Business Rates - Reductions & Reliefs

There are a number of different reductions available...

Small Business Rate Reliefs

A Small Business Rate Relief Scheme was introduced in April 2005. The scheme provides a maximum of 50% mandatory rate relief for properties with a rateable value up to £6,000, with relief declining on a sliding scale until, at a rateable value of £12,000, there is no entitlement.

Relief will only be available to businesses occupying one property in England, with a rateable value less than £12,000, or businesses with one main property and other additional properties in England, providing the additional properties have individual rateable values below £2,600 and the combined rateable value of all the properties is below £18,000. In such cases, relief will only be applied on your main property (i.e. the property with the highest rateable value).

Download an application form now. 

Transitional relief

After each revaluation there is a period of transition. No bill is allowed to increase or decrease by more than a set percentage. Any property with a large increase or decrease in its rateable value will therefore come under the transitional relief scheme, which has the effect of phasing the valuation in over a period of time. If transitional relief applies to your rates bill, it will be applied automatically.

Empty properties

Previously, most properties received 100% relief for the first three months they were empty, followed by 50% relief thereafter until occupied. There were also certain types of industrial property (factories, workshops, warehouses) that benefited from 100% relief for the entire period they were empty.

From 1 April 2008, rating law was changed.

Now, whilst for the majority of commercial properties there is still a maximum of  three months exemption from the payment of rates from the date the property becomes empty, if after that period the property remains empty, full rates will become payable.

Industrial properties that have historically received full exemption from the payment of rates whilst empty (factories, warehouses and workshops) will now only benefit from a maximum  of up to six months exemption from the payment of rates. If after that period the property remains empty, full rates will become payable.

There are full and unlimited exemptions applicable to unoccupied charitable properties and listed buildings, and full exemptions for unoccupied small properties with rateable values of less than £18,000 (a government legislative change for 2009/10 extended to 2010/11. The threshold will be £2,600 from 1 April 2011). 

Charity relief

Charities are entitled to an 80% reduction in their bills. The Council has the discretion to reduce the bill further. In addition, the council has the discretion to grant relief to some other types of non-profit making bodies. Download an application form now. 

Hardship relief

This discretionary relief can be granted by the council if you are experiencing hardship and your business is considered to be important to the local community.

Contact the Business Rates Team on 0208 207 7409 for an application form. Alternatively, visit the official government website Business Link  for more information.