Small business rate relief

From 1st April 2005, the Government introduced a Small Business Rates Relief (SBRR) scheme to help the occupiers of small businesses. To qualify for small business rate relief, each business or individual must apply to their Local Authority.

One SBRR application can be made and will last the life of the current rating list. Applications for small business rates relief from 1st October 2010, can only be backdated to 1st April 2010, unless there has been an alteration to the Rating List e.g. because of a successful appeal which results in a backdated reduction in rateable value.

Threshold values 01/04/05 - 31/03/10

To qualify the maximum rateable value to be eligible for small business rate relief is £14,999.
• Up to RV £5,000 – 50 per cent relief
• Between £5000 and £9,999 – relief decreases on a sliding scale at an approximate rate of 1 per cent relief for each £100 increase in rateable value
• Above RV £10,000 – Charge calculated using the lower multiplier (rate in the pound).

01/04/10 - 31/03/15 Changes to threshold values to qualify for SBRR

With effect from 1st April 2010 the threshold value to qualify for SBRR has been amended to £17,999.
• Up to RV £6,000 – 50 per cent relief
• Between £6,000 and £11,999 – relief decreases on a sliding scale at an approximate rate of 1 per cent relief for each £120 increase in rateable value
• Above RV £12,000 – Charge calculated using the lower multiplier (rate in the pound).

Conditions for application

• The rate payer occupies only one property in England.

• Rateable value is not more than the maximum (£17,999), on the chargeable day.

• The rate payers’ occupation of other properties shall be disregarded where:

• The rateable value shown in the rating list for the additional property is not more than £2,599 and the aggregate of ALL properties in England occupied by the ratepayer is not more than the maximum (£17,999).

Relief will be based on the rateable value of the qualifying property and second properties will get no relief.

General information

Transition will be calculated first and SBRR will be applied afterwards.

If a ratepayer is in receipt of charity/rural relief then they will receive that relief rather SBRR.

Rateable value increase above the maximum rateable value will disqualify the property for relief for the remainder of the year.

See the page 'Temporary increase in level of Small Business Rates Relief' for an update on recent changes to the scheme.