Owning an empty commercial property is more expensive than many landlords realise. After just a few months of vacancy, business rates kick in – often costing thousands of pounds each year with nothing coming in to offset them.
Thankfully there are effective, legal ways to reduce that liability. One of the best known is Small Business Rates Relief (SBRR) – a government scheme that offers discounted or zero business rates for certain properties. If SBRR doesn’t apply, other solutions exist – including partnering with a registered charity to unlock further relief.
In this guide, we’ll walk you through:
- What business rates relief actually is
- How small business rates relief works
- Who qualifies and how to apply
- Common mistakes to avoid
- How working with VOIDS can deliver long-term savings through charitable occupation
What Is Business Rates Relief?
Business rates are a type of property tax applied to most non-residential properties in the UK. They are calculated using a property’s rateable value, which is set by the Valuation Office Agency (VOA) and represents the property’s estimated rental value on the open market.
Business rates relief is any discount or exemption that reduces the amount owed. Relief schemes exist to support small businesses, charities and landlords with vacant properties. Some are applied automatically, but others – like SBRR – require a formal application.
If your property is empty, you’ll typically receive a short exemption from business rates (usually three months, or six months for warehouses) – but once that period ends, the full charges resume. That’s where understanding relief schemes becomes essential.
What Is Small Business Rates Relief (SBRR)?
SBRR is a government scheme designed to help businesses occupying low-value commercial properties. If the rateable value is below a certain threshold, the occupier may qualify for a significant reduction – and in some cases, a full exemption from business rates.
As of 2025, the rules for England are:
- Properties with a rateable value of £12,000 or less get 100% relief
- Properties with a rateable value between £12,001 and £15,000 receive tapered relief
- Properties above £15,000 do not qualify
Eligibility for the scheme depends not only depends on the value of the property but also how many properties the ratepayer occupies. Relief is typically reserved for businesses that occupy only one property, or one main property with a few very small additional ones.
It is also important to note that SBRR only applies to occupied properties. If your unit is empty – even temporarily – you won’t qualify (see below for information on what to do if you have an empty property).
Who Qualifies and How to Apply
Small Business Rates Relief is open to businesses that:
- Occupy a single property (or a main property with small extras)
- Have a rateable value under £15,000
- Use the property for business purposes
To apply, you’ll usually need to complete a simple form via your local council’s website. Some councils may apply SBRR automatically, but it’s best to check. You may be asked to provide:
- Evidence of occupation (e.g. utility bills, lease documents)
- Details of any additional commercial properties you operate
Once approved, relief may be backdated to the start of the financial year – helping you recover money already paid.
If your tenant is the ratepayer (i.e. the occupier), they are the one who must apply. As a landlord, you are only eligible for relief if you are also the one using the property for business purposes.
Common Pitfalls to Watch Out For
Even straightforward relief schemes can go wrong when the details are missed. Here are a few of the common traps:
- Applying while the property is empty – SBRR is only available to active occupiers. Empty units need a different strategy.
- Owning more than one property – having additional commercial spaces can affect your eligibility, even if those units are small.
- Incomplete documentation – councils often reject applications due to missing or unclear paperwork.
- Assuming charitable or community use qualifies – only registered charities using the space for charitable purposes are entitled to business rates charity relief. Other organisations may not qualify.
What If SBRR Doesn’t Apply?
If your property is empty, or its rateable value is too high, small business rates relief won’t be available. In that case, landlords often find themselves liable for the full business rates after the initial exemption period.
This is where charitable occupation becomes a highly effective alternative.
When a registered charity occupies a commercial space and uses it for charitable purposes, they are usually entitled to 80% mandatory business rates relief. Many local authorities will grant the remaining 20% as discretionary relief – meaning the full amount can be removed.
For landlords, this creates a win–win scenario. Your property is protected, used for a socially beneficial purpose and your business rates liability is reduced or even eliminated altogether.
How VOIDS Can Help
At VOIDS, we specialise in connecting landlords with reputable UK charities that need temporary space. Whether it’s for outreach work, storage, training or community events, these organisations are looking for exactly the type of space that landlords are paying to keep empty.
We manage the entire process – from sourcing the right charity, to drawing up agreements, managing occupation and overseeing a smooth exit when the property needs to be repurposed or re-let.
Our approach is fully legal, transparent, and based on over 30 years of experience in commercial property. Landlords who work with us benefit from:
- Reduced business rates liability
- Improved security for vacant buildings
- Positive PR and community impact
- A hands-off, fully managed process
Small Business Rates Relief is a valuable support scheme – but it only applies in specific situations. It’s designed for small, active occupiers of lower-value properties, and won’t help landlords with empty or high-value units.
For those properties, the most powerful route to business rate mitigation is through charitable occupation. And that’s exactly what VOIDS is here to facilitate.
If your commercial space is standing empty and costing you more each month, now’s the time to take action.
Speak to VOIDS today
We’ll help you turn your empty property into something valuable — for you and your community.
FAQs
What is small business rate relief?
It’s a government scheme that reduces or eliminates business rates for small commercial properties with low rateable values.
Does SBRR apply to landlords?
Only if the landlord is also the occupier. Otherwise, the tenant (if present) is responsible for applying.
Can I get business rates relief on an empty property?
Not through SBRR – but charitable occupation can offer a legal and effective way to reduce your liability.
Is charitable occupation legal?
Yes – as long as the charity is registered and genuinely using the space for its stated charitable purposes. VOIDS ensures compliance throughout.
How quickly can a charity move into my property?
In many cases, we can arrange occupation within 2-4 weeks.