Rate relief for small businesses

This scheme is funded by a supplement to the business rates bill of those businesses not eligible for the relief. Businesses that have a rateable value of between £12,000 and £17,999 may be eligible to pay their business rates without this supplement included. This is known as the ‘buffer zone‘ and charges will be based on a reduced multiplier.

Is your business eligible?

To qualify for relief and / or the reduced multiplier, your business must meet the following criteria:

• The ratepayer must occupy one business property in England, or;
• The ratepayer must occupy one main property in England and other additional properties (providing those properties have rateable values of less than £2,600). The total rateable value of all properties occupied will be used to assess Small Business Rate Relief (not more than £17,999 rateable value). Any relief will be awarded against the main property only, and any additional properties will not qualify for Small Business Rate Relief.

Charity Relief

Any entitlement to a Charity Relief will override entitlement to Small Business Rate Relief. You cannot qualify for more than one type of relief. Find out about Charitable Rate Relief.

Relief is calculated on a daily basis, and if you no longer meet the criteria for Small Business Rate Relief it will end on the day your circumstances change.

Applying for Small Business Rate Relief

You can apply for Small Business Rate Relief for a full valuation period. The current valuation period commenced on 1st April 2010 and will run for a period of five years. Applications will continue to be accepted up to six months after the end of the last financial year of the valaution period, 30 September 2015. Download the application form from 'printable forms' above, and follow the guidance for filling it out. If a rateable value is reduced to a figure below the upper threshold and back dated prior to 1 April 2010 applications can be accepted for up to six months after the date you were notified of the date of the alteration. This is subject to the conditions of the scheme.

Additional Relief - 1 October 2010 to 30 September 2012

The Government has announced that there will be a temporary increase in the level of Small Business Rate Relief. This means that eligible ratepayers will receive 100 per cent relief on properties with rateable values up to £6,000 with a tapered relief of between 100 percent and 0 per cent for properties with rateable value between £6,001 and £12,000.

The new levels of relief will be available for a period from 1 October 2010 to 30 September 2012. Meanwhile, you should ensure that you continue to pay your existing business rate bill until relief has been awarded. There are no other adjustments to the scheme. For example, the eligibility criteria remain the same.

Not eligible?

If you don't qualify for Small Business Rate Relief, there are other rate reductions or exemptions that may apply to your business.