page on GOV.UK.
Hardship Relief
We have discretion to give hardship relief but as it is subsidised by local Council Taxpayers. We will only consider an award in the most exceptional circumstances. Hardship Relief is to provide short term immediate help to businesses suffering exceptional hardship as a result of circumstances beyond their control and outside of the normal risks associated with running a business of that type. Hardship Relief will not be considered for a financial prop for a failing business.
Applicants must have investigated all other avenues of financial assistance before making an application for Hardship Relief. We will only consider an award of Hardship Relief where it is in the best interests of the residents and taxpayers of the Somerset area.
As decisions are on a case-by-case basis and applications should be supported fully with the below evidence:
- Your current and previous two years audited accounts
- The bank statements for the business from the last six months
- Further details should be supplied, including the reason for the hardship, how long do you think the hardship will last and what business plans are in place going forward.
- Explanation of why it would be in the interest of local council taxpayers if the hardship relief is awarded.
Further information about Hardship Relief can be found in our Discretionary Rate Relief Policy.
Retail Hospitality and Leisure (RHL) Discount
Current Retail Hospitality and Leisure (RHL) Discount (up to 31 March 2026)
Businesses mainly used for retail, hospitality or leisure such as:
- Shops
- Cafés, restaurants, bars and pubs
- Hotel and B&Bs
- Gyms, cinemas and visitor attractions
Received a:
- 40% discount for 2025 to 2026
- 75% discount for 2024 to 2025
- 75% discount for 2023 to 2024
- 50% discount for 2022 to 2023
A maximum of £110,000 per business applies each year.
Most eligible businesses received this discount automatically. If you believe you are eligible, but the discount does not appear on your bill for the above financial years, please contact us as soon as possible. You can find further information in our Discretionary Rate Relief Policy.
Public Lavatories Relief
The Public Lavatories Act 2021 provides 100% business rates relief for separately assessed public toilets. This relief applies retrospectively from 1 April 2020.
Improvement Relief
Improvement Relief is designed to support businesses investing in improving their business property. If you are eligible the relief will last for a period of 12 months from the date the works are completed.
To receive Improvement Relief ratepayers much be able to demonstrate that the property meets the these 2 conditions:
- the Valuation Office Agency (VOA) must be satisfied that the improvements meet the definition of qualifying works – the ‘qualifying work’ condition, and
- the relevant local billing authority must be satisfied that in the period since qualifying works commenced the property has remained occupied and that the ratepayer has not changed – the occupation condition
Once the VOA are satisfied that the qualifying works condition has been met then it will issue a certificate of the increase in rateable value which is attributable to any works falling within the meaning qualifying works.
The Billing Authority will then apply the Improvement Relief using this certificate only if the occupation condition has been met.
Heat Network Relief
Following the Business Rates Review, the government announced that it would deliver a 100% relief for eligible low-carbon heat networks with individual rates bills. This relief was provided in 2022/23 and 2023/24 through a discretionary relief scheme operated by billing authorities. Government moved this onto a mandatory statutory footing from 1 April 2024.
The eligibility criteria will remain unchanged from the previous discretionary scheme, except that, as a mandatory relief, local authorities will now be able to benefit from this relief from 1 April 2024.
Heat networks take heat or cooling from a central source(s) and deliver it to a variety of different customers such as public buildings, shops, offices, hospitals, universities and homes. By supplying multiple buildings, they avoid the need for individual boilers or electric heaters in every building. Heat networks have the potential to reduce bills, support local regeneration and be a cost-effective way of reducing carbon emissions from heating.
In order to be eligible for Heat Network Relief the hereditament must be:
- Wholly or mainly used for the purpose of a heat network, and
- the heat is over the next 12 months expected to be generated from a low carbon source (irrespective of whether that source is located on the hereditament or on a different hereditament)