Small Business Rates Relief

Small businesses with a rateable value of up to £12,000 may qualify for a reduction from their full rate bill. The cost of this relief is paid for by all other ratepayers. Small businesses which qualify, with a rateable value of less than £18,000, will have a lower multiplier used to work out their rate bill. Since 1 October 2010 the Government has increased the level of discount available to those who qualify for Small Business Rates Relief.

For example:

  • businesses with a rateable value of less than £6,000, who previously received a 50% discount, would get a 100% discount from 1 October 2010. 
  • businesses with a rateable value of £9,000 originally were eligible for a 25% discount, but this would increase to 50% from 1 October 2010.

Businesses with a rateable value between £6,001 and £12,000 will be entitled to relief on a sliding scale between 100% and 0%, as well as having their bill calculated on the basis of the small business rate multiplier.

For businesses with a rateable value of between £12,001 and £18,000, there is no discount, but the business will continue to be entitled to have their rates bill calculated using the small business rate multiplier.

The new levels of relief are currently applicable until 31 March 2016.

Do I need to meet any criteria?

Small Business Rates Relief is available to all businesses who occupy property with a rateable value of less than £18,000. To qualify for the relief, businesses must satisfy their local authority that:

  • the sole or main property they occupy must have a rateable value of less than £18,000 and 
  • if they occupy any additional properties, each of the additional properties must have a rateable value of less than £2,600, and the total rateable value of all of their properties must be less than £18,000, in which case the relief would be applied to the property with the highest rateable value. Also businesses can occupy an additional property with a rateable value below £18,000, without losing entitlement to the relief on their original property, for an initial period of 12 months.