Commercial surveying services from the Beattie Partnership

Small Business Rates Relief

Businesses will be eligible for small business rate relief (SBRR) if they generally occupy only one property and their rateable value is below a certain level. The system varies between England, Wales and Scotland. SBRR is administered by each local authority.

SBRR eligibility in England applies if a rateable value is below £20,000 (£28,000 in London) and is structured as follows.

Currently, if an occupier has a 2017 rateable value of £12,000 or below, and the occupier qualifies, then the rates bill will be zero.  For properties with a rateable value of £12,001 to £15,000, the rate of relief will go down gradually from 100% to 0%.

If a ratepayer takes a second property

Should you get a second property, the ratepayer will keep getting any existing relief on their main property for 12 months.  They can still get small business rate relief on their main property after this if both the following apply:

  • none of your other properties have a rateable value above £2,899
  • the total rateable value of all the properties is less than £20,000 (£28,000 in London)

Multiplier for small business rate relief

If a property in England has a rateable value below £51,000, the bill will be calculated using the small business multiplier, which is lower than the standard one. This is the case even if they do not receive small business rate relief.

In some situations owners/occupiers could consider splitting their rating assessment to benefit themselves and/or their tenants from SBRR if the occupations are capable of separate occupation.