SMALL BUSINESS
RATES RELIEF

 


 
 
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With the small business rate relief scheme, people can claim up to fifty percent of their rates back. (See also information on business rates holiday). In England, People may be entitled to small business rate relief if the rateable value of their property is £18,000 or less (in London the upper limit is £25,500). For businesses with rateable values below these levels, the small business rate multiplier is used to calculate rate bills. There are additional forms of relief for those with small rateable values. If the rateable value is £6,000 or less the rates bill is reduced by 50%. For rateable values between £6,001 and £11,999 inclusive, the reduction is applied on a sliding scale from 50% to 0%. For instance, if the rateable value (RV) is £6,000 the bill is reduced by a half. If the RV is £9,000, the bill is reduced by a quarter. The sliding scale reduction does not apply to RV above £12,000. However, the small business rate multiplier will be used in cases where the RV is below £18,000 (or £25,500 for London properties). From October 1st 2010 to March 31st 2013 the business rates holiday applies and the level of relief is temporarily doubled. Businesses that are eligible will get 100% relief for properties with RV up to £6,000, instead of the usual 50% discount. The tapering relief for properties with RV between £6,001 and £11,999 inclusive will be from 100% to 0% for the duration of the period. The business rates holiday is currently scheduled to last for the 2012 - 2013 billing year, until March 31st 2013. The relief was doubled originally until September 2011, was extended in March 2011, and was further extended in the autumn statement of 2011 and will now continue until march 31st 2013.   The business rates holiday is due to the economic state of the country. Since the outlook for the economy continues to remain bleak it seems logical that the holiday should be extended at least until there is definite evidence of recovery. The latest official statistics show that the recession has deepened in the UK after a 0.7% fall in GDP between April and June 2012. However, the government has not so far announced any further plans to extend the more generous small business relief scheme. Eligibility for small business rate relief may also depend on the number of properties involved and on which the business is liable for the payment of non domestic rates, either wholly or jointly. Where a person has more than one business property the discounted form of small business rate relief will be available only if the rateable value (RV) of each of the other properties is less than £2,600, in which case the rateable values of all the properties are added together and the small business relief is applied to the person’s main property based on the total RV. Those occupying properties with an RV under £18,000 (in London the upper limit is £25,500) and that are not getting a different mandatory relief will be entitled to have their rates bills calculated using the small business multiplier and this applies irrespective of the number of properties occupied by them. To summarize small business rate relief: for properties with 2010 RV of £6,000 or less the small business rate multiplier is used and the bill is reduced by 50 percent.  For business with RV between £6,001 and £11,999 inclusive the the small business rate multiplier is used and the bill is reduced on a sliding scale from 50% to 0%. Properties with RV of £6,001 are eligible for a reduction of 50% and for those with a RV of £11,999 the reduction is 0%.  With RV from £12,000 to £17,999 (in London the upper limit is  £25,499) the small business rate multiplier applies. The Small business rate relief scheme is administered by local councils and varies between England and Wales. (See above for situations where a person has more than one business property.) Between October 1st 2010 and 31st march 2013 there is a business rates holiday in which those eligible for small business rate relief receive discounts of 100% on properties with RV up to £6,000 , instead of 50% discount. For those with RV between £6,000 and £12,000 there is a tapering relief going from 100% to 0% during the business rates holiday period. The small business rate relief scheme (SBRR) was introduced by the Local Government Act 2003 and in England it came into operation with effect from April 1 2005. The temporary increase in SBRR (the business rates holiday) was announced in the Budget of March 2010 and has been extended twice. At present it is due to remain in force until  March 31st 2013. See also small business rate relief automation. Scotland and Wales each have their own separate small business rate relief schemes.

 

 

 

 

 

 

 

 

 

 

 


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