Small Business Rate Relief
If a property has a rateable value of less than £18,000 from 1 April 2010 you may qualify for Small Business Rate Relief (SBRR).
To qualify for SBRR the ratepayer must:
- Occupy only one property, or
- Occupy one main property and other additional properties providing those additional properties each have rateable values less than £2,600.
Please note: You are only eligible to claim Small Business Rate Relief on ONE property regardless of how many properties you occupy.
The rateable value of a single property or the aggregate total value of all the properties must be less than £18,000 (or £25,500 within Greater London).
Ratepayers can only claim relief in respect of one property. However, you may now continue to receive SBRR for a period of 12 months further to occupying another property.
How much relief will I get?
The Scheme prior to 1 October 2010
Eligible properties with a rateable value of less than £6,000 will receive 50% relief. This relief will decrease on a sliding scale of 1% for every £120 in rateable value over £6,000 and up to £12,000, at which point no relief is applicable.
In addition, eligible properties will have their rate bill calculated on the small business non-domestic rating multiplier.
Changes from October 2010
The Government has temporarily changed the scheme so that businesses who qualify and whose rateable value is less than £6,000 will get 100% relief. This will decrease on a sliding scale if your rateable value is between £6,000 to £12,000. If the rateable value is between £12,001 and £17,999 the bill will be calculated using a lower multiplier than non-qualifying businesses.
Businesses must apply in writing and there are time limits on how long you have to apply so please don't delay - apply as soon as you can. You can get further information on Small Business Rate Relief and do a trial calculation by visiting the My Business Rates website.
Changes from April 2017
From 1 April 2017 Small Business Rate Relief (SBRR) will permanently double from 50% to 100%. The £6,000 and £12,000 thresholds will increase to £12,000 and £15,000 respectively.
Therefore, those with rateable values below £12,000 that meet the eligibility criteria will receive 100% relief. This relief will decrease on a sliding scale if your rateable value is between £12,000 and £15,000.
The threshold for the standard business rates multiplier will also increase from £18,000 (£25,500 in London) to a rateable value of £51,000. This means that if the rateable value is between £15,001 and £51,000 the bill will be calculated using the small business non domestic rating multiplier if appropriate.
Please note: If your business qualifies for Mandatory Charity Relief or Mandatory Rural Rate Relief you cannot get SBRR as well. Don’t forget: if you move into, out of, or within Malvern you need to let us know as this will affect your bill.
Please contact us with the details.