Business rates reductions and exemptions

From 1 April 2024 the ratepayer of a property with a rateable value which does not exceed £50,999 will automatically have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier. Between 1 April 2017 and 31 March 2024 ratepayers who are not entitled to another mandatory relief or are liable for unoccupied property rates and occupy a property with a rateable value which does not exceed £50,999 have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

From 1 April 2017

In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £14,999, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill.   

Generally, the percentage reduction (relief) will only available to ratepayers who occupy either:

1. one property, or
2. one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.

The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.

Relief is based on a sliding scale:

• Properties with a rateable value of up to £12,000 get 100% relief.
• For properties with a rateable value between £12,001 and £14,999, relief is reduced by 4% for every £120 of rateable value.  

In addition, the Government introduced additional support to small businesses. For those businesses that take on an additional property after 14 February 2014 which would normally have meant the loss of small business rate relief, the Government  confirmed that the ratepayer is allowed to keep that relief for a period of 12 months.

Between 1 April 2012 and 31 March 2017

Ratepayers who are not entitled to another mandatory relief or are liable for unoccupied property rates and occupy a property with a rateable value which does not exceed £17,999 outside London or £25,499 in London will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £11,999, the ratepayer will receive a percentage reduction in their rates bill for this property of up to 100% for a property with a rateable value of not more than £6,000.

Generally, this percentage reduction (relief) is only available to ratepayers who occupy either:

1. one property, or
2. one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,599.

The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £17,999 outside London or £25,499 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.

Relief is based on a sliding scale:

• Properties with a rateable value of up to £6,000 get 100% relief.
• For properties with a rateable value between £6,001 and £11,999, relief is reduced by 2% for every £120 of rateable value.  

Where a ratepayer meets the eligibility criteria and has not received the relief they should complete an application form. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.

Certain changes in circumstances will need to be notified to the local authority by a ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are:

1. the ratepayer taking up occupation of an additional property, and
2. an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.