Small Business Rate Relief
If the sole or main property is shown on the rating list with a rateable value which does not exceed £12,000 can receive up to 100% relief.
For a rateable value of between £12,001 and £15,000 the ratepayer may receive a tapered relief on a sliding scale from 100% down to 0%.
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 £2,900.
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 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.
However, 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. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact their local authority. 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 local authority by a ratepayer who is in receipt of relief (other changes will be picked up by the local authority). 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.
Levels of Small Business Rate Relief (SBRR) for the period 1 April 2018 to 31 March 2019
Providing a ratepayer qualifies for SBRR, reductions are governed as follows:
Rateable values between £1 - £12,000
Business rates will be calculated using the small business rate multiplier and receive 100% relief on the amount payable.
Rateable values between £12,001 - £15,000
Business rates will be calculated using the small business rate multiplier and relief will decrease from 100% to 0% on a sliding scale of approximately 2% for every £120 of rateable value. The single occupancy criterion still applies for this range of rateable values.
Rateable values between £15,001 - £50,999
Business rates will be calculated using the small business rate multiplier on every qualifying property automatically; therefore there is no need for a ratepayer to complete a SBRR application form.
The Small Business Rate Multiplier
The small business rate multiplier is 0.491 for the financial year 1 April 2019 to 31 March 2020.
The full standard NNDR multiplier is 0.504 for the financial year 1 April 2019 to 31 March 2020.