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Small Business Rate Relief - Make Sure You Claim

Posted on May 08, 2014 by James Barry


Duty Free
In order to claim small business rate relief you must apply to your local authority. Relief will not be given automatically. It is suggested that less than 50% of eligible businesses have applied in England (interestingly it is automatically given in Wales), but you could get 100% relief depending on your rateable value.

Who benefits

If commercial premises have a rateable value of £6,000 or less eligible ratepayers will be entitled to 100% rate relief.

For premises with a rateable value of between £6,001 and £12,000 the relief tapers from 100% to 0%.

Conditions

In order to qualify for small business relief:-

  • You must only use one property
  • The rateable value must be below £12,000
  • You must not be in receipt of Mandatory Charitable Rate Relief
  • You must not be in receipt of either exemption or relief from Empty Property Rates.

It is worth remembering also that this extended 100% relief is only available to 31st March 2015 (doubled from the usual rate of 50%).

What if you have more than one property?

You will qualify if you occupy one main property with a rateable value less than £18,000 (£25,500 in Greater London),  you have ancillary properties each with rateable value less than £2,600 and where the rateable value of all properties does not exceed £18,000 (£25,500 in Greater London). In this case relief will only be applied to the one main property.

What if the rateable value is above £12,000 but below £18,000 (£25,500 in Greater London)?

Although in these cases you will not be entitled to small business rate relief you are entitled to have the small business multiplier applied to the rateable value instead of the standard one which will produce a lower rates payable figure. This is the case even if you have more than one property and will be in addition to any rate relief given.

Conclusion

Many businesses entitled to claim for small business rate relief are simply not doing so. The main reasons are:-

  • They are simply not aware of the reliefs available
  • They think it is too much trouble to apply
  • They believe that the amounts involved are not worth the trouble

However, claiming is very easy. Simply contact your local authority and ask for the necessary forms. Complete, return and sit back.

Checking the rateable position of a property is just one of the many items under the heading of due diligence that JAMES Chartered Surveyors as experienced property acquisition and relocation agents will undertake as part of the acquisition process.

JAMES Chartered Surveyors are  commercial acquisition and relocation agents acquiring shops, offices, factories, leisure properties and development sites throughout Buckinghamshire, Berkshire, Oxfordshire and West London. Please contact us for further information.

Tel: 01628 486992

Tel: 07827446132

Email: james@jamescs.co.uk

Web: www.jamescs.co.uk

 

This article has been prepared by JAMES Chartered Surveyors for general information purposes only and is not intended as legal advice. Specialist advice should be obtained before taking or refraining from taking actions based on comments in this paper. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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