If a ratepayer's sole or main property has a rateable value which does not exceed a set threshold, the ratepayer may receive a percentage reduction in their rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property. For example eligible properties with a rateable value below a specified lower threshold will receive 100% relief while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief.
The relevant thresholds for relief are set by the Government by order and can be obtained from Calderdale Council or visit: Business rates (GOV.UK).
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either:
- one property;
- or one main property and other additional properties. (Providing each has a rateable value which does not exceed the limit set by order.)
The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period.
Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be obtained from Calderdale Council or visit: Business rates (GOV.UK).
Certain changes in circumstances will need to be notified to the local authority by the ratepayer who is in receipt of relief (other changes will be picked up by the local authority).
Changes we need to know about are:
- If the property is vacant.
- If the ratepayer takes up occupation of an additional property.
- 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.
Changes to small business rate relief
From 1st April 2017 onwards
At Budget 2016, the Government confirmed that the doubling of the Small Business Rate Relief for qualifying properties would become permanent from 1st April 2017. Also, the threshold for qualifying for 100% relief would be increased from £6,000 RV to £12,000 RV. At the same time, the threshold for tapered relief was extended from £12,000 to £15,000 RV.
Therefore, qualifying business properties with RVs up to £12,000 will qualify for 100% relief and qualifying businesses with RVs between £12,000 and less than £15,000 will receive tapered relief. The taper will operate by reducing relief by approximately 1% for each additional £30 of RV above £12,000 RV. So, for example, 50% relief would apply for a qualifying property with an RV of £13,500 and 0% relief for a property with an RV of £15,000 or above.
Relief can be claimed in respect of the property with the highest rateable value, If:
- you occupy a main property with a rateable value of less than £15,000;
- but also occupy other properties each with rateable values under £2,900;
- and the total rateable value of all the business properties does not exceed £19,999.
The threshold for the standard business rates multiplier will also increase from an RV of £18,000 to £51,000
From 1st April 2012 to 31st March 2017
To be awarded relief with effect from 1st April 2012 does not generally require an application form to be completed. However, any request for backdating will be limited by the effects of the Limitation Act 1980 to 6 years provided that the ratepayer meets the qualifying conditions for the whole of the period.
Any qualifying business occupying business property within England with an RV less than £12,000 will be entitled to relief.
The rate of relief will decrease from 100% (for qualifying properties with an RV of £6,000 or less) by approximately 1% for each additional £60 RV over the £6,000 RV threshold. Therefore a qualifying property with an RV of £9,000 would be entitled to 50% relief whereas a property with an RV of £12,000 would be entitled to 0%.
Properties with RVs between £12,001 and £17,999 will automatically have their rates calculated using the lower small business non-domestic multiplier but will not qualify for any percentage relief.
Additional properties
On 1st April 2014, the government introduced additional support to small businesses that are looking to expand and take on additional business premises. For businesses that take on an additional property which would normally result in the loss of small business rate relief on the original property, a ratepayer is allowed to keep that relief for a period of 12 months. Note: The rates paid on the other property will not receive the relief. Entitlement to relief will stop 12 months after the date of occupation of the additional property.
For more on small business rate relief, visit: Small business rate relief (GOV.UK).
If you believe you are entitled to this relief, please complete this form:
Important note: Before completing the form, please read our Business rates - privacy notice. This tells you what we do with your personal information.