The government has announced important changes to the eligibility criteria for Supporting Small Business Relief in England.
The amendments are intended to ensure that businesses continue to receive support following property revaluations, even if certain changes occur after the start of the 2026/27 business rates year.
The updated rules have been backdated to 1 April 2026.
What Is Supporting Small Business Relief?
Supporting Small Business Relief was introduced to help businesses manage increases in their business rates bills following property revaluations.
The scheme limits the impact of significant increases in business rates by providing transitional support as businesses adjust to new rateable values.
For many small businesses, this relief can provide valuable financial assistance and help with budgeting and cash flow management.
What Has Changed?
The government has aligned the treatment of Supporting Small Business Relief with the rules already used for Transitional Relief.
Under the updated rules:
Changes of Ratepayer
A change of ratepayer after 31 March 2026 will no longer automatically result in the loss of relief.
This could benefit businesses that:
- Purchase premises
- Take over an existing lease
- Change ownership structures
Vacancy Periods
A temporary period of vacancy after 31 March 2026 will also no longer affect eligibility for the relief.
This provides additional flexibility for businesses dealing with property transitions or short-term vacancies.
When Will Relief Still Be Lost?
While the changes widen eligibility, there are still circumstances where relief will cease.
Eligibility will continue to be lost if the property becomes occupied by:
- A charity
- A Community Amateur Sports Club (CASC)
These exceptions remain unchanged under the revised rules.
Why Has the Government Made These Changes?
The purpose of Supporting Small Business Relief is to help businesses manage increases in business rates caused by property revaluations.
The government recognised that a change of occupier or a temporary vacancy does not alter the fact that the property remains affected by the revaluation.
As a result, the rules have been updated to ensure the relief continues to operate as originally intended.
What Does This Mean for Businesses?
The changes may provide reassurance for businesses that:
- Have recently moved premises
- Have experienced changes in ownership or tenancy arrangements
- Have had short periods of vacancy
- Are budgeting for future business rates costs
Businesses that may previously have lost eligibility could now continue receiving support under the amended rules.
Reviewing Your Business Rates Position
Business rates remain a significant cost for many organisations, making it important to ensure you are receiving any reliefs and exemptions available.
Alongside Supporting Small Business Relief, businesses may also be eligible for:
- Small Business Rate Relief
- Retail, Hospitality and Leisure Relief
- Transitional Relief
- Empty Property Relief
Reviewing your position regularly can help avoid paying more than necessary.
Final Thoughts
The changes to Supporting Small Business Relief are welcome news for many businesses affected by business rates revaluations.
By removing the automatic loss of relief following a change of ratepayer or a period of vacancy, the updated rules provide greater flexibility and ensure support reaches the businesses it was designed to help.
If you’re unsure whether your business qualifies for business rates relief or would like advice on managing property-related costs, we’d be happy to help.
📞 01527 368220
📧 info@ojwassociates.co.uk
