Small Business Rate Relief
Small Business Rate Relief was introduced on 1 April
2005 and can offer significant reductions in the rates bills for
ratepayers that qualify for the relief.
This is available at 50% for all qualifying ratepayers with a RV
below 6,0000, with relief declining on a sliding scale until Zero %
is reached at 12,000.
The frequently asked questions listed below provide links to
detailed information about Small Business Rate Relief:
How do
you qualify for relief?
How can I
apply?
Can I
claim relief for my empty property?
My rateable value
has been reduced to below £18,000 do I now qualify for
relief?
I have two businesses, can
I claim relief for each business?
I already
receive charitable/rural rate relief can I claim Small Business
Rate Relief as well?
How do you qualify for relief?
To qualify for small business rate relief the following
conditions must be satisfied;
- You must only occupy one property in England (subject
to the exception listed below).
- The rateable value on the day for which you require relief and
for every day in between must be below 18,000
- You must make an application in writing.
When deciding how many
properties you occupy any additional properties with a rateable
value below £2,600 are not counted, provided that the total
rateable value of all the properties occupied is below £18,000.
Examples
If you occupied one property with a rateable value of £7,000 and
two with a rateable value of £2,000 you would qualify for the
relief because the two smaller properties would not be counted.
If you occupied one property with a rateable value of £7,000 and
six with a rateable value of £2,000 you would not qualify because
the total rateable value of all the properties that you occupy is
above £18,000.
How can I apply?
To qualify for the relief you must make an
application. There are limits on how long you have to apply so
you should do so as soon as possible. You must apply by completing
one of our application
forms 
(46.44
KB).
From the 1st April 2010 all businesses currently receiving this
relief will continue to receive this relief, provided they remain
eligible to do so.
Can I claim relief for my empty
property?
Small Business Rate Relief can not be claimed for unoccupied
properties. For information on the rates payable for empty
properties you should refer to reliefs for
empty or partially empty properties.
My rateable value has been
reduced to below £18,000 do I now qualify for relief?
Yes, provided that you are eligible to receive it.
I have two businesses, can I claim
relief for each business?
This depends on the circumstances of the particular case.
To qualify for relief the ratepayer can only occupy one
business property in England. Only a legal person (individual
or body) can be liable for rates and the ratepayer is the legal
person in occupation of the property.
Where a company occupies a property (e.g. ABC Limited), it is
the company which is the legal person liable for rates and not the
individual that owns or runs the company. This is because
companies are separate legal entities. Where a partnership
occupies a property each of the partners is jointly and severally
liable for the rates. Where an individual occupies as a sole
trader then the individual is liable.
If you have two businesses whether you qualify for small
business rate relief will depend on the trading status of the
businesses. If you have two businesses both of which you
operate as a sole trader from their own business premises you will
not be able to claim relief for either business. If you
operate as a sole trader from one business premises and operate a
separate business as a partner in a partnership you will not be
able to claim the relief. However if you operate one business
as a sole trader and run another business as a Limited Company then
both you as a sole trader and the company will be able to apply for
the relief.
I already receive
Charitable/Rural rate relief can I claim Small Business Rate Relief
as well?
No, you are not able to claim small business rate relief if you
receive mandatory charitable relief, mandatory rural rate relief or
relief for former agricultural premises.
