The Government Improves Business Rates Relief
17th November 2011
……. but don’t shout about it !
The Government, in the form of the Valuation Office Agency, have recently changed the rules regarding the ability of a business to claim Small Business Rates Relief on their business rates liability. The problem is they don’t seem to have told anyone about it, so it is our mission to spread the word as far and wide as possible.
Upon the assumption that you aren’t based in London (where different rules apply), the situation used to be…..
- If your 2010 Rateable Value was £6,000 or below, the Small Business Rates multiplier (£0.426 as opposed to £0.433) was used and your bill would be reduced by 50%.
- If your 2010 Rateable Value was between £6,001 and £11,999, the Small Business Rate multiplier was again used and the bill reduced on a sliding scale from 50% at the bottom of the range to 0% at the top.
- If your 2010 Rateable Value was between £12,000 and £17,999, the Small Business Rate multiplier was used only.
However (and here’s the rub), from 1st October 2010 to 30th September 2012, businesses whose Rateable Value is less than £6,000 will receive Small Business Rate Relief at 100% – i.e. they will pay nothing! Furthermore, for those businesses whose Rateable Value falls between £6,000 and £12,000, the tapering relief will be calculated based on a sliding scale of 0 – 100% rather than the current 0 – 50%. Hence, their rating liability should halve.
Small Business Rates Relief is administered by the Local Council, so we would urge any business that qualifies to contact them as soon as possible, as the savings are considerable.
If you would like to discuss this further, please contact any of the surveyors within NG Chartered Surveyors.