Small Business Rate Relief
Temporary Increase in the level of Small Business Rate Relief
This is important news that could benefit your business!
In 2010 the Government announced temporary changes to the Small Business Rate Relief (SBRR) scheme.
With effect from 1st October 2010 the level of SBRR was increased for a period of one year (1st October 2010 to 30th September 2011). During this period, eligible ratepayers will pay no rates on properties with rateable values up to £6,000, with a tapered relief between 100% and 0% for properties with rateable values between £6,001 and £12,000.
There are no other adjustments to the scheme. i.e. the eligibility criteria for Small Business Rate Relief remains the same. Details of the criteria are set out in the fact sheet shown below.
The Government has confirmed that it will meet the costs of the increased levels of relief. There will be no changes to the multiplier so those businesses that do not fall within the eligibility criteria of the scheme will see no change in their bills.
The Government is making this change to the SBRR scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing again.
What happens next?
You do not need to take any action.
The Local Authority will adjust the business rates payable by all businesses that meet the criteria for SBRR and that occupy properties within the rateable value thresholds set out in the revised scheme.
For those eligible to the full reduction, the instalment plan on the 2011/12 annual bill will show £0.00 to pay from April to September, the instalments will then return to the standard SBRR levels from October 2011 to January 2012. If you have a ratebable value over £6,000, the instalment plan will show lower amounts for the first 6 months before rising back to standard levels from October 2011.
If any amendments need to be made, the Local Authority will issue revised bills and contact affected ratepayers about this at the appropriate time.
What do you need to do?
You do not need to take any action. Simply pay the new instalments on or before the due dates shown on your bill. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment.
If you think that you meet the criteria, but have not submitted a claim for SBRR, you should complete the appropriate application form shown at the bottom of this page or contact the Revenues Section on 01530 454499 to see if you are entitled to support.
A fact sheet is available to download setting out the key features of the revised arrangements.
Small Business Rate Relief - Fact Sheet (Word Document, 0.1 Mb)
Small Business Rate Relief - General criteria
The temporary changes detailed above, and further explained on the fact sheet, only apply for the period 1st October 2010 to 30th September 2011. Please see below for details of the standard SBRR scheme and the general criteria which applies.
The Small Business Rate Relief (SBRR) scheme was introduced in 2005. The scheme is designed to provide financial assistance to business ratepayers that occupy just one property in England, where the rateable value of their property is below £18,000. If you own one or more additional business properties and each property has a rateable value below £2,600 you may still be entitled to a reduction, but the aggregate must not exceed £18,000.
The amount of relief awarded is dependent upon the property's rateable value. It could mean a significant reduction, up to 50%, if the rateable value is below £6,000. The amount of relief is reduced on a sliding scale for properties with a rateable value between £6,000 and £11,999.
Where a property has a rateable value between £12,000 and £18,000, the rates are calculated using the Small Business Rate Multiplier, which reduces the amount of rates payable.
For further information please see our Small Business Rate Relief frequently asked questions below.
How to apply for Small Business Rate Relief
If you feel that you may be entitled to SBRR it is very straight forward to apply. It is also free to apply. You do not need to pay a rating agent or a third party to apply on your behalf. If you meet the criteria, you are automatically entitled to receive the reduction in your rates bill. All you need to do is download an application form. Complete and sign the form and then return it to the Council Offices, the address is shown below. We will do the rest.
To apply for relief for current rating period, i.e. 1st April 2010 to the 31st March 2015, you need to download the form shown below. Please complete and return the form to the Council Offices and we will consider your application. Once a decision has been made, if your application has been successful you will be sent a revised rates bill(s) or, if unsuccessful, a letter will be issued explaining why your application has been refused.
SBRR Application Form 2010 - 2015 (PDF Document, 0.1 Mb)
The Revenues Team,
North West Leicestershire District Council
Council Offices
Whitwick Road
Coalville
Leicestershire
LE67 3FJ.
If you require any assistance with the form or have any questions regarding the scheme please contact the Revenues Team on 01530 454499 or email us at revenues@nwleicestershire.gov.uk . The team are happy to assist you or give general advice on any Business Rates matter.
Frequently Asked Questions (5)
No. Small Business Rate relief only applies to occupied properties.
To help reduce the financial burden on owners of empty business properties, the Government have introduced new legislation which exempts people from paying business rates on empty property, if the rateable value of their property is below £15,000. This applies to the 2009/10 financial year only. In previous years this exemption only applied where the rateable value of an empty property was below £2,200. The legislation has recently been reviewed and the Government have decided that the new threshold for 2010/11 will be £18,000. Again, this extension will be initially for one year only and will be reviewed again at the end of the 2010/11 financial year.
Its easy! Simply download the form below, complete it, remember to sign it and then post it back to us. Our address is shown below.
Revenues Team
North West Leicestershire District Council
Council Offices
Whitwick Road
Coalville
Leicestershire
LE67 3FJ
Application for small business rate relief 07 - 2010 (PDF Document, 0.1 Mb)
It depends on the Rateable Value (RV) of your property:
- If your RV is less than £5,000 then you will receive a 50% reduction in your annual business rates. With effect from 1st April 2010 the RV will change to £6,000.
- If your RV is between £5,000 and £9,999 you will receive a reduction of between 1% and 49% of your annual business rates. (The relief is reduced by 1% for every £100 of rateable value above £5,000). With effect from 1st April 2010, if your RV is between £6,000 and £11,999 you will receive a reduction of between 1% and 49% of your annual business rates. (The relief will be reduced by 1% for every £120 of rateable value).
- If your RV is between £10,000 and 14,999, known as the 'Buffer Zone', you won't get any relief but you can claim exemption from the 'small business rate supplement' mentioned earlier. To qualify for this you need to meet the same conditions described above under 'Will I qualify for Relief?'. From the 1st April 2010, these thresholds change. With effect from the 1st April 2010, if your RV is between £12,000 and £17,999 you can claim exemption from the 'small business rate supplement'.
Yes, if you meet one of the criteria below:
- you occupy only one commercial property in England from which you carry out your business and its rateable value in the 2005 rating list is less than £15,000 (this threshold will be increased to £18,000 for the 2010 rating list) ; or;
- you occupy more than one business property but the total rateable value for them all is less than £15,000 (£18,000 from 1st April 2010) and each 'additional' property has a rateable value less than £2,200 (£2,600 from 1st April 2010). This might apply if you have one main property plus some car parking spaces, or a separate store or workshop.
Last updated: Mon 28th February, 2011 @ 11:06
