Budget Announcement - a further six months increase of Small Business Rate Relief

The Chancellor of the Exchequer announced that the current temporary increase in Small Business Rate Relief, which started on 1 October 2010 and was due to end on 30 September 2012, will continue for a further six months (1 October 2012 to 31 March 2013). The measure doubles the usual rate of relief so that ratepayers with rateable values below £6,000 pay no rates at all for the period, while ratepayers with rateable values between £6,000 and £12,000 receive tapered relief from 100 per cent to 0 per cent.

The current scheme came into effect in October 2010 when the Government introduced a temporary increase in the level of Small Business Rate Relief (SBRR) available to eligible businesses.

What are the levels of relief given to qualifying businesses under the Small Business Rate Relief Scheme?

From 1 October 2010 to 31 March 2013

Rateable values between £1 - £5,999

Business rates will be calculated using the reduced non domestic multiplier and receive 100 per cent relief on the amount payable 

Rateable values between £6,000 - 11,999 

Business rates will be calculated using the reduced multiplier and relief will decrease on a sliding scale of approximately 1 per cent for every £240

Rateble value between £12,000 - 17,999

Business rates will be calculated using the reduced non domestic multiplier

The small business rate multiplier for 2011-12 is 42.6p

The small business rate multiplier for 2012-13 is 45.0p

For further information please contact the non-domestic rates section using the contact details on the right.