Small Business Rate Relief (SBRR)
Rate relief for businesses with low rateable values, providing 100% relief for RV under 12,000 and tapered relief up to 15,000.
Small Business Rate Relief (SBRR) is one of the most valuable rate reliefs available to UK businesses, yet many eligible businesses do not claim it. If your property has a rateable value of under 12,000 and it is your only commercial property, you qualify for 100% relief, meaning you pay no business rates at all. Between 12,000 and 15,000, relief is tapered on a sliding scale. SBRR is not granted automatically; you must apply to your local council. Many small hospitality businesses, from cafes and takeaways to independent pubs and small restaurants, could be paying nothing in rates but are missing out simply because they have not submitted an application.
Key Points
- 100% relief for properties with RV under 12,000
- Tapered relief between 12,000 and 15,000
- Must be your only commercial property (with minor exceptions)
- You must apply to your local council, it is not automatic
- Can eliminate your business rates bill entirely
Eligibility Requirements
To qualify for SBRR, your property must have a rateable value below 15,000 and you must occupy only one commercial property (or your additional properties must each have an RV below 2,900). If you meet these conditions, relief is calculated as follows: properties with RV up to 12,000 receive 100% relief. Between 12,001 and 15,000, the relief percentage decreases on a sliding scale from 100% to 0%. For example, a property with an RV of 13,500 would receive approximately 50% relief.
How to Apply
Contact your local council business rates team to apply for SBRR. Most councils have an application form on their website. You will need to confirm that the property is your only commercial premises and provide your business details. Once approved, the relief is applied to your bill for the current year and continues until your circumstances change (such as acquiring a second property or your RV changing at revaluation).
Interaction with Other Reliefs
SBRR is generally the most beneficial relief for properties with very low RVs, as it can eliminate your bill entirely. However, it cannot be combined with certain other reliefs. Charitable rate relief, for example, is usually more beneficial for charities with higher RVs. Your local authority will typically apply whichever relief gives you the greatest reduction, but it is worth checking that the most advantageous option has been selected.
Frequently Asked Questions
Can I claim SBRR if I have two properties?
You can still claim if your additional properties each have an RV below 2,900 and the total RV of all your properties is below 20,000. However, you will only receive relief on your main property. If any additional property has an RV of 2,900 or above, you lose SBRR eligibility.
Do I need to reapply for SBRR every year?
Generally not. Once granted, SBRR continues until your circumstances change. However, if your rateable value changes at revaluation or you acquire additional properties, you must notify your council. Some councils also ask for periodic confirmation of eligibility.
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