Small business rate relief
For an application form, please see the right hand downloads menu. Alternatively, if applying for relief after 1st April 2012 you can submit a claim in writing or by email to email@example.com.
How does it work?
The scheme operates as follows:
From 1st April 2010, two non-domestic rate multipliers are set by central government – the normal multiplier and a lower, small-business multiplier. The amount of relief granted will be dependent on the rateable value of the eligible property that you occupy and will be calculated as follows:
If you occupy an eligible property with a rateable value of £6000 or less, your non-domestic rate will be calculated using the lower small-business multiplier. In addition, you will qualify for a further 50% reduction on your bill. This 50% reduction was temporarily increased to 100% reduction from 1st October 2010 to 31st March 2015.
If you occupy an eligible property with a rateable value of more than £6000 and not more than £12,000, your bill will also be calculated using the lower small-business multiplier. In addition, you will qualify for further relief depending on the actual rateable value of your property. You will receive a 50% reduction, less approximately 1% for every £120 that the rateable value exceeds £6000 on a sliding scale up to £12,000. This reduction was increased to 100% less approximately 2% for every £120 that your rateable value exceeds £6000 for the period 1st October 2010 to 31st March 2015.
The table below is a guide to these reductions
From 01/10/2010 - 31/03/2015
If you occupy an eligible property with a rateable value of more than £12,000 and less than £18,000 your bill will be calculated using the lower small-business multiplier only. You will not receive any further relief. From 1st April 2012 this will be automatically applied to the account, and can be applied to more than one property. No claim need be submitted.
Which properties are eligible?
An eligible property is a property where you are in occupation of:
- A Property with a Rateable Value less than £18,000
- Only one non-domestic property in England or, one main non-domestic property and other additional non-domestic properties in England, providing that the additional properties have individual rateable values of less than £2,600 and the combined rateable values of all the properties is less than £18,000.
In the second case the relief will be applied to the main property only, but the charge on the additional properties will be based on the lower rating multiplier. From 1st April 2014, and for 12 months only, the Government has confirmed that if an additional property is taken on with an RV of less than £2,600 (which would normally have meant the loss of Small Business Rate Relief) they will be able to keep that relief for 12 months.
- If a ratepayer occupies a property after 1st April, but that property was in the local list on 1st April, relief can be awarded from the date of occupation.
- An application form must be completed and returned to the billing authority for relief up to 31st March 2012.
- The application must be by 30th September in the financial year following the valuation period you are applying for, or 6 months after the rating authority is notified of the alteration to the list (whichever is latest).
- The requirement to complete an application was removed from 1st April 2012 and your request for relief can be in writing or by e-mailing firstname.lastname@example.org
Your rateable value can be found on your business rate bill, or on the Valuation Office website:
Backdating of SBRR
New applications can be backdated to 1st April 2010 but for applications prior to 1st April 2012 the Small Business Rate Relief Application, available on the download menu to the right of this page, must be completed.
Interaction with other reliefs
If you are entitled to 80% mandatory relief as a charitable body and small-business rate relief, you will receive 80% mandatory relief only.
If you are entitled to 50% mandatory rural relief and small-business rate relief, you will receive 50% mandatory rural relief only.
If you are in receipt of Discretionary Rate Relief, which includes Retail Relief, you may still qualify.
Changes in circumstances
From 1st October 2006 ratepayers are obliged to notify the Council awarding small business rate relief of the following:
- Increases in the rateable value of a property occupied by the ratepayer that is not in the area of the billing authority granting small business rate relief. This must be notified in writing within 4 weeks of the increase.
- Occupation of a property not mentioned when originally applying for relief.
If a ratepayer does not notify the billing authority of the above within the 4 week period, they will lose relief from the date of the change / occupation until the date they do notify the authority.
The cost of this relief is paid for by other ratepayers and it is a criminal offence for a ratepayer to provide false information when making an application for small business rate relief.
What do you need to do?
If you think that you meet the criteria, but have not submitted a claim for small business rate relief, you should contact your local authority to see if you are entitled to support.
For further information see the GOV.UK business rates relief website.