Rate relief is dependent on the value of the property, and businesses that occupy properties with a rateable value of up to £5,000 are entitled to a 50% relief.
According to the FSB, unclaimed business relief is worth £400m each year to the UK's small business sector.
FSB national chairman John Wright said that business rates are the third biggest expenditure for small businesses after rent and wages.
"During the recession, this cash injection could save many small businesses from laying off staff or closing down completely," he added.
The organisation is calling on parliament to make small business rate relief automatic as it is in Wales. The motion is due to be debated in the House of Commons on 6 March.
'Half of small UK businesses' not claiming rates relief cash
More than half of the UK's small businesses are missing out on up to 1,200 a year in business rates relief as they are unaware of their entitlement, the Federation of Small Businesses (FSB) has warned.
