Small Business Rate Relief

The Government introduced Small Business Rate Relief with effect from 1 April 2005. The scheme was amended on 1 April 2010.

In summary, if you (as a person or a company) occupy a single business rates property in England with a rateable value of below £6,000, you may be entitled to a reduction of 50% in your business rates.

If you occupy a property with a rateable value of between £6,000 and £11,999 the relief is available on a sliding scale until zero at £12,000 (approximately reducing by 1% per £120 of rateable value).

To apply, simply print the Small Business Rates Relief Form, complete it and mail it to us.

Example

Rates payable = £7,000 x 40.7p = £2,849.00
Small Business Rate Relief = (7,000 - 6,000) ÷ 120 = 8%
Approximate relief will be 50% - 8.3% = 41.7%
Total rates payable will be £2,849.00 - £1,188.03 (40%) = £1,660.97

If your property has a rateable value of between £12,000 and £17,999 and that is the only business rates property you occupy, you can apply to pay at a reduced level, which is 0.7p in the £ less than the full charge in 2010/11 (for example Small Business Rate Relief multiplier for 2010-11 = 40.7p in the £, full multiplier = 41.4p in the £).

Important budget announcement

On the 24 March 2010, the Government announced that, subject to Parliamentary approval, it intended to introduce a temporary increase in the level of Small Business Rate Relief to eligible businesses for the period 1 October 2010 to 30 September 2011.

Important

Please note that if you use the statutory instalment scheme, the increased level of Small Business Rate Relief will be represented in your instalments between April and September 2011. For example, if you are normally in receipt of 50% relief, the increased level of relief to 100%, would mean that your instalments would be £0.00 from April to September. A revised instalment plan would commence from your October instalment – these details will be shown on your business rates bill.