Small Business Rate Relief 2023/24 - ENGLAND

Introducing our Small Business Rates Relief Fact Sheet for England! As a business owner, navigating the world of business rates can be a daunting task. However, with the right guidance and support, you can ensure that you are taking full advantage of any available relief and minimizing your rates liability.

We understand the importance of mitigating business rates and maximizing savings for our clients. Our team of experts has put together this fact sheet to help small business owners and landlords to small business owners understand the ins and outs of Small Business Rates Relief (SBRR).
 
SBRR is a government scheme designed to provide relief to small businesses with low rateable values. With the potential to reduce business rates by up to 100%, it is a valuable scheme that can significantly benefit eligible businesses. This fact sheet provides detailed information on eligibility criteria, and the relief available, as well as answering some of the most commonly asked questions about SBRR.
 
Whether you are a small business owner or an accountant advising clients, our fact sheet can be used as a valuable resource to help you navigate the complexities of business rates relief.

Small Business Rate Relief 2023/24
You can get small business rate relief if:
• you only use one property in England
• your property’s Rateable Value (RV) is less than £15,000 or
• you have one main property and other additional properties in England with RVs of less than £2,899. The aggregate value of all properties must not be more than £27,999 in London (or £19,999 outside London)

What you get
You’ll get 100% relief for one property with a RV of £12,000 or less. This means you won’t pay business rates on properties with a RV of £12,000 or less. The rate of relief will decrease from 100% to 0% for properties with a RV between £12,001 and £15,000.

What if you have more than one property?
You can get small business rate relief on your main property if the RV of each of your other properties is less than £2,899.
You’ll keep getting any existing relief for one year when you get a second property.
Empty properties or those in other countries (e.g., Wales, Scotland) do not count as second properties.

You’re a small business but don’t qualify for relief
If your property has a RV below £51,000 your rate bill will be calculated using the lower small business non-domestic multiplier unless you receive mandatory charitable relief, or the property is vacant. Even if you don’t qualify for small business rate relief, your business rates will be calculated using the small business multiplier (2023 £0.499) instead of the standard one (2023 £0.512). This is the case even if you have multiple properties.

Your circumstances change
Eligible businesses are required to apply for small business rates relief only once between each revaluation provided certain defined circumstances do not change. These are: -
• where the RV of any property you occupy in another council area increases
• you occupy any property, which is not mentioned on your previous application for relief.
If these arise you must notify the council and relief may be stopped from the date of change.

The 2023 revaluation increases your Rateable Value
Together with transitional relief that would likely restrict the first-year liability increase to 5%, the government has announced ‘Supporting Small Business Relief (SSBR)’. SSBR will ensure that the increase in the bills of ratepayers who were eligible for Small Business Rates Relief at 31/03/23 is limited to a cash value of £600 per year for 2023/24, 2024/25 and 2025/26.

Please Contact Us
Should you have any queries regarding Small Business Rates Relief or require further advice please feel free to contact a member of the Business Rates team at Daniel Watney LLP.