Small business rate relief

The Government acknowledged that more assistance should be given to small, single property businesses. They then introduced the Small Business Rate Relief Scheme (SBRR). The scheme was introduced on 1 April 2005 and is available to businesses meeting the qualifying criteria.

Who qualifies?

This scheme primarily aims to assist business owners in England who occupy a single non-residential property with a Rateable Value below £15,000. 

However, if you have a main property and additional smaller properties, you may still be eligible for a discount on the rates for your main property. To qualify, the combined Rateable Value of all your properties must not exceed £19,999, and only one property can have a Rateable Value greater than £2,899.

Ratepayers can only claim relief in respect of one property. For the purposes of the scheme, “one property” refers to a single hereditament shown in the Local Rating List, it may not be the same as a single building.

Applying for Small Business Rate Relief (SBRR)

Please note that SBRR is not an automatic entitlement. Ratepayers must meet the criteria on every chargeable day they claim relief.

The application must be signed by the ratepayer or a person authorised to sign on behalf of the ratepayer. This means, where the ratepayer is:

• a sole trader - the proprietor of the business
• a partnership - a partner of that partnership
• a trust - a trustee of that trust
• a limited company or other body corporate - a director of that body

When applying for the relief, you need to specify the property for which you are claiming. You should also provide a list of any other non-residential properties in England that you occupy.

If you are part of a partnership and any of the partners occupy other non-residential properties, whether individually or as part of the same or a different partnership, you must declare all those properties.

To be eligible for the Small Business Rate Relief (SBRR), it is a requirement that you inform the Council of any changes in your circumstances that might affect your eligibility. You must do this within four weeks from the day after the change occurred.

These changes are:

If the Rateable Value of a property you occupy increases and it is not within the jurisdiction of the authority granting Small Business Rate Relief (SBRR), you need to notify them in writing.

If you start occupying a property that was not mentioned in your initial relief application, you must submit a new application for relief to inform the authority.

Providing false information when applying for Small Business Rate Relief is a criminal offense.

How much relief will I get?

Starting from April 1, 2017, the Small Business Rate Relief (SBRR) will be permanently doubled from 50% to 100%. The previous thresholds of £6,000 and £12,000 will be raised to £12,000 and £15,000 respectively.

This means that properties with a Rateable Value of £12,000 or less, which meet the eligibility criteria, will receive 100% relief. Businesses with Rateable Values between £12,001 and £14,999 will receive tapered relief. It will gradually decrease from 100% to 0% for properties with a Rateable Value of £15,000 or more.

Furthermore, the threshold for the standard business rates multiplier will increase from a Rateable Value of £18,000 to £51,000.

Ratepayers who occupy more than one property

The scheme was originally intended for ratepayers with a single property in England. However, if a ratepayer occupies an additional property from April 1, 2014, they can still receive relief on the first property for 12 months after occupying the second one.

Relief can continue to be claimed providing that Rateable Value of the additional property falls below £2,900, and the aggregate Rateable Value of all occupied properties is less than £20,000.