Business rates relief

The Government introduced a temporary increase in the level of small business rate relief, so that eligible small businesses occupying properties with rateable values up to £6,000 would pay no business rates for one year from October 2010.

Following subsequent budgets, this enhanced rates relief was extended to 31st March 2013 with the temporary doubling of the small business rates relief  further extended until 31st March 2017 –  the eve of the new ratings list – meaning that those businesses that occupy premises with a rateable value under £6,000 continue to pay nil rates (as long as they qualify as a small business).

Budget 2016 – Good news for small businesses

  • From April 2017, small businesses that occupy their sole business property, with a rateable value of £12,000 or less, will pay no business rates.
  • Currently, this 100% relief is available if you’re a business that occupies a commercial property (e.g. a shop or office) with a value of £6,000 or less.
  • This means that an estimated 600,000 businesses will pay no rates from April 2017.
  • There will also be a tapered rate of relief on properties worth up to £15,000.
  • In addition, the current threshold for payment of the higher uniform business rate is to be raised from £18,000 to £51,000.

Small business rates relief taper

Small businesses benefiting from rate relief taper, where rateable values are from £6,000 to £12,000, can receive significant reductions, i.e. the 100% relief reduces on a pro rata basis on rateable values from £6,000 to £12,000.

As of April 2017, following the budget news above, this bracket will be 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 business multiplier

The Government has also made it easier for eligible ratepayers with rateable values below £18,000 (25,500 in London) 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 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 the percentage your business rates bill can be increased (or decreased) each year following revaluation. The transitional relief will apply to the business rates calculation each year until it reaches what your full business rates bill would have been in 2010.

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