Small Business Relief

From 1 April 2005, a new scheme was introduced to give small businesses a reduction of up to 50% in the amount of business rates they pay.

The scheme coincided with the 2005 revaluation of business premises and applies to properties where the Rateable Value on 1st April each year is less than £15,000. The cost of the relief will be met by an increase in the rate multiplier for other businesses.

Qualifying for Relief

Your business may qualify if you:

• Occupy only one rated property in England, where the Rateable Value is less than £15,000; or
• Occupy one rated property in England with a Rateable Value of less than £15,000 plus other properties, provided that:
  
  1. All other properties have a Rateable Value of less than £2,200 and
  2. The total of the main property plus all the other properties is less than £15,000

Application for Relief

Relief is not automatic and can only be granted if a ratepayer makes application in writing. An application must be:

• Made on the specified form
• Signed by the ratepayer or authorised person
  
  N.B. In the case of a company, this means a director of the company
  in the case of a partnership, this means one of the partners
  in the case of a trust, this means a trustee of the trust

Amount of Relief

The maximum amount of relief that can be granted under the scheme is 50%, with the actual amount of relief being dependant on the rateable value of the main rating assessment as follows:

• If the rateable value of the main property is £5,000 or less, relief will be 50% of the amount otherwise payable
• If the rateable value is between £5,000 and £10,000 the relief will be calculated on a sliding scale between 49% and 1%
• If the rateable value is between £10,000 and £14,999, although there will be no relief, the amount due will be calculated on the lower small business multiplier rather than the standard multiplier that applies to other businesses. You will still need to complete an application form to be eligible for the small business multiplier.

The Small Business Multiplier for 2008-09 is 45.8p and the Standard Multiplier for 2008-09 is 46.2p.

Standard Multiplier

The standard multiplier will be paid by:

• Businesses who do not meet the definition of a small business
• Businesses who may qualify for relief, but have not made a valid application
• All occupiers of property with a rateable value of £15,000 or higher
• All owners of empty property (except where full exemption applies)

Please note that if a ratepayer qualifies for relief on their main business premises, the standard multiplier will be paid on any other properties with a rateable value of less than £2,200.

If You Think You Qualify for Small Business Rate Relief

You must complete all parts of the application form and return it to Business Rates section at Swindon Borough Council as soon as possible. If you are making an online application via the Council's website, you will also be required to print and then sign a copy of the completed form, which must then be returned to the Business Rates section at the address shown on the form.

Statutory Warning

Under the Non-Domestic Rating (Small Business Rate Relief) (England) Order 2004, you should be clearly aware that it is a criminal offence to give false or misleading information when making an application for small business rate relief.

Application Form