Small business rate relief is a government scheme intended to assist ratepayers who occupy a small property that is assessed for non-domestic rates (commonly known as business rates).
You do not need to be running a business to qualify - for example, if you are renting a workshop to use for a hobby, or if have a beach hut, you can still qualify.
The scheme works in two ways:
- If the rateable value is below £51,000 you will be charged at a lower multiplier. This is applied automatically.
- If the rateable value is below £15,000 additional relief will be award (up to 100%). This is by application.
Registered charities and Community Amateur Sports Clubs (CASCS) are not eligible for small business rate relief - alternative relief schemes are available.
The scheme is intended for ratepayers who occupy one non-domestic property only. The property must be occupied and used in some capacity – empty properties are not eligible.
If more than one property is occupied, small business rate relief can still be awarded to the main property (the property with the highest rateable value) where:
- The rateable values of all secondary occupied properties must be below £2,900.
And
- The combined rateable value of all occupied properties (main and secondary) must be below £20,000.
Empty properties are not eligible for small business rate relief and are therefore not relevant to these criteria.
If both criteria are met, you will qualify for small business rate relief at the main property. You cannot get small business rate relief on the secondary properties as well.
If you receive small business rate relief and then take on and occupy an additional property, you may lose your eligibility for small business rate relief.
If the new property has a rateable value below £2,900, and both rateable values combined come to below £20,000, you will continue to qualify (see "What if I occupy more than one property?" above).
However, if the rateable value of the new property is £2,900 or over, you will only continue to receive small business rate relief at your original premises for an additional 12 months (commencing the date you occupy the additional premises). Once 12 months has passed, the relief will end, and a full charge bill will be payable.
You cannot get small business rate relief on the additional property as well.
How much relief is awarded?
The additional relief is based on the rateable value of your property. Since 1 April 2017 this has been as follows:
Relief awarded for rateable values:
Rateable Value: Up to £12,000 - Relief awarded: 100%
Rateable Value: Between £12,000 and £15,000 - Relief awarded: The amount of relief is reduced on a sliding scale from 100% to 0%.
For rateable values over £12,000 the amount of relief will decrease by 1% for every £30 of rateable value of £12,000 to £15,000.
