Small Business Rate Relief: Thresholds and How It Works

Small Business Rate Relief (SBRR) can reduce a business rates bill to zero. It matters to commercial landlords because it shapes what a tenant actually pays, and because it does not apply to empty property.

The thresholds

SBRR applies to occupied property in England:

• Rateable value 12,000 or below: 100% relief, so no rates are payable.
• Rateable value 12,001 to 15,000: tapered relief, reducing on a sliding scale from 100% down to 0%.
• Rateable value above 15,000: no SBRR, though the small-business multiplier still applies up to 50,999.

The taper is linear. At a rateable value of 13,500, for example, relief is roughly 50%.

Who claims it

SBRR is the occupier's relief. On a let property the tenant claims it, not the landlord. It is generally available on one property, or on a main property plus small additional ones within limits. It is worth understanding when you market a small unit, because the rates a tenant will really pay affect the rent they can afford.

It does not apply to empty property

An empty property gets no SBRR. Once the rate-free void period ends, an empty small unit is charged at the ordinary multiplier for its rateable value band. See empty property rates.

Check the numbers

The Business Rates Calculator can model SBRR for an occupied property so you can see the likely bill.

Can a landlord claim Small Business Rate Relief?

SBRR is the occupier's relief, so on a let property the tenant claims it, not the landlord. It does not apply to empty property.

At what rateable value does SBRR stop?

You get 100% relief at 12,000 or below, tapered relief to 15,000, and no SBRR above 15,000, though the small-business multiplier still applies up to 50,999.