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Small Business Rate Relief

Small Business Rate Relief

Small Business Rate Relief from 1/4/17

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.

In addition, generally, 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 bill.

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 or £27,999 in 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.

Where a ratepayer meets the eligibility criteria and has not received the relief they should contact their local authority. 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 the local authority by a ratepayer who is in receipt of relief (other changes will be picked up by the local authority). 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.

Small Business Rate Relief prior to 1/4/17

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 outside London, will have their bill calculated using the small business Non-Domestic Rating multiplier. (for 2016/17 this is £0.484) rather than the standard multiplier (for 2016/17 this is £0.497).   

In addition, generally, if the sole or main property 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 for this property of up to a maximum of 50% for a property with a rateable value of not more than £6000.

NB: The government announced in the Autumn Statement in 2015, that the doubling of the usual level of relief - to a maximum of 100% - will continue for a further year until 31st March 2017.

Generally this percentage reduction is only available to ratepayers who occupy either:

  • a) One property
  • b) One main property and other additional properties providing those additional properties do not have a rateable value of over £2599.
The rateable value mentions in (a) or the aggregate rateable value of all the properties mentioned in (b), must not exceed £17,999 outside London, on each day for which relief is sought. 

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.

Applications for small business rate relief are not necessarily required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact their local authority. You may be asked to complete a form to confirm your eligibility and you must note that it is a criminal offence to claim this relief if you have no entitlement to this. If we subsequently become aware that relief should not have been granted, it will be withdrawn and criminal proceedings may be taken.

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 be automatically continue to receive relief in each new valuation period.

Certain changes in circumstances will need to be notified to the Local Authority by a ratepayer who is in receipt of relief. 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

Non Domestic Rates

Revenues and Benefits
PO Box 1257
Lincoln
Lincolnshire
LN5 5PQ

Tel: 01522 873342
Email: revenues@lincoln.gov.uk

Sleaford Office Opening Hours

09:00-17:00 Monday -Thursday
09:00-16:30 Friday

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