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Small Business Rate Relief - England

In England, small businesses are entitled to Small Business Rate Relief (SBRR) if the rateable value of their premises is less than £18,000 (£25,500 in London). Read on to find out more...

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In England, small businesses are entitled to Small Business Rate Relief (SBRR) if the rateable value of their premises is less than £18,000 (£25,500 in London). Special rules apply for businesses that own more than one property (but with a total rateable value below this limit). For more information on schemes in Scotland and Wales, click here.

Precise details can be obtained from your local authority.

Who qualifies for Small Business Rate Relief in England?

Eligible businesses with a rateable value of below £5,000 will get 50% rate relief on their liability.

This relief will decrease on a sliding scale by an estimated 1% for every £100 of rateable value over £5,000, up to £10,000. If your single property's rateable value is above £10,000 but below £15,000, your rates bill will be worked out using the same small business non-domestic rating multiplier of 48p in the pound.

If you occupy just one property in England with a rateable value of less than £10,000, you will qualify for SBRR. Additional properties don't count as long as none has an individual rateable value of more than £2,600 or as long as the combined rateable value of all properties under £18,000 (£25,500 in London).

Although the threshold for the combined rateable value depends on the location of the main property, this property is the only one that will have the relief applied to it. The other properties' charges are calculated using the standard multiplier (this is 49.3p in the pound).

Relief is only available to ratepayers with either:

  • One property
  • One main property and other additional properties providing those additional properties have rateable values less than £2,600
  • The total value all the properties remains under the appropriate threshold (£18,000 outside London or £25,500 within London)

How to apply

If you are eligible, you only need to apply for relief once in the life of a "Rating List". You can find out if you're eligible for Small Business Rate Relief here.

The local authority does not have to write and tell you that you're eligible, it's your responsibility to work this out and apply for the relief yourself. If you are unsure of your rateable value, you should be able to find this on your bill.

If you cannot find this information on your bill you should contact your local authority and ask to speak to the business rates department.

Don't be tempted to change your details to skew your entitlement. Falsely applying for relief is a criminal offence.

Other reliefs

Some local councils give businesses retail relief, up to £1,000 off business rates, on retail properties with a rateable value of £50,000 or less.

Charities and community amateur sports clubs can get their business rates bills reduced by 80%. In some areas, this could be reduced even further. Other non-profit organisations can apply for up to 100% discretionary relief.

Certain rural businesses, such as village shops and petrol stations, may be able to claim rate relief. You may be able to get hardship relief if you are finding it difficult to pay. This is normally only available to businesses that are important to the local community.

Contact your local council directly to find out if you're available for any additional reliefs.

The Forum can help you review your own business rates, call us on 01565 626 001 to find out more.

Read more about business rates here

Last updated 16th June 2016.