Small Business Rate Relief
Small Business Rate Relief
From 1st April 2005 the Government introduced the Small Business Rate Relief Scheme, intended to ease the rate burden on small businesses.
Unlike transitional relief, entitlement to small business rate relief is not automatic. An application must be made to receive any of the relief that is available up to £15,000 rateable value.
The application needs to be renewed as soon as possible at the start of every financial year as there is a time limit within which we need to award the relief. The latest we can grant it is six months after the end of the financial year the application relates to.
To receive the reduction the following requirements need to be met:
If there is an entitlement to mandatory relief, small business rate relief will not apply.
Any transitional relief will be applied before small business rate relief.
Businesses with a rateable value up to £5,000 will receive a reduction of up to 50% in their business rate bill. For businesses with a rateable value above £5,000 but less than £10,000, the amount of relief that can be given decreases in percentage terms on a sliding scale between 49% and 1% up to and including the threshold figure of £10,000 rateable value.
Businesses with a rateable value above £10,000 but less than £15,000 will not receive the relief, but will have their rates bill calculated using a multiplier that is lower than the standard one which is applied to all businesses above £15,000 rateable value.
For 2005/06, the standard business rate multiplier is £0.422 pence in the pound, while the small business rate relief multiplier is £0.415 pence in the pound.
To help finance the small business rate relief scheme, properties with a rateable value of £10,000 or more will be charged a rate multiplier supplement. From 1st April 2005 the supplement is £0.007 pence in the pound and will be shown on your bill.
To request a small business rate relief application form, please click here.
Please note that it is a criminal offence to give false or misleading information when making an application for small business rate relief.
From 1st April 2005 the Government introduced the Small Business Rate Relief Scheme, intended to ease the rate burden on small businesses.
Unlike transitional relief, entitlement to small business rate relief is not automatic. An application must be made to receive any of the relief that is available up to £15,000 rateable value.
The application needs to be renewed as soon as possible at the start of every financial year as there is a time limit within which we need to award the relief. The latest we can grant it is six months after the end of the financial year the application relates to.
To receive the reduction the following requirements need to be met:
- The rateable value of the property needs to be under £15,000 at the 1st April. New properties or any created from a split or merger after 1st April will not qualify until 1st April of the following year.
- The ratepayer must occupy only one property in England, or have only one main property, with additional properties in England that are also occupied, none of which have a rateable value above £2,200. The combined rateable value of all the ratepayer’s properties must not be more than £15,000. The charge for the additional properties that have a rateable value below £2,200 will be based on the higher, standard multiplier.
- As entitlement is granted on a daily basis, the relief will change if the property’s rateable value alters and the rateable value goes above or below the £15,000 threshold. If the small business rate relief criteria are met following a change in rateable value an application needs to be made within six months after the date of the rateable value change is notified.
If there is an entitlement to mandatory relief, small business rate relief will not apply.
Any transitional relief will be applied before small business rate relief.
Businesses with a rateable value up to £5,000 will receive a reduction of up to 50% in their business rate bill. For businesses with a rateable value above £5,000 but less than £10,000, the amount of relief that can be given decreases in percentage terms on a sliding scale between 49% and 1% up to and including the threshold figure of £10,000 rateable value.
Businesses with a rateable value above £10,000 but less than £15,000 will not receive the relief, but will have their rates bill calculated using a multiplier that is lower than the standard one which is applied to all businesses above £15,000 rateable value.
For 2005/06, the standard business rate multiplier is £0.422 pence in the pound, while the small business rate relief multiplier is £0.415 pence in the pound.
To help finance the small business rate relief scheme, properties with a rateable value of £10,000 or more will be charged a rate multiplier supplement. From 1st April 2005 the supplement is £0.007 pence in the pound and will be shown on your bill.
To request a small business rate relief application form, please click here.
Please note that it is a criminal offence to give false or misleading information when making an application for small business rate relief.