Business

Small business rate relief

The scheme started on 1 April 2005 and, initially, an application was required annually. However, since 1 October 2006, and for the financial years 2007 to 2009, only one new application is required.

Ratepayers must notify the billing authority within four weeks of any change in circumstance that could effect their entitlement to the relief. Failure to meet this requirement will bring the existing relief to a retrospective end and any new relief will only apply from the receipt date of a new claim.

In addition, a further application is required where there is occupation of an additional property in England. The ratepayer must also give written notification (within six months) to the billing authority where a change in the rateable value of any property not in that area has occurred.

Outline of the scheme

• Eligible properties (hereditaments) with a 2005 Rating List rateable value of £5,000 or less will get 50% rate relief.
• For eligible properties with a 2005 Rating List rateable value of between £5,001 and £10,000, relief will decrease on a sliding scale of 1% for every additional £100 of rateable value.
• Eligible properties with a rateable value between £10,001 and £14,999 (outside Greater London) and between £10,001 and £21,499 (within Greater London) will have rate relief of 0% but will have their bill calculated using the small business non-domestic rating multiplier.
• Eligible properties will have their bill calculated using the small business non-domestic rating multiplier as opposed to the standard rate.

Eligibility criteria

• The rateable value of the property must be within the thresholds stated above.
• The hereditament must meet the criteria on 1 April of the relevant chargeable year and on every chargeable day for which the ratepayers are claiming eligibility.

The relief is only available to ratepayers who are the occupiers of:

• one property only in England
• one main property and other additional properties in England, providing those additional properties have rateable values less than £2,200 and the total value of all the properties remains under the appropriate threshold (£15,000 outside Greater London and £21,500 within Greater London). The applicable threshold (£15,000 or £21,500) will be based on the location of the main eligible property and not the location of the additional properties
• application is made to the billing authority where the main eligible property is situated
• properties in the buffer zone (rateable value between £10,001 and £14,999) must apply for the relief. The same eligibility criteria apply.

Calculation of the bill and changes through the year

• The relief will be applied to the main eligible property only.
• The charge on any additional properties (under £2,200) will be based on the higher non-domestic rating multiplier.
• The bill will be calculated for each chargeable day that the property remains eligible. As soon as a ratepayer fails to meet the criteria above (for example, property is vacated, change of ratepayer or additional property occupied by same ratepayer) they are no longer due the relief.

Registration

Ratepayers must apply to the local authority for the relief.

The application may be submitted electronically to croynndr@croydon.gov.uk.

Applications may be accepted up to either six months before or after the start of the financial year to which the application applies.

If the 2005 Rating List rateable value is altered, applications may be accepted up to six months after the date of notification of the alteration.

Interaction with other reliefs

If a ratepayer is eligible for Charity Relief or Rural Rate Relief, they will receive that rather than Small Business Rate Relief.

Transitional Relief is applied before the Small Business Rate Relief is applied.

Contact Details

Contact name

Business Rates Section

Department

Finance

Telephone

020 8667 8385

Fax

020 8667 8440

Email

croynndr@croydon.gov.uk

Address

Business Rates Section, Croydon Council, Municipal Offices, Fell Road, Croydon, CR9 1QA