Last edited 05 Jun 2014

Rate relief schemes for small business

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[edit] Small business rate relief

You will be eligible for a discount under the small business rate relief scheme in England if you only occupy one property and it has a rateable value below £12,000.

The Government has temporarily doubled the level of relief available. Between 1 October 2010 and 31 March 2013, eligible rate payers will receive small business rate relief at 100 per cent on properties up to £6,000 (rather than 50 per cent), and a tapering relief from 100 per cent to 0 per cent for properties up to £12,000 in rateable value for that period.

The temporary Small Business Rate Relief increase will therefore apply throughout the whole of the 2012-13 billing year. The relief was originally doubled by the government until September 2011, but this was extended by the Budget in March 2011, and then extended again in the 2011 Autumn Statement to take account of economic conditions.

If you have more than one business property, the discount is only available if the rateable value of each of the other properties is below £2,600. If this is the case, the rateable values of all the properties will be combined and the relief is applied to the main property based on the total rateable value.

However, if you occupy a property with a rateable value below £18,000 (£25,500 in London), and you are not receiving a different mandatory relief, you will be eligible to have your bill calculated using the small business multiplier, regardless of the number of properties you occupy.

The Government has also simplified the process for claiming the relief by removing the legal requirement for an application form in order to claim the relief. However, if you are not receiving the relief and you think that you are eligible, you should contact your local billing authority.

[edit] Small business rate relief in Wales

You will be eligible for small business rate relief if your rateable value is below certain levels:

  • If you have business premises with a 2010 rateable value up to £2,400 (except beach huts, adverts or car park spaces, sewage works or communication sites), your bill will be reduced by 50 per cent.
  • If you have business premises with a 2010 rateable value between £2,401 and £7,800 (excluding beach huts, adverts or car park spaces, sewage works or communication sites), your bill will be reduced by 25 per cent.
  • If you have a post office with a 2010 rateable value up to £9,000, your bill will be reduced by 100 per cent.
  • If you have a post office with a 2010 rateable value between £9,001 and £12,000, your bill will be reduced by 50 per cent.
  • If you have registered child-care premises with a 2010 rateable value up to £12,000, your bill will be reduced by 50 per cent.
  • If you have retail premises with a 2010 rateable value between £7,801 and £11,000 (including restaurants, pubs and petrol filling stations), your bill will be reduced by 25 per cent. If you occupy more than one property, only one can be chosen to receive relief.
  • If you have a property occupied by a registered Credit Union with a 2010 rateable value up to £9,000, your bill will be reduced by 50 per cent.

There are a small number of instances where businesses received a higher rate of relief under the scheme operating before 1 October 2010 than under the current scheme - in these instances they will receive the rate of relief that is most beneficial to them.

The following will not be affected by the temporary changes:

  • Premises with rateable value between £10,501 and £11,000 in receipt of 25 per cent retail relief.
  • Post offices in receipt of 100 per cent or 50 per cent relief.
  • Registered child care premises with rateable value £9,001 - £12,000 in receipt of 50 per cent relief.

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