Business rates relief

Following the 2017 revaluation, the threshold for Small Business Rates relief doubled to £12,000. This means that all businesses that are classified as small businesses, that occupy commercial property with a rateable value of £12,000 or less, are eligible to pay no business rates. Furthermore, the introduction of a sliding scale of business rates relief for the £12,000-15,000 bracket – albeit a narrow scale – is also offering substantial savings for those larger properties.

Good news for small businesses

  • As of April 2017, small businesses that occupy their sole business property, with a rateable value of £12,000 or less, pay no business rates
  • An estimated 600,000 UK businesses are eligible to pay no business rates
  • Tapered rate of relief on properties with a rateable value up to £15,000
  • In addition, the current threshold for payment of the higher uniform business rate has been raised from £18,000 to £51,000

Small business rates relief taper

As of April 2017, this bracket is from £12,000 to £15,000, making it more vital than ever that companies in this bracket seek advice on their rateable value – with possible exponential savings.

Small, medium and large businesses

We have a system of two multipliers, small business multiplier and standard multiplier, with transitional relief applying differently for each. This is because the revaluation will have had different impacts on these two groups – with small businesses seeing either substantial decreases or small increases in their rateable value and larger businesses being hit with more severe rises.

  • Rateable value less than £51,000 qualifies for the small business multiplier
  • Rateable value greater than £51,000 qualifies for the standard multiplier

Small business multiplier

The Government has made it easier for eligible ratepayers with rateable values below £51,000 to have their bills calculated using the small business multiplier. If you are not getting the benefit of the small business multiplier automatically on your current business rates bill, then you should contact your local council.

How does business rates transitional relief affect my business rates?

Business rates transitional relief, which only applies in England, is designed to reduce the impact of any significant changes in the rateable value of commercial property. Local councils will automatically include transitional relief when they calculate business rates bills.

Transitional relief limits, in the short term, the percentage your business rates bill can be increased (or decreased) following the revaluation. The transitional relief will have the most effect in the first year after the revaluation, with more substantial adjustments in years 2 and 3.

Backdated to 2007, Casino operator Les Croupiers Ltd, saved £28,000 following our appeal on their Cardiff-based premises.

Leisure premises, Cardiff

Want to know more?

Contact Martin Cook

0121 212 5993