Small Business Rate Relief


England

Small Business Rates Relief (SBRR) is available for 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) must not exceed £14,999, or the aggregate rateable value of all properties mentioned in (b), must not exceed £19,999 outside London (£27,999 within London), on every 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.

Ratepayers who satisfy these conditions and whose single or main property has a rateable value of up to £12,000 receive 100% relief for that property. Ratepayers whose single or main property has a rateable value between £12,001 and £14,999 receive tapered relief for that property. From 1 April 2017 all properties with a rateable value under £51,000 are calculated using the small business multiplier.

For the period 1 October 2010 to 31 March 2017, eligible ratepayers who occupy a property with a rateable value of £6,000 or less will receive 100% rate relief rather than the usual 50%. Eligible ratepayers occupying a property with a rateable value of between £6,001 and £12,000 will have their relief calculated on a sliding scale from 100% to 0%.

From 1 April 2014, businesses that take on an additional property which would normally have meant the loss of small business rate relief will be allowed to keep that relief for a period of 12 months.

From 1 April 2017 businesses who as a result of the revaluation are losing some or all of their small business rate relief and, as a result, are facing large increases in their bills will see the increases capped at £50 per month.

Once local authority and HMRC systems are linked, the government will consider the feasibility of replacing SBRR with a business rates allowance for small businesses – this would be applied to a business’s total property portfolio across local authority areas allowing businesses that grow and acquire more property to benefit from relief

Wales

Small business rate relief has been extended in Wales until 31 March 2018. A new permanent scheme will come into force from 2018 onwards.

Under the current scheme, business premises with a rateable value of up to £6,000 will receive 100% relief and those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero.

The following types of business will continue to get relief as follows:

  • premises with a rateable value between £10,501 and £11,000 in receipt of 25% retail relief - all others will receive relief as described above
  • post offices in receipt of 100% or 50% relief
  • registered Child Care premises with a rateable value between £9,001 - £12,000 in receipt of 50% relief

Following the 2017 revaluation transitional relief will be implemented to support ratepayers whose eligibility for SBRR will be affected as a result of the revaluation.

The transitional relief scheme will be introduced to assist ratepayers in receipt of SBRR on 31 March 2017, experiencing a reduction in the percentage of SBRR they are entitled to on 1 April 2017, due to increases in their rateable value following the revaluation.

SBRR will be applied prior to transitional relief. The transitional relief will work by phasing in any resultant increases in liability over a three year period (Year 1 - 25% of increased liability, year 2 - 50% and year 3 - 75%).

Scotland

The small business bonus scheme applies to businesses in Scotland with properties with a combined rateable value of £35,000 or less. The scheme is administered by Scotland's local councils on behalf of the Scottish Government.

The rate relief available is as follows:

Rateable Value of Property

Rate Relief

Up to £15,000

100% (i.e. no rates are payable)

£15,001 to £18,000

25%

Cumulative up to £35,000

25% (on each property with a rateable value under £18,000 – upper limit cumulative RV = £35,000)

The Scottish Government has committed to retain the small business bonus scheme until at least 2021