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Small Business Rate Relief
Small Business Rate Relief - Available from 1st April 2005
On the 1st of April 2005, the Government introduced a new scheme called the Small Business Rate Relief (SBRR). It is designed to help small businesses reduce their Business Rate bill.
Eligible businesses with rateable values of below £5,000 will get 50% rate relief on their liability. This relief will decrease on a sliding scale of 1% for every £100 of rateable value over £5,000, up to £9,999.
The relief is available to ratepayers with either one property with a rateable value under £15,000 or if you have more than one property, but the combined rateable value is less than £15,000.
You may be entitled to a reduction in your Business Rates bill if your business occupies one rated property in England, with a Rateable Value of less than £15,000 plus other properties rated in England, if:
1. All other properties have a Rateable Value of less than £2,200
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
In calculating relief, your main property will be classed as the property with the higher Rateable Value.
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, both with a Rateable Value of £1,000 each, 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 £3,000, you will not be eligible to claim relief because your second property has a Rateable Value greater than the £2,200 limit.
b) If you occupy a main property with a Rateable Value of £12,000 and also occupy two more properties, both with a Rateable Value of £2,000, you will not be eligible to claim relief because the sum of the Rateable Values of your properties is greater than £15,000.
Check your Rateable Value on the Valuation Office website
All cases where SBRR applies will have the Rates liability calculated using the lower multiplier which was introduced with the scheme on 1st April 2005 There are now two multipliers. For 2006/07, the small business multiplier, applicable to those businesses eligible for Small Business Rate Relief, is set at 42.6p. The standard multiplier, which includes the supplement to pay for Small Business Rate Relief, is set at 43.3p.
A letter has been sent to all businesses affected within the Sheffield, however, if you believe your business falls into this category and you have not received a letter, please contact the Business Rates Department on (0114) 273 4318 or Please click to download an application form
The supplement payable for Small Business Rate Relief.
For properties that do not qualify for small business rate relief, the higher multiplier is used when calculating the bill.
The difference between the Non Domestic Multiplier and the Small Non Domestic Multiplier (for 2005/6 this is 0.007) is outside of the Transition scheme. This means that if you do not qualify for relief, the amount equal to the Rateable Value multiplied by 0.007 is also added to the transitional amount to pay for Small Business Rate Relief.
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