An asymmetric erbium(iii) Schiff base complex [Er(HL)2(NO3)3] was synthesized which shows SMM behaviour with an Ueff of 5.2 K. Dipolar interaction in 1 significantly reduced upon dilution which increases the barrier height to 51.5 K. Ab initio calculations were performed to shed light on the mechanism of magnetization relaxation. © The Royal Society of Chemistry 2015.