Small Business Rate Relief

small business rate relief

Small Business Rate Relief (SBRR)

  • You can get 100% business rate relief if the rateable value of the business premises is less than £12,000

  • If the rateable value is between £12,001 to £15,000, you can still get rate relief, but it varies. For e.g., if the rateable value is £14,000 you could get 33% discount. If the rateable value is £13,500, you could get 50% discount.

 

What are Business Rates?

Business rates is a tax paid by the occupiers of business and commercial properties in the UK. Most of the commercial properties in the UK are rateable or taxable.

Business rates is like “council tax” paid by the residents. For e.g., if you occupy a house you pay “council tax” and if you occupy a commercial property, you pay “business rates” to the local council.

What is a Rateable Value?

Rateable value is a value assigned to commercial properties by the Valuation Office Agency (VOA). It’s based on a property’s annual market rent, size and permitted use. Every commercial property in the UK is assigned a rateable value. Rateable Value is reviewed by VOA every 5 years. Last review was in 2015 (came into effect from 2017). The next review was due in 2021 however due to COVID-19, it has been postponed till 2023.

What is Small Business Rate Relief?

Small Business Rates Relief is a reduction in the amount of tax a small business has to pay. Rate relief is given to small businesses who meet certain criteria.

Your business could be eligible, if:

  1. your property’s rateable value is less than £15,000
  2. your business only uses one property

You may still be able to get relief if you use more than one property but on following conditions:

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

Rural Rate Relief

You could get rural rate relief if your business is in a rural area with a population below 3,000.

You will not pay business rates if your business is in an eligible area and either:

  1. the only village shop or post office, with a rateable value of up to £8,500
  2. the only public house or petrol station, with a rateable value of up to £12,500

Charitable Rate Relief

Charities and community amateur sports clubs can apply for charitable rate relief of up to 80% if a property is used for charitable purposes.

Exempted Buildings and Empty Buildings Relief

Certain commercial properties or buildings qualify 100% rate relief, or some may qualify for extended rate relief for certain period of time. Learn more here.

Please note: To get Business Rate Relief you must apply to your Local Council. Check your Local Council Here

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