Small Business Rates Relief (SBRR) is designed to help businesses that occupy only one small property, or two or more small premises within certain Rateable Value (RV) ranges. By "occupy", the scheme means: to be using the premises and be liable for the Business Rates upon it.
The SBRR scheme allows help in two ways:
- Firstly, qualifying properties pay at a reduced multiplier. Ratepayers that do not qualify for the relief pay a higher multiplier which funds the scheme;
- Secondly, certain qualifying properties will also receive a percentage reduction in their bill.
The qualification criteria for Small Business Rates Relief therefore are:
For a reduced multiplier:
- You will qualify if you occupy a property with an RV of under £18,000 and this will automatically be shown on your bill (this automatic qualification only applies from 1 April 2012 onwards).
For a percentage reduction in your bill (or a reduced multiplier prior to 1 April 2012), the following criteria apply for qualification:
- Occupy only one business property in England with a Rateable Value of under £12,000; or
- If you occupy more than one property in England, you might still qualify, but only if the total of all the Rateable Values is less than £18,000, and no more than one property has a Rateable Value greater than £2,599.
In either of the above cases, you must not be entitled to any Mandatory Relief (see Important Notes below)
The amount of the relief for qualifying businesses will be as follows:
- The reduced multiplier is 45p in the pound. The higher multiplier is 45.8p in the pound.
The percentage reduction is calculated as follows:
- If your RV is under £6,000, the reduction is 50%;
- If your RV is £6,000 to £12,000, the reduction is on a sliding scale from 50% down to 0%. (Roughly each £120 of additional RV above £6,000 will result in 1% less relief).
Important Notes (please read)
The Government has temporarily increased (doubled) the percentage reduction that you will receive. If your rateable value is under £6,000, you will receive 100% relief; and for those with a rateable value of between £6,000 and £12,000, the sliding scalle is from 100% down to 0%. This temporary increase is due to end on 31 March 2013, when the relief will return to normal.
You must notify the Council of any changes to your circumstances, such as occupying another property (anywhere in England), or an increase to the Rateable Value of any other property that you occupy.
Mandatory reliefs are the Rural Rate Relief, Charity Relief, or Community Amateur Sports Club schemes. If you are eligible for any of those, you must apply for relief under those schemes and not for Small Business Rates Relief. Current legislation does not allow you a choice regarding which relief you can apply for.
Small Business Rates Relief can be backdated, but only to 1 April 2010 at the earliest (unless the property has only just been assessed for Business Rates, and the assessment has been backdated).
