Small Business Rate Relief

Small Business Rate Relief was introduced to help small businesses.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill.

  • If your rateable value is below £12,000 your bill will be reduced by 100% until 31 March 2022, if it is the only business premises that you occupy.
  • If your rateable value is between £12,000 and £14,999 inclusive, the small business rate multiplier is used and your bill is reduced on a sliding sacle.
  • If your rateable value is between £15,000 and £50,999 only the small business rate multiplier is used.

Generally, this percentage reduction (relief) is only available to ratepayers who occupy either-
(a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.

The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought.

If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase. The Government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that they will be allowed to keep that relief for a period of 12 months.

An application for Small Business Rate Relief is not required. If you believe you meet the eligibility criteria and have not received the relief please contact us. Provided you continue to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, you will automatically continue to receive relief in each new valuation period.

Certain changes in circumstances will need to be notified to the Council by a ratepayer who is in receipt of relief (other changes will be picked up by us). The changes which should be notified are-
(a) the ratepayer taking up occupation of an additional property, and
(b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.

For more information call 01462 474668.