Small Business Rate Relief set to increase
10 August 2010
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As announced in both the Labour and coalition Government budgets, Small Business Rate Relief is set to increase from October 2010, which could mean big savings for small business.
In England, small businesses are entitled to Small Business Rate Relief (SBRR) if the rateable value of their premises is more than £2,600 but less than £18,000 or £25,500 in London. Special rules apply for businesses that own more than one property, but with a total rateable value below this limit. These figures were set in April 2010 and will be current for the next five years to 2015.
 
The former Chancellor Alistair Darling announced in his last Budget on 24 March 2010 that Small Business Rate Relief would be extended, so that businesses with a rateable value of less than £6,000 will pay no business rates from October 2010 for one year. This measure was upheld by the new coalition Government in their Emergency Budget on 22 June 2010.
 
This means that between 1 October 2010 and 30 September 2011, eligible ratepayers will receive Small Business Rate Relief at 100 per cent on properties up to £6,000 (rather than 50 per cent).
 
A tapering relief from 100 per cent to 0 per cent will also be in place for properties over £6,000 and up to £12,000 in rateable value for that period.
 
The Government have confirmed that there will be no other adjustments to the SBRR scheme and the eligibility criteria will remain the same.
 
Your local billing authority will contact you about how this may affect you, but you should continue to pay your rates as per the bill you have received until a new bill reflecting the change is issued.
 
You can find out more about eligibility here or contact your local authority if you need further advice.
 

Empty property relief

 
Empty property relief has been extended for 2010-11 so that all empty properties with a rateable value below £18,000 are exempted from business rates.
 

Wales, Scotland and Northern Ireland

 
The Small Business Rate Relief scheme as described above is only available in England. Similar business rate relief schemes operate in Wales, Scotland and Northern Ireland. You can find more information on the relevant Government websites below:


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