Business Rates Relief cut in 2025

by | Sep 17, 2025 | Accounting & Business

If your business operates from a physical premises, now is the time to reassess your overheads.


From April 2025, the Business Rates Relief available to retail, hospitality and leisure businesses in England was reduced from 75% to 40%. That’s a big shift—and one that’s already being felt in cash flow.

But it’s not too late to take action.

Here’s what proactive business owners are doing now to protect their margins:

The Current Relief Situation (as of 2025)

  • Relief reduced: From 75% to 40% as of 1 April 2025

  • Cash cap: Capped at £110,000 per business

  • This means businesses are paying significantly more in rates—even if revenues haven’t increased

What You Can Do Now to Minimise the Impact

1. Check Your Business Rates Bill – Is It Accurate?

Business rates are based on your property’s “rateable value.” If your bill looks unexpectedly high, it may be worth checking if your property has been overvalued. A formal revaluation request might be justified.

2. Explore Reliefs and Exemptions Still Available

You may still qualify for:

  • Small Business Rates Relief (SBRR)

  • Rural rate relief

  • Hardship relief (if you’re genuinely struggling post-change)

Your local authority can provide guidance—but we can help interpret their responses and flag opportunities.

3. Speak to Your Landlord About Lease Terms

If your lease includes a service charge or rates clause, there may be room for negotiation. Now is a good time to review how costs are shared—and if there’s any scope for a rent reassessment or rate-sharing arrangement.

4. Claim What You Can: Tax Deductibility & Grants

Business rates are generally tax-deductible, so make sure you’re claiming them in your accounts. Also check for local business grants or hardship funds, particularly if you’re in a regeneration zone or high street improvement area.

5. Reassess Your Premises Strategy

If rates have jumped sharply, is your current space still right-sized for your business? A move to a slightly smaller unit—or a switch to hybrid operations—might result in long-term savings.

💬 Want Us to Review Your Business Rates Strategy?

We’re helping several retail and hospitality clients assess their costs and find relief opportunities they may have missed.

Request a quick business rates check

or simply call us on 01922 326000

BOOK A FREE CONSULTATION