Revised thresholds for small business and rural rate relief

Relevant to Businesses that occupy non-domestic premises in England

From 1 April 2010, the thresholds for small business rate relief and rural rate relief will increase. The rules on reapplying for relief will also change.

Small business rate relief (SBRR)

You can claim SBRR if:

• you occupy only one property
• its rateable value is below a certain threshold

On 1 April 2010, this threshold will increase from:

• £21,500 to £25,500 for properties in Greater London
• £15,000 to £18,000 for properties outside Greater London

SBRR for multiple properties

If you occupy more than one property, any additional property will be disregarded for the purposes of claiming SBRR if its rateable value is below a certain threshold.

On 1 April 2010, this threshold will increase from £2,200 to £2,600.

However, you will still only be able to claim SBRR if the total rateable value of all your properties is below the new £25,500 or 18,000 threshold.

Rural rate relief (RRR)

You can claim RRR if:

• your business is the last essential service in a rural area
• the business appears in the local rural settlement list for a defined settlement of less than 3,000 people
• the rateable value of your premises is below a certain threshold

On 1 April 2010, the mandatory threshold will increase from:

• £10,500 to £12,500 for petrol filling stations and public houses
• £7,000 to £8,500 for a sole shop, general store or post office

The discretionary threshold for all other qualifying businesses will increase from £14,000 to £16,500.

Reapplications for any relief

If you are currently claiming either SBRR or RRR, as long as you meet the qualifying conditions that apply on 1 April 2010, you will not have to reapply for that relief.

As posted on www.businesslink.gov.uk