Rate relief

Small business rate relief and changes effective from 1 April 2010

The Government introduced the Small Business Rate Relief (SBRR) scheme on the 1st of April 2005. It is designed to help small businesses reduce their Business Rate bill.

If you already receive small business rate relief you will continue to receive it throughout the period of the 2010 revaluation without reapplying for it. If your circumstances change, for example if you are no longer entitled to the relief as you occupy more than one property in England, you must contact the local taxation section immediately.

If you are not currently in receipt of relief, but think you may be entitled, you may still apply and relief may be backdated to run effective from 1 April 2007. However, your   application must be made no later than 30 September 2010 (please complete a small business rate relief appn 2007-2010).

If you have moved in to a property on or after 1 April 2010 and believe you may be entitled to relief, you will be required to complete and return an application (please complete a small business rate relief appn 2010-2015).

As a result of the 2010 revaluation, the current small business rate relief rateable value thresholds will increase.
From 1 April 2010 any ratepayer who occupies a single property within England where the rateable value (RV) is less than £18,000 will be entitled to the following relief:

RV Range Relief
£1 -£6,000 Business rates calculated using the reduced non domestic multiplier and 50% relief
£6,001 - £11,999 Business rates calculated using the reduced non domestic multiplier and relief declining on a sliding scale of 1% for every £120.
£12,000 - £17,999 Business rates calculated using the reduced non domestic multiplier
   

The relief will also apply where a ratepayer occupies a main property with an RV of less than £18,000 but has ancillary properties with RVs of less than £2,600 each providing that the total RV of all properties does not exceed £17,999.  In this case, the relief will only be applied to the one main property.

Examples where you may be entitled to a reduction

a) If you occupy a main property with a Rateable Value of £ 8,000 and also occupy a second property with a Rateable Value of £1,000, you will be eligible to claim relief on the main property only.

b) If you occupy a main property with a Rateable Value of £8,000 and also occupy two more properties, each with a Rateable Value of £1,000, you will be eligible to claim relief on the main property only.

Examples where you will not be entitled to a reduction

a) If you occupy a main property with a Rateable Value of £8,000 and also occupy a second property with a Rateable Value of £4,000, you will not be eligible to claim relief because your second property has a Rateable Value greater than the £2,600 limit.

b) If you occupy a main property with a Rateable Value of £14,000 and also occupy two more properties, each with a Rateable Value of £2,250, you will not be eligible to claim relief because the sum of the Rateable Values of your properties is greater than £18,000.

How to apply

Download, complete and return the application form to the Business Rates Section.

Downloads 

BUDGET ANNOUNCEMENT - INCREASE IN LEVEL OF SMALL BUSINESS RATE RELIEF

The Government introduced a small business rate relief scheme to ease the rate burden on small businesses.

From 1st October 2010, Government introduced, for one year, a more generous level of small business rate relief.

As a result those ratepayers eligible for relief and whose property has a rateable value below £6,001 will not have to pay any Business Rates from 1st October for a year.  If the rateable value is between £6,001 and £12,000, the amount payable will be reduced on a sliding scale.

There is no change if the rateable value is over £12,000.

An announcement that this scheme will be extended to October 2012 was made in the Budget speech on 23rd March 2011, and an information letter from the Government is available to download at the bottom of this page.

Knowsley Council has no further information regarding this change currently, but it will not affect your Business rates instalments until October 2011. Please continue to pay your instalments as detailed on your most recent bill.

If you have further enquiries you can contact the Business Rates Section for information / clarification telephone 0151 443 4126/4069(9.00am to 1.00pm) or email business.rates@knowsley.gov.uk

Small Business Rate Relief Changes – Budget 23 March 2011

Announcement from the Department for Communities and Local Government (PDF).

Charity and registered community amateur sports club relief

Charities and registered community amateur sports clubs are entitled to 80% relief where the property is occupied by a charity of club and is wholly or mainly used for charitable purposes or as a registered community amateur sports club.

The local authority has discretion to give further relief on the remaining bill.

Non-profit making organisation relief

The local authority has discretion to give relief to non-profit making organisations. Full details can be obtained from Knowsley MBC.

Hardship relief

The local authority has discretion to give relief in special circumstances. Full details can be obtained from Knowsley MBC.

If you wish to talk to a member of staff, please contact the Business Rates Office on 0151 443 4126/4069 or email business.rates@knowsley.gov.uk