Local government finance circular 7/2026: non-domestic rates relief guidance

Annex C: Small business bonus scheme worked examples

Note: These worked examples do not include interactions with transitional relief schemes which are covered in the Transitional Relief Worked Examples.

Example 1

Ratepayer is liable for rates on one property only.

RV in 2026-27 is £10,000. Gross liability in 2026-27: £10,000 x 0.481 = £4,810.

The rateable value is still less than £12,000, and there is only one property so 100% SBBS relief is awarded.

Bill in 2026-27 is £0.

Example 2

Ratepayer is liable for rates on more than one property, but the cumulative rateable value of all the properties does not exceed £12,000.

RV for the individual property in 2026-27 is £10,000.

Gross liability = 10,000 x 0.481 = £4,810.

The cumulative rateable value is less than £12,000, so 100% SBBS relief is awarded.

Bill in 2026-27 is £0.

Example 3

Ratepayer is liable for rates on more than one property, and the cumulative rateable value exceeds £12,000, but does not exceed £35,000.

RV for the individual property in 2025-26 is £14,000 and it remains the same in 2026-27.

Gross liability in 2026-27 is £14,000 x 0.481 = £6,734.00

As the cumulative rateable value is between £12,001 and £35,000 and the individual rateable value does not exceed £15,000, 25% relief is awarded in 2026-27.

Bill in 2026-27: £6,734.00 x (1-0.25) = £5,050.50.

Example 4

RV in 2025-26 is £20,000 and the property in 2025-26 is not in receipt of a transitional relief, hospitality relief, Small Business Bonus Scheme relief or rural relief.

Bill in 2025-26 is £20,000 x 0.498 = £9,960.00.

Ratepayer in 2026-27 is liable for rates on more than one property, and the cumulative rateable value exceeds £12,000, but does not exceed £35,000.

RV in 2026-27 decreases to £16,000.

Gross liability is £16,000 x 0.481 = £7,696.00

As there is more than one property with an RV no more than £35,000 and the individual property’s rateable value is between £15,001 and £19,999, then the relief percentage is calculated according to the following formula: 25 x 20000 - RV5000

Relief percentage = 25 x 20000 - 160005000

Relief percentage = 25 x 0.8

Relief percentage = 20%

Relief value = £7,696 x (1 – 0.2) = £6,156.80.

Example 5

Ratepayer is liable for rates on more than one property, and the cumulative rateable value is greater than £35,000.

RV in both 2025-26 and 2026-27 is £10,000 and in 2025-26 the property was not in receipt of a transitional relief, hospitality relief, Small Business Bonus Scheme relief or rural relief.

Gross liability in 2025-26: £10,000 x 0.498 = £4,980.

Gross liability in 2026-27: £10,000 x 0.481 = £4,810.

As the cumulative rateable value is greater than £35,000, then no SBBS relief is awarded in either 2025-26 or 2026-27 and the net bill is equal to the gross bill.

Example 6

The ratepayer is liable for a single property, a shop on the mainland with RV 14,800 in 2026-27.

This is unchanged since 2025-26 and the property is not eligible for Revaluation Transitional Relief, Rural Relief or Small Business Transitional Relief.

Gross liability is £14,800 x 0.481 = £7,118.80

As there is one property with an RV of more than £12,000 and the individual property’s rateable value is between £12,001 and £15,000, then the Small Business Bonus Scheme (SBBS) relief percentage is calculated according to the following formula: 100 - 75 x (1 - 15000 - RV3000 )

Relief percentage = 100 - 75 x (1- 15000 - 148003000 )

Relief percentage = 100 - 70

Relief percentage = 30%

In addition, the property is eligible for 15% Retail, Hospitality and Leisure relief.

The net bill in 2026-27 is therefore £7,118.80 x (1 - (0.3 + 0.15)) = £3,195.34