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Small Business Rate Relief

Supporting small business relief

The supporting small business relief was established to assist ratepayers that experienced large increases in their business rates, as a result of the loss of small business rate relief following the revaluation in 2017.

Supporting small business relief started 1 April 2017 and ensured that a ratepayer who lost their entitlement to small business rate relief due to the revaluation, was no worse off than the greater of £50 per month (i.e. £600 per annum) or an increase of 5%, 7.5%, 10%, 15% and 15% (plus an amount for inflation) from 2017/18 through to 2021/22.  

The percentage increase was determined by applying it to the 31st March 2017 Business Rates bill after the deduction for small business rate relief.

Entitlement ceased if the ratepayer’s bill was less than £1200 in 2018/19, or £1800 in 2019/20 or £2400 in 2020/21, etc. and continued upon a change of ratepayer.

Entitlement also ceased if the property became vacant or was occupied by a charity or community amateur sports club (i.e. CASC).  The relief was not permitted to restart again, once entitlement had ceased.

 Additionally, ratepayers receiving this relief, did not have to pay the small business rate supplement if their property rateable value was above £51,000.

If the amount of Business Rates payable altered due to changes in the rateable value, changes to the property, or liability, then the relief was recalculated and could for example include a prior year adjustment where the effective date of change was in an earlier year.

The Government announced an extension to the scheme for 2022/23 only based upon the scheme remaining as it was for 2021/22 using a percentage cap in 2022/23 of 15% (or a cash value increase of £600 if greater).

Further details can be found by visiting Extension of Transitional Relief and Supporting Small Business Relief for small and medium properties

There is no need to make an application for this reduction as the award is automatic and will be shown on your bill if you are eligible, once the software to enable this has been received. This will be after 1st April 2022.