Small business rate relief

In the budget 2016, the government confirmed that the doubling of the small business rate relief (SBRR) from 50% to 100% will be made permanent from 1 April 2017. The £6,000 and £12,000 thresholds will increase to £12,000 and £15,000 respectively. Therefore, properties with rateable values of £12,000 or below that meet the eligibility criteria will receive 100% relief and those businesses with rateable values between £12,001 and £14,999 will receive tapered relief. The taper will operate as at present – with 100% relief for eligible hereditaments with an RV of £12,000 or below, decreasing to 0% relief for hereditaments with an RV of £15,000 or above.

The threshold for the standard business rates multiplier will also increase from a rateable value of £18,000 (£25,500 in London) to £51,000.

Guidance for applicants

If the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bills.

Generally, this percentage reduction (relief) is only available to ratepayers who occupy either- 

  • (a) one property, or 
  • (b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899. 

The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London on each day for which relief is being sought.

If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.

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 they will be allowed to keep that relief for a period of 12 months.

An application for small business rate relief is required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact Amber Valley business rates section.

Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.

Certain changes in circumstances will need to be notified to Amber Valley business rates sections by a ratepayer who is in receipt of relief (other changes will be picked up by Amber Valley business rates section).

The changes which should be notified are: 

  • (a) the ratepayer taking up occupation of an additional property, 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.

If your circumstances change you must inform the council except where it is for a rateable value amendment.

Note - ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

Quick guide to see your small business rate relief

Please note: This relief is for occupied businesses only

Need further help or information?

Contact the team directly on 01773 841444 or email nndr@ambervalley.gov.uk

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