Small business rate relief
Small business rate relief is available to ratepayers who occupy a property with a rateable value which does not exceed £50,999 and who are not entitled to another mandatory relief. Qualifying ratepayers will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
In addition, 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 rates for this property of up to a maximum of 100 percent. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100 percent reduction in their rates bill.
This percentage reduction (relief) is only available to ratepayers who occupy either:
(a) one property,
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.
In London the rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £27,999 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 twelve months.
An application for small business rate relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact the council. 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 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 the council). The changes which should be notified are:
- the ratepayer taking up occupation of an additional property
- an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the council which granted the relief.