WFDC logo

Small Business Rate Relief

View General Explanatory Notes for 2017/2018

If you run a small business, further help may be available to pay your bills, with Small Business Rate Relief (SBRR).  This relief supports small businesses who generally occupy only one property.  The relief is available at 50 per cent for eligible properties up to £6,000 rateable value and relief decreases at the rate of around 2 per cent per £120 of rateable value up to 0 per cent at £12,000.

This relief is only available to ratepayers who apply to their local authority and in order to qualify for the relief you need to meet the following two criteria:

  1. Generally you can occupy only one property and it must have a rateable value under the threshold for the relief which is £18,000 (or £25,500 in Greater London); but
  2. If you occupy any additional properties, each of the additional properties must have a rateable value of no more than £2,600, and the total rateable value of all of the properties must be less than £18,000 (£25,500 in Greater London).

The rateable value of the property mentioned in (a), or the aggregate rateable value of all properties mentioned in (b), must be under £18,000 outside London or £25,500 within London, including on 1st April each year.

Ratepayers who satisfy these conditions will have the bill for their single or main property calculated using the lower small business non-domestic rating multiplier rather than the ordinary non-domestic rating multiplier that is used to calculate the liability of other businesses.

In addition, if the single or main property is shown on the rating list with a rateable value of up to £12,000, the ratepayer will receive a percentage reduction in their rates bill for this property up to a maximum of 50% for a property with a rateable value of not more than £6,000.

The Government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that will be allowed to keep that relief for a period of 12 months.

If an application for relief is granted, provided the ratepayer’s circumstances do not change, the application will not need to be renewed until the next revaluation of non-domestic premises, which happens every five years. Certain changes in circumstances will need to be notified to the local authority by the ratepayer (other changes will be picked up by the local authority). The changes which must be notified are-

(a) the ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief; and

(b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.

Notification of these changes must be given to the local authority within 4 weeks of the day after the day the change happened. If this happens, there will be no interruption to the ratepayer’s entitlement to the relief. However, failure to notify the authority within this timeframe will mean that the ratepayer ceases to be entitled to the relief with effect from the day that the change happened. If they are still eligible, the ratepayer will be entitled to the relief again with effect from the day that they notify the local authority. A notification that the ratepayer has taken up occupation of an additional property must be by way of a fresh application for relief; notice of an increase in rateable value must be given in writing.

Please note, applications for the 2010 Ratings List need to be made before the 30th September 2017.

Apply for Small Business Rate Relief for the first time

If you have any further queries regarding any of the above reliefs, or are unsure if you qualify, please call: 01562 732928

Wyre Forest District Council