Shropshire Council

Small business rate relief

This relief was introduced by the government in 2005, in order to assist small businesses with the burden of paying rates. Initially the maximum level of relief available was 50% but from 1 October 2010 this was increased to 100%. Relief can usually be backdated to the beginning of the current rating list, which would be 1 April 2017, however, providing an application is received by 30 September 2017, then relief can be backdated to 1 April 2010.

Who is this relief available for?

For the period 1 April 2010 to 31 March 2017, SBRR is available for eligible businesses who occupy either:

  • One property in England with a rateable value of less than £18,000
  • One main property in England together with one or more additional properties, where the additional properties each have a rateable value of less than £2,600, and the combined rateable value of all the properties is less than £18,000

From 1 April 2017, SBRR is available for eligible businesses who occupy either:

  • One property in England with a rateable value of less than £20,000
  • One main property in England together with one or more additional properties, where the additional properties each have a rateable value of less than £2,900, and the combined rateable value of all the properties is less than £20,000

How much relief is available?

The amount of relief awarded depends on the rateable value of the property as follows:

  • Rateable value of £6,000 or less – 50%
  • Rateable value of between £6,001 and £12,000 – the 50% relief is reduced on a sliding scale which is approximately 1% for every £120 increase in rateable value over £6,000
  • Rateable value of between £12,001 and £17,999 – the liability is calculated using the lower small business multiplier

From 1 October 2010, the government introduced a temporary doubling in the levels of SBRR for eligible businesses with rateable values up to £12,000, resulting in the following:

  • Rateable value of £6,000 or less – 100%
  • Rateable value of between £6,001 and £12,000 – the 100% relief is reduced on a sliding scale which is approximately 1% for every £60 increase in RV over £6,000
  • Rateable value of between £12,001 and £17,999 – the liability is calculated using the lower small business multiplier

From 1 April 2017, the government has made permanent the doubling in the levels of SBRR for eligible businesses and have enhanced rateable value thresholds for entitlement, resulting in the following:

  • Rateable value of £12,000 or less – 100%
  • Rateable value of between £12,001 and £15,000 – the 100% relief is reduced on a sliding scale which is approximately 1% for every £30 increase in RV over £12,000
  • Rateable value of between £15,001 and £50,999 – the liability is calculated using the lower small business multiplier

The following should be noted:

  • You can only claim SBRR on one property
  • You can't claim for unoccupied properties
  • You can't claim SBRR where you are already in receipt of a mandatory rate relief

How to apply for small business rate relief

To award SBRR, we must be satisfied that the ratepayer meets the qualifying criteria. Therefore, you'll need to download and complete the application form attached to this page and return it to the address stated on the form.

Small business rate relief extension

New regulations came into force on 1 April 2014 allowing, for a period of 12 months, a small business already in receipt of SBRR to take on a second property without losing relief on the original property. After 12 months it would lose its SBRR, and full rates would be payable on both properties.

For further details you should contact the Business Rates team.