Small Business Rate Relief
On 1 April 2005, the Government introduced a
Small Business Rate Relief Scheme (SBRR). Under this scheme
the Government set two multipliers each year to calculate the
business rate liability based on the rateable value of each
property. A higher multiplier was set for businesses who do
not qualify for small business rate relief or have not made an
application. A lower multiplier was set for business who
do qualify. The multipliers for 2012/13 are £0.458 and £0.450.
Ratepayers who are not entitled to other mandatory relief or are
liable for unoccupied property rates and occupy a property with a
rateable value which does not exceed £17,999 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 £12,000, the
ratepayer will receive a percentage reduction in their rates bill
for this property of up to a maximum of 50 per cent for a
property with a rateable value of not more than £6,000. This
percentage reduction (relief) is only available to ratepayers who
occupy either:
- one property, or
- one main property and other additional properties
providing those additional properties each have a rateable value
which does not exceed £2,599.
The rateable value of the property mentioned in (1), or the
aggregate rateable value of all the properties mentioned in (2),
must not exceed £17,999 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.
An application for SBRR is not required. Where a ratepayer meets
the eligibility criteria and has not received 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,
and
- 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.
More information is available in the business rates information
leaflet 2012/13.