Outline of the scheme

  • Eligible properties with a rateable value of not more than £6,000 will get 50% rate relief.

  • This will decrease by approximately 1% for every £100 rateable value from £6,001 to not more than £12,000 rateable value.

  • Eligible properties with a rateable value from £12,001 to £17,999 will not get rate relief, but a reduced rate in the pound will apply. Properties within this “buffer zone” must still apply for the relief. The same eligibility criteria apply (see below).

Eligibility criteria

  • The property must be within the rateable value thresholds above.

  • The property must meet the criteria on every day that rates are due in 2010 onwards.

  • The reduction is only available to ratepayers with either:

    (i) one property in England or

    (ii) one main property in England and other additional properties in England, providing those additional properties have rateable values not more than £2,599 and the total value of all the properties remain under the appropriate threshold (ie £17,999).

Calculation of the bill and changes during the year

  • The relief will be applied to one property only. If you have an additional property with a rateable value of not more than £2,599, the relief will only be applied to the larger property.

  • The bill will be calculated for each day that the ratepayer is eligible. As soon as a ratepayer fails to meet the criteria above, they are no longer due the relief.

  • Any entitlement to transitional relief is applied before the small business rate relief is assessed.

Charge on the other hereditaments (property)

  • The charge on the additional hereditaments (not more than £2,599) will be based on the higher non-domestic rating multiplier.

Registration

  • Ratepayers must apply to the local authority for the relief each time a major revaluation takes place.

  • Applications for a financial year may be accepted up to six months before the start of the chargeable year and up to six months after the valuation period concerned.

Changes

  • A change occurs when:

    • there is an increase in the rateable value of a property occupied by the ratepayer which is not in the area of the billing authority granting small business rate relief - these changes will have to be notified in writing, and/or

    • the ratepayer occupies any additional property which is not mentioned in their application for relief.

  • These changes will have to be notified through a fresh application for small business rate relief.

  • As notifying the billing authority of these changes, within four weeks starting on the day after the date of change, will be a condition of entitlement, failure to notify the authority will mean that the ratepayer would no longer be entitled to the relief. If the ratepayer notifies the authority after the four week period, the ratepayer would lose relief from the day after the date of change until the day on which the authority is notified in accordance with the amended 2009 Order.

  • If the change of circumstances is such that the ratepayer will no longer be eligible for the relief, for example because the ratepayer occupies a new hereditament with a rateable value not more than £2,599 threshold, relief would be ended from the date of change.