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Supporting Small Businesses Relief

Some ratepayers may have lost their entitlement to small business rate relief following revaluation on 1 April 2017. Find out what you can do about this.

Following the revaluation of rateable values that took effect on 1 April 2017, some ratepayers previously in receipt of small business rate relief or rural rate relief may have lost entitlement to relief due to the rateable value thresholds involved. 
 
In the Spring Budget, the Chancellor announced that a new scheme of relief would be made available to those ratepayers facing large increases as a result of the loss of small business or rural rate relief due to the revaluation.

Criteria

We are granting Discretionary Rate Relief under S47 of the Local Government Finance Act 1988 in accordance with the criteria set out in the DCLG Business Supporting Small Businesses - Guidance June 2017 document (Annex A BRIL 4/2017) see Gov.UK's Spring Budget Update on the publications web page.

Eligibility

To be eligible, ratepayers must meet all the criteria:

1. On 31 March 2017 ratepayers must have been in receipt of either Small Business Rate Relief, or Rural Rate Relief.

2. On 1 April 2017 ratepayers must have lost some or all of their small business or rural rate relief because of the 2017 revaluation, and as a result the chargeable amount for 1 April 2017 is more than (£600/365) higher than the chargeable amount for 31 March 2017 (calculated before any Section 47 discretionary relief entitlement). 
 
Eligibility ceases when the:

  • liability for a day calculated without Supporting Small Businesses Relief is the same as, or less than, the calculation with the relief.

  • ratepayer is a charity or Community Amateur Sports Club.

  • property is unoccupied. 

 Once lost, eligibility cannot be reinstated. 
 
A change of ratepayers does not affect eligibility for the Supporting Small Businesses Relief scheme. 
 
There is no second property test for eligibility for the Supporting Small Businesses Relief scheme. However, those ratepayers who during 2016/17 lost entitlement to small business rate relief because they failed the second property test but have, under the rules for small business rate relief, been given a 12 month period of grace before their relief ended, can continue on the scheme for the remainder of their 12 month period of grace.

How we calculate the relief

We will calculate the relief after any entitlement to Transition, Section 44 A, Small Business Rate Relief and Rural Rate Relief.  

We will apply any other relief after Supporting Small Businesses Relief.

Supporting Small Businesses Relief is available for 2017/18 to 2021/22 only, and is subject to State Aid de minimis limits (please read our State aid rules page for more information). 
 
The increase per year for eligible ratepayers is the greater of a specified percentage plus inflation or £600 per year. 
 
Specified percentages are: 

YearSpecified percentage
2017/185 per cent
2018/197.5 per cent
2019/2010 per cent
 2020/2115 per cent
2021/2215 per cent

Ratepayers on the Supporting Small Businesses Relief scheme whose 2017 rateable values are £51,000 or more, will not be liable to pay the supplement to fund small business rate relief while they are eligible for the Supporting Small Businesses relief scheme. 
 
Ratepayers remain in the Supporting Small Businesses Relief scheme for five years or until they reach the bill they would have paid without the scheme.   
 
If there is a change of circumstances at any time, we will recalculate the relief. The change of circumstances could arise during the year in question or during a later year, for example, a backdated change to the rateable value.   
 
Separate rules apply where there is a change in rateable value. Please telephone us for further details if you think these will apply. In simplified terms, if your rateable value increases after 1 April 2017, you will pay the increased charge resulting from that change.