Small business rate relief

We help small businesses by reducing their business rates if their rateable value is under a certain amount.

Ratepayers who are not entitled to another mandatory relief or are liable for unoccupied property rates and occupy a property with a rateable value which does not exceed £17,999 will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier. 

In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £12,000, the ratepayer will receive a percentage reduction in their rates bill. The relief is set at 100% for a property with a rateable value of not more than £6,000 with a taper applying where the rateable value is between £6,001 and £12,000.  

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 £2,599. 

The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £17,999 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. 

However, the Government has introduced additional support to small businesses who occupy additional property which would normally have meant the loss of small business rate relief. Instead of losing the relief immediately the relief will continue for a period of 12 months. 

An application for Small Business Rate Relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact us. 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. 

It is important that certain changes in circumstances are notified to us by a ratepayer who is in receipt of this relief. These 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. 

Important changes to small business rate relief were announced by the Chancellor of the Exchequer in his March 2016 budget which are to take effect from April 2017. These are: -

  • the rateable value threshold of £6,000 below which a ratepayer may receive 100% small business rate relief will increase to £12,000.
  • the taper will apply where the rateable value is between £12,000 and £15,000

How do I apply?

Download an application form below.

pdf icon Application form [102kb]

If you would like to discuss how much relief you might qualify for, please contact us >>

You can also see further information on small business rate relief on GOV.UK >>