How Do I Know if I Qualify for Small Business Rate Relief?
Find out whether your business qualifies for small business rate relief, how to check your eligibility, and how to apply.
You qualify for SBRR if your property has a rateable value under 15,000 and it is your only commercial property. Full 100% relief applies for RVs under 12,000.
Key Facts
In Detail
Small Business Rate Relief (SBRR) is available to businesses that occupy a single commercial property with a rateable value below 15,000. The relief is tiered: properties with an RV up to 12,000 receive 100% relief (meaning you pay no business rates at all), while those between 12,001 and 15,000 receive tapered relief on a sliding scale down to 0%. To qualify, the property must be your only commercial premises. However, there is an exception: you can still qualify if you occupy additional properties, provided each additional property has a rateable value below 2,900 and the total RV of all your properties is below 20,000. In this case, you receive relief only on your main property. SBRR is not automatic. You must apply to your local council. Many small hospitality businesses, from cafes and takeaways to independent pubs and small restaurants, are eligible but have never applied. If you qualify for 100% relief, you could be saving thousands of pounds per year.
Eligibility Checklist
To determine your eligibility: (1) Check your rateable value on the VOA website. (2) Confirm it is below 15,000. (3) Confirm you do not occupy any other commercial properties (or that additional properties each have RV below 2,900 with total under 20,000). (4) If all conditions are met, apply to your local council.
The Taper Calculation
Between 12,001 and 15,000, relief tapers linearly. The formula is: relief percentage = ((15,000 - RV) / 3,000) x 100. So an RV of 12,500 gives 83% relief. An RV of 13,500 gives 50% relief. An RV of 14,500 gives 17% relief. Even partial relief can save hundreds of pounds per year.
Frequently Asked Questions
Can I claim SBRR if I run my business from home?
If you have a separate commercial property (such as a shop or restaurant) with RV under 15,000 and do not occupy other commercial properties, you can claim SBRR on that property. Your home is not a commercial property for rates purposes unless part of it is rated separately for business use.
What if I have two properties?
You can still claim SBRR on your main property if each additional property has an RV below 2,900 and your total RV across all properties is below 20,000. If any additional property has RV of 2,900 or above, you lose SBRR eligibility.
Simplify food safety compliance
Paddl automates temperature logs, HACCP plans, SFBB records, and more - so you always have the answer when an inspector asks.