Small Business Rate Relief

In England small businesses are generally entitled to small business rate relief if they only occupy one property and the rateable value of their premises is less than £51,000 from 1st April 2017

Businesses who only have one property can claim 100% relief from Business Rates if their premises have a rateable value below £12,000.

Tapered relief is also available to businesses who have only one property with a rateable value between £12,001 and £15,000. The relief reduces from 100% by 1% for every £30 of rateable value between £12,001 and £15,000.

The qualifying criteria is that the ratepayer occupies either -

  1. one property, or
  2. one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,900

The rateable value of the property mentioned in 1 above, or the aggregate rateable value of all the properties mentioned in2, 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 values, increases above those levels, relief will cease from the day of the increase.

Ratepayers who satisfy these conditions will have the bill for their sole or main property calculated using the lower small business non-domestic rating multiplier rather than the national non-domestic rating multiplier that is used to calculate the liability of other businesses.

If an application for relief is granted, provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will not need to re-apply for relief in each new valuation period.

Certain changes in circumstances will need to be notified to the local authority by the ratepayer. The changes which must be notified are -

  1. the ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief, and
  2. 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.

Notification of these changes must be given to the local authority within 4 weeks of the day after the day the change happened. If this happens, there will be no interruption to the ratepayer's entitlement to the relief. A notification that the ratepayer has taken up occupation of an additional property must be by way of a fresh application for relief. Notice of an increase in rateable value must be given in writing.

If the rateable value is between £15,001 and £50,999, rates are calculated using the small business multiplier.

For 2017-18, the small business multiplier is 46.6 pence (instead of the standard 47.9 pence)

Businesses with rateable values under £12,000 must apply for Small Business Rate Relief in order to benefit.  

To apply please email or contact the Business Rates Team on 01895 837540