Small business rate relief
In England small businesses are generally entitled to small business rate relief if the rateable value of their premises is less than £15,000. Additional properties with rateable values below £2,200 are disregarded when considering applications for small business rate relief. However, the rateable value for such properties are included in determining whether the threshold criterion has been met.
In small business rate relief the amount of relief depends on the rateable value.
If the rateable value of the property is less than £5,000, the rates are calculated using the small business multiplier, which for 2008/09 is 45.8 pence, and reduced by 50 per cent.
If the rateable value is from £5,000 to £9,999, the reduction decreases on a sliding scale of 1 per cent for every £100. For example, if the rateable value is £7,500, the rates are reduced by 25 per cent.
If the rateable value is from £10,000 to £14,999, rates are calculated using the small business multiplier. For 2008/09, the small business is 45.8 pence (instead of the standard 46.2 pence).
Since 1 April 2008, empty business properties have been exempted from business rates for the first three months that they are empty. Industrial and warehouse properties qualify for a further three months' exemption from business rates. After that, full business rates are normally payable.
