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Correspondence

5/2026: Supporting Small Business Relief

Published 26 May 2026

Applies to England

© Crown copyright 2026

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This publication is available at https://www.gov.uk/government/publications/52026-supporting-small-business-relief/52026-supporting-small-business-relief

To: Chief Finance Officers of English Billing Authorities - For the attention of the Business Rates section

From: Non-Domestic Rates Team, LGF - Local Taxation, Ministry of Housing, Communities and Local Government (ndr@communities.gov.uk)

Date: 21 May 2026

Dear Chief Finance Officer 

Business Rates Information Letter (5/2026): Supporting Small Business Relief

This is the fifth business rates information letter to be issued by the Ministry of Housing, Communities and Local Government in 2026. Previous letters are available on the internet at: 

https://www.gov.uk/government/collections/business-rates-information-letters 

or for archived letters: 

http://webarchive.nationalarchives.gov.uk/20120919132719/http:/www.communities.gov.uk/localgovernment/localgovernmentfinance/businessrates/busratesinformationletters/. 

This letter covers:   

  • Amendments to 2026 Supporting Small Business Relief – vacancy and reoccupation

Amendments to 2026 Supporting Small Business Relief – vacancy and reoccupation

  1. Following the 2025 Budget, the government published guidance for local authorities to support them with the administration of the 2026 Supporting Small Business Relief Scheme.

  2. The government has decided to amend the eligibility criteria for Supporting Small Business Relief to bring eligibility for the relief in line with the treatment of vacancy and reoccupation under Transitional Relief. This change reflects that, like Transitional Relief, Supporting Small Business Relief is intended to mitigate bill increases for ratepayers who see their rates liability increase as a result of revaluation. This change is backdated to 1 April 2026.

  3. Under this change, a change of ratepayer or a period of vacancy after 31 March 26 will not affect eligibility for the Supporting Small Business Relief scheme.

  4. Eligibility will continue to be lost if the property becomes occupied by a charity or Community Amateur Sports Club.

  5. The government has published an update to the guidance for local authorities on the administration of 2026 Supporting Small Business Relief to reflect this change.

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