Small business rate relief can only be claimed by a ratepayer on one occupied non-domestic rated hereditament in England or Wales.
The following criteria relates to small business rate relief applicable to the rating period commencing 1 April 2017 as derived by The Valuation Office Agency.
Ratepayers who occupy one hereditament
If you are liable for non-domestic rates on one property only that is occupied, small business rate relief can be applied where the rateable value of the premises does not exceed £15,000.
Ratepayers who occupy multiple hereditaments
If you are liable for non-domestic rates on more than one occupied property, then relief can be awarded to the hereditament with the largest rateable value only where the following criteria is met:
- The rateable value of the largest occupied hereditament does not exceed £15,000
- The combined rateable value of all occupied hereditaments does not exceed £19,999
- The rateable value of each occupied hereditament (excluding the largest one) does not exceed £2,899
The level of relief applicable on a qualifying hereditament is as follows:
|Rateable value||Relief amount|
|£1 to £12,000||100%|
|£12,001 to £14,999||1% to 99%|
Where your rateable value is between £12,001 and £14,999, you can use our calculator tool (Excel, 13KB) to work out the level of relief applicable.
Non-domestic rated hereditaments which are unoccupied are not entitled to receive small business rate relief and are subject to charges/reductions under empty property rate regulations. For the purposes of determining eligibility for multiple hereditaments, unoccupied premises are disregarded as additional hereditaments.
Changes in circumstance
If you have been awarded small business rate relief and any of the following changes in circumstances occur, you must report this to Scarborough Borough Council within 21 days:
- If the Valuation Office Agency increases the rateable value of a business rated premises you are liable for that is not in the Scarborough Borough Council area.
- If a property you are liable for that is listed as empty becomes occupied
- If you become responsible for another business rated hereditament in another council area
- If the property you are receiving small business rate relief on ceases to be occupied by you
To report any of the above changes please e-mail email@example.com or telephone 01723 232378.
Extension scheme when ceasing to qualify
Effective from 1 April 2014, the government announced a one-year extension scheme for ratepayers who take on an additional business rated hereditament resulting in the qualifying criteria for small business rate relief no longer being met. The extension scheme allows for small business rate relief to continue on the hereditament that was originally in receipt of the relief for a period of one year from the date that eligibility ceases. When reporting a change in circumstance to Scarborough Borough Council that results in small business rate relief no longer being applicable, then we will automatically award the one-year extension when actioning the change.
Backdating of applications
Awards of relief can be considered retrospectively to 1 April 2012. For details of qualifying thresholds prior to 1 April 2017, please e-mail firstname.lastname@example.org
Example scenarios for small business rate relief:
Scenario: Mr Smith occupies ‘Premises A’ only that has a rateable value of £10,000:
SBRR outcome: 100% relief on premises A
Scenario: Mrs Taylor occupies ‘Premises B’ only that has a rateable value of £16,000:
SBRR outcome: no relief applicable as above the maximum rateable value threshold.
Scenario: Miss Rogers occupies ‘Premises C’ that has a rateable value of £5,000 and also occupies ‘Premises D’ that has a rateable value of £2,500:
SBRR outcome: 100% relief on premises C and no relief on premises D
Scenario: Mr Davey occupies ‘Premises E’ that has a rateable value of £4,000 and also occupies ‘Premises F’ that has a rateable value of £3,500:
SBRR outcome: no relief on either property as above the maximum rateable value threshold.
Scenario: Mr Johnson occupies ‘Premises G’ that has a rateable value of £2,500 and then at a later date occupies ‘Premises H’ in addition that has a rateable value of £4,000:
SBRR outcome: 100% relief applicable on premises G until the point premises H becomes occupied. From that point 100% relief is applicable on premises H and no relief on premises G.
Scenario: Miss Williams occupies ‘Premises J’ that has a rateable value of £10,000 and then at a later date occupies ‘Premises K’ that has a rateable value of £5,000:
SBRR outcome: 100% relief on premises J until the point premises K becomes occupied. From that date the one-year extension is applied to premises J and no relief on premises K.