Business rates relief

October 3rd 2014

There are a number of reliefs available to owners or tenants of smaller business premises. This article lists a number that can be claimed.

Small business rate relief:

You’ll get 100% relief (doubled from the usual rate of 50%) until 31 March 2015 for properties with a rateable value of £6,000 or less. This means you won’t pay business rates on properties with a rateable value of £6,000 or less.

The rate of relief will gradually decrease from 100% to 0% for properties with a rateable value between £6,001 and £12,000.

Retail relief:

Some local councils will give you up to £1,000 off your business rates if you occupy a retail property with a rateable value of £50,000 or less. To be eligible the property must mainly be used as a shop, restaurant, cafe or drinking establishment.

You’re usually not eligible if your business provides financial services, medical services or professional services like legal advice or accounting.

Empty properties re-occupation relief

You may get 50% off your business rates if you start occupying a retail premises that’s been empty for one year or more.

Rural rate relief:

You may qualify for the rural rate relief if your business is in a rural area with a population below 3,000. The relief is between 50% and 100% off your business rates.

You can get rural rate relief if your business is:

  • the only village shop or post office with a rateable value of up to £8,500
  • the only public house or petrol station with a rateable value of up to £12,500

Local councils can also:

  • top up the mandatory 50% relief to 100%
  • give relief to other rural retail businesses of up to 100% (for properties with a rateable value under £16,500)

The availability of the various reliefs will depend where you business is based. If you think you may qualify for any of the rates relief discuss your options with your local council.

Please contact DSC Chartered Accountants if you would like to discuss this article in more depth.