Small Business Rate Relief
The doubling of Small Business Rate Relief has been extended until 1 April 2016!
Following a review, the Government acknowledged that more assistance should be given to small, single property businesses, and consequently introduced the Small Business Rate Relief Scheme (SBRR).
The scheme is funded by a supplement on the rate bills of ratepayers who do not meet the criteria.
- Ratepayers who only occupy 1 property in England with a rateable value of less than £12,000, or ratepayers who only occupy one main property in England with a rateable value less than £12,000 and other additional properties, providing those additional properties have rateable values less than £2,600 and the total value of all the properties is below £18,000.
- Ratepayers who meet the criteria but their rateable value is above £12,000 and below £18,000 will be within the "buffer zone". Although these ratepayers will not qualify for small business rate relief, their rate bill will be calculated on the small business non-domestic rating multiplier.
- Ratepayers can only claim relief in respect of one property. However, you may now continue to receive SBRR for a period of 12 months further to occupying another property.
- Ratepayers must meet the criteria on every chargeable day for which they are claiming relief.
How much relief will I get? The Scheme prior to 1 October 2010
- Eligible properties with a rateable value of less than £6,000 will receive 50% relief. This relief will decrease on a sliding scale of 1% for every £120 in rateable value over £6,000 and up to £12,000, at which point no relief is applicable.
- In addition, eligible properties will have their rate bill calculated on the small business non-domestic rating multiplier.
Notification of changes
A condition of entitlement to Small Business Rate Relief will be that a ratepayer must notify the billing authority of particular changes in circumstances that may affect their entitlement to the relief, within four weeks starting on the day after the change occurred. These changes are:
- increases in the rateable value of a property occupied by the ratepayer which is not in the area of the billing authority granting Small Business Rate Relief - these changes will have to be notified in writing; and
- the ratepayer coming into occupation of any property which is not mentioned in their application for relief - these changes will have to be notified through a fresh application for relief.
If compliance is not made in accordance with the criteria or no application is made, small business rate relief will not be awarded and your rate bill will be calculated on the relevant non-domestic rating multiplier.
Small Business Rate Relief
Budget Announcement regarding Business Relief Rate
This is important news that could benefit your business. The Autumn Statement released on 5 December 2013 announced the Governments intention to further extend the temporary increase in the level of Small Business Rates Relief (SBRR) until April 2016.
The Chancellor of the Exchequer has announced that the Government will extend the increased level of relief for small businesses. This will temporarily increase the level of SBRR so that eligible ratepayers will pay no rates on properties with rateable values up to £6,000, with a tapered relief between 100% and 0% for properties with rateable values between £6,001 and £12,000. The levels of relief have now been available from 1 October 2010 and will not be amended until 31 March 2016.
Whilst we cannot be certain of the Governments intentions from 1 April 2016, please ensure you make provision for changes to the Small Business Rate Relief scheme which will potentially increase the amount of rates you have to pay.
A further adjustment to the scheme states you may occupy more than one property in order to qualify for your rates being calculated using the Small Business Multiplier; however in terms of the discount (i.e. relief in addition to having the liability calculated by reference to the small business multiplier), the criteria of only one property is applicable for eligibility. All other eligibility criteria remain the same. The Government has confirmed that it will meet the costs of the increased levels of relief. There will be no changes to the multiplier so those businesses that do not fall within the eligibility criteria of the scheme will see no change in their bills.
The Government is making this change to the SBRR scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing again.
From April 2017, small businesses that occupy properties with a rateable value of £12,000 or less will pay no business rates.
From 1 April 2017 the government has also said it will:
- Permanently double Small Business Rate Relief (SBRR) from 50 per cent to 100 per cent and increase the thresholds to benefit a greater number of businesses. Businesses with a property with a rateable value of £12,000 and below will receive 100 per cent relief. Businesses with a property with a rateable value between £12,000 and £15,000 will receive tapered relief. 600,000 small businesses, occupiers of a third of all properties, will pay no business rates at all - a saving worth up to £5,900 in 2017-18. An additional 50,000 will benefit from tapered relief.
Increase the threshold for the standard business-rates multiplier to a rateable value of £51,000, taking 250,000 smaller properties out of the higher rate. This will reduce business rates for many small businesses - including some high-street shops.
More budget announcements to come - Please check this website for changes that may benefit you!
What do you need to do?
For those already claiming small business rate relief, there is no need for you to do anything else at this stage. From 1 April 2013 you will receive a new bill showing the adjustments to small business rate relief from this date.
If you think that you meet the criteria, but have not yet applied, please contact the Business Rates Team to see if you are entitled to support on 0161 342 2045 or firstname.lastname@example.org. Alternatively you may wish to complete and return an application form.
If you meet the criteria, view the SBRR application form (0.02MB)