Small business rate relief

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This relief is only available to ratepayers who apply to their local authority and 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), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above these levels, relief will cease from the day of the increase.Ratepayers who satisfy these conditions will have the bill for their sole or main property calculated using the lower small business non-domestic rating multiplier rather than the national non-domestic rating multiplier that is used to calculate the liability of other businesses.From 1 April 2014, ratepayers who take on an additional property which would currently disqualify them from receiving relief will continue to receive their current relief for 12 months.

If an application for relief is granted, the ratepayer will not need to re-apply for relief in each new valuation period, providing the conditions for relief apply at the relevant time, for both the property and the ratepayer.

When you have a change in circumstance, it may affect your small business rate relief.

Please notify us immediately of either of the following changes:

  • The ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief.
  • 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.

Notification of these changes must be given to the local authority within four weeks of the day after the day on which the change happened. If this happens, there will be no interruption to the ratepayer’s entitlement to the relief.

A notification that the ratepayer has taken up occupation of an additional property must be by way of a fresh application for relief.

Notice of an increase in rateable value must be given in writing.

A temporary increase in Small Business Rate Relief started on 1 October 2010 and continued until 31 March 2017.  The increase has been made permanent from 1 April 2017

Until 31 March 2017, 100 per cent relief was given (doubled from the usual rate of 50 per cent) for properties with a rateable value of £6,000 or less.

The rate of relief gradually decreased from 100 per cent to 0 per cent for properties with a rateable value between £6,001 and £12,000.

From 1 April 2017, 100 per cent relief is applicable for properties with a rateable value of £12,000 or less. The rate of relief will gradually decrease from 100 per cent to 0 per cent for properties with a rateable value between £12,000 and £14,999. A lower multiplier will be used for properties with a rateable value of between £0 and £50,999 if not subject to mandatory relief.

For full details on the eligibility criteria and on how to apply for this relief, please contact the NNDR team.