With new financial years come fresh regulatory changes. As businesses prepare for 2025, understanding the new business rates framework is more crucial than ever. From the updated business rate relief 2025 scheme to evolving support for retail, hospitality and leisure sectors, this guide breaks down what’s ahead and how you can prepare.
Business rates 2025 refer to the annual charges levied on commercial properties in the UK, updated for the financial year beginning April 2025. These rates are based on your property's rateable value, determined by the Valuation Office Agency, and help fund local services.
The UK government periodically reassesses rateable values and adjusts relief schemes to reflect economic conditions. In 2025, adjustments reflect post-pandemic recovery efforts, increased cost of living pressures, and targeted support withdrawals.
Business rate relief 2025 is a scheme designed to reduce the financial burden of rates for eligible businesses. This year, a key update is the reduction of the retail hospitality and leisure relief from 75% to 40%—a significant shift for many high street retailers and service providers.
Businesses in the retail, hospitality and leisure sectors can benefit from a 40% discount on their business rates bill in 2025. This applies to occupied properties only and is subject to a cap of £110,000 per business.
Relief is typically applied automatically if your business is eligible. However, it’s advised to check with your local council to ensure the discount is reflected and submit any required declarations, especially if you operate across multiple sites.
While retail relief applies to high street sectors, small business rate relief is for businesses with a lower rateable value—generally below £15,000. Both cannot usually be claimed together on the same property.
If your rateable value increases due to expansion, you may lose eligibility for certain reliefs. Planning around this change is key—speak to your council’s business rates team early to assess your liabilities.
Business rates are calculated using:
You can use the business rates calculator to estimate your 2025 bill.
For 2025, eligible retail, hospitality and leisure businesses will receive a 40% discount on their business rates, up to a cap of £110,000 per business.
Yes, but the amount has reduced. Businesses that qualified last year will likely still qualify, but the discount is now 40% instead of 75%.
To ensure your business doesn’t miss out on any support:
The 2025 changes to business rates may feel daunting—especially the reduction in business rate relief 2025. But understanding what’s available and how to claim it can significantly reduce your business’s tax burden. From retail hospitality and leisure relief to small business support, take action early and stay ahead of any liabilities. For tailored advice, always speak to your council or a professional advisor.
Ready to plan your 2025 business budget? Download our free rates planning checklist or get in touch for personalised advice.
