Small business rate relief

Small business rate relief from April 2017

Properties with a rateable value (RV) of less than £51,000 and which are:

  • not eligible for any other form of mandatory relief, and
  • are occupied

benefit from the small rating multiplier.

Additionally eligible properties where the RV is less than £15,000 you will qualify for further relief between 100% and 1% dependent on the actual RV of your property.

The taper allows 100% relief for eligible properties with an RV of £12,000 or below, decreasing to 0% relief for hereditaments with an RV of £15,000 or above

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

  1. one property, or
  2. one main property and other additional properties, providing those additional properties each have a RV which does not exceed £2,899.

The RV of the property mentioned in (a), or the total RV of all the properties mentioned in (b), must not exceed £19,999 each day for which relief is being sought.

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

Small business rate relief up to March 2017

Properties with a rateable value (RV) of less than £18,000 and which are:

  • not eligible for any other form of mandatory relief, and
  • are occupied

benefit from the small rating multiplier.

Additionally eligible properties where the RV is less than £12,000 you will qualify for further relief between 100% and 1% dependent on the actual RV of your property.

The taper allows 100% relief for eligible properties with an RV of £6,000 or below, decreasing to 0% relief for hereditaments with an RV of £12,000 or above

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

  1. one property, or
  2. one main property and other additional properties providing those additional properties each have a RV which does not exceed £2,599.

The RV of the property mentioned in (a), or the total RV of all the properties mentioned in (b), must not exceed £17,999 each day for which relief is being sought.

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

Applications

You do not have to apply for this relief separately for each financial year, or for each five year revaluation period. You only need to make one application for small business rate relief and you will continue to receive it until you have a change of circumstances, or there is a change in the eligibility criteria that means you will no longer qualify.

The ratepayer is legally required to notify us of certain changes of circumstance once the relief has been granted.

These are:

  1. Where the ratepayer takes up occupation of a property they did not occupy at the time of making their original application, in which case a fresh application is required.
  2. There is an increase in the rateable value of a property occupied by the ratepayer which is outside Selby district. The ratepayer must inform us in writing.

You must notify us within four weeks of any change of circumstances. The application must be signed by the ratepayer or an authorised person (e.g. a partner in a partnership, a trust of a trustee, or a director of a corporate body).

Warning:

It is a criminal offence for a ratepayer to give false information when making an application for small business rate relief.  Any suspected from in this area will be investigated by our counter fraud team.

  • If you fail to notify us of any changes you will lose the relief from the date of change until the date you notify us of the change, even if you would otherwise be entitled to the relief.
  • It is a criminal offence for a ratepayer to give false information when making an application for small business rate relief.

You can download an application form - pdf as well as some guidance notes - pdf for help with completing this form.

For the period 1 April 2010 to 31 March 2017, the deadline for applications to be received is 30 September 2017.

Please note, if you make an application within the above deadlines, relief can be backdated to the beginning of the period in question. For example, if an application is received on 30 September 2017 for the period 1 April 2010 to 31 March 2017, relief can be backdated to 1 April 2010.

There are two exceptions to these deadlines:

  1. The Valuation Office Agency has brought a property into the Local Rating List and has backdated the effective date of entry
  2. The Valuation Office Agency has reduced the rateable value in the Local Rating List to below the threshold of £12,000, which means the ratepayer may now be entitled to the relief.

In both of these cases applications have to be received within six months of the date the Valuation Office Agency amends the Local Rating List. For example if a property was brought into the list today but with an effective date of 1 April 2010, the ratepayer has six months from today to make all the relevant applications for relief - but only for those periods where there is either less than six months to the deadline as indicated above or where the deadline has already passed.

The earliest that an application can be received is six months prior to the revaluation in question. For the 2017 revaluation this is 1 October 2016.

The rateable value must be less than £12,000 on every day that the relief is sought. If the rateable value goes up or down, the relief will be adjusted accordingly.​

Interaction with other reliefs

  • If you are entitled to 80% mandatory relief as a community amateur sports club and small business rate relief, you will receive 80% mandatory relief only.
  • If you are entitled to 80% mandatory charitable relief and small business rate relief, you will receive 80% mandatory relief only.
  • If you are entitled to 50% mandatory rural rate relief and small business rate relief, you will receive 50% mandatory rural rate relief only.
  • If you are entitled to all of these reliefs you will receive 80% mandatory relief only.

More information

Further information can be obtained from:

GOV.UK - An introduction to business rates

Valuation Office - executive agency of the Inland Revenue (IR). Duties include compiling and maintaining the business rating and council tax valuation lists for England and Wales.