Small Business Rate Relief (SBRR)

Small Business Rate Relief (SBRR) was introduced from 1 April 2005 to help small businesses.

Who qualifies for SBRR?

To qualify for SBRR in London a business must occupy either:

a)  one property with a rateable value under £25,500, or
b)  one main property and other additional properties with an aggregate value of less than £25,500, where each of the additional properties have a rateable value of less than £2,600 (an example of an additional property might be a car space).

If a business has more than one property as described in b), SBRR will only apply to the main property.

Ratepayers currently in receipt of small business rates relief do not need to reapply. If ratepayers cease to qualify for small business rates relief they must notify the rates office.

How to apply for Small Business Rate Relief

To apply for Small Business Rate Relief complete and return the form below:

• Application form in Word format (file size 66Kb)
• Application form in PDF format (file size 60Kb)

Applications for SBRR must be made no later than 30 September in the year following the financial year to which the application relates. The only exception to this is where, following an alteration to the rating list, a business qualifies for SBRR under a) or b) above. In this situation, the business has six months to make an application starting on the date when the change to the rating list is notified by the Valuation Office Agency to the Council.

If a business receiving SBRR ceases to meet the qualifying requirements, SBRR will cease from the date the requirements are no longer met.

How much Small Business Rate Relief can be granted?

The Government has extended its temporary increase in the levels of SBRR for a further year to 30 September 2012. This means that the increased levels of relief apply for the period 1 October 2010 to 30 September 2012.

Levels of SBRR for the period 1 October 2010 to 30 September 2012

• Rateable value between £1 – £6,000
  Business rates will be calculated using the small business rate multiplier and receive 100% relief on the amount payable. 
• Rateable value between £6,001 – £12,000
  Business rates will be calculated using the small business rate multiplier and relief will decrease from 100 per cent to 0 per cent on a sliding scale of approximately 2 per cent for every £120 of rateable value.
• Rateable value between £12,001 – 25,500
  Business rates will be calculated using the small business rate multiplier
  Levels of SBRR for the period to 1 April 2010 to 30 September 2010 and the period from 1 October 2012 onwards

The Small Business Rate Multiplier

The small business rate multiplier is 40.7 pence for the financial year 1 April 2010 to 31 March 2011 and 42.6 pence for the financial year 1 April 2011 to 31 March 2012.

How do other reliefs affect SBRR?

Where a property is eligible for charitable relief and small business rates relief, charitable relief only will apply. Any transitional relief will be applied before any small business rate relief is applied.