Small business rate relief

Small Business Rates Relief (SBRR) came into effect from 1 April 2005 and can have a significant impact on non domestic rates charges.

The Government introduced a rate relief 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.

Prior to 2007/2008 an annual application had to be completed, however this procedure has changed and from 2007/2008 one SBRR application can be made and will last the life of the current rating list.

Prior to 1 April 2009 the property had to be in the Rating List on 1 April of each year to be eligible for SBRR for that financial year. However from 1 April 2009, this restriction has been lifted and if a property is brought into the Rating List throughout the year the ratepayer can apply for the relief immediately and does not have to wait until the next financial year to apply.

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).

Conditions for application

• The rate payer occupies only one property in England.

• Rateable value is not more than the maximum (£14,999), 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 £2,199 and the aggregate of ALL properties in England occupied by the ratepayer is not more than the maximum (£14,999).

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

Applications can be accepted not before 1 October preceding the start of the relevant financial year.

If the Rating List is altered, no later than six months after the date on which the billing authority concerned is notified by the Valuation Office Agency of the alteration – whichever is later.

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.