The England and Wales’ business rates system is not the easiest to navigate for any new business owner and the various relief schemes that have been introduced over the years can seem daunting.
Currently, there are more than a dozen different types of reliefs available, and some are more well-known than others, for example: Small Business Rate Relief, Rural Rate Relief, Empty Property Relief and Transitional Relief.
If you are a new business owner, here are the most common business rate reliefs in England and Wales that you might come across and are worth knowing about:
- Small Business Rates Relief (SBRR): This relief is available to businesses that occupy premises with a rateable value of up to £15,000 in England and up to £12,000 in Wales. Eligible businesses with a rateable value of up to £12,000 can receive 100% relief, and those with a rateable value between £12,001 and £15,000 can receive relief on a tapered basis from 100% to zero per cent.
- Retail, Hospitality and Leisure Business Rates Relief: In England, the 2024/25 Retail, Hospitality and Leisure Business Rates Relief scheme will provide eligible, occupied, retail, hospitality, and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business. The guidance for England can be found here https://www.gov.uk/guidance/business-rates-relief-202425-retail-hospitality-and-leisure-scheme. In Wales the cash cap applies at £110,000 per business with the relief percentage 40%. The guidance for Wales can be found here https://businesswales.gov.wales/non-domestic-rates-retail-leisure-and-hospitality-rates-relief-2024-25
- Rural Rate Relief: This relief is available to businesses in designated rural areas in England and Wales. Eligible businesses can receive up to 100% relief, depending on your location and RV.
- Enterprise Zone Relief: This relief applies to businesses located within designated Enterprise Zones. It offers enhanced relief on business rates for up to five years, encouraging investment and economic growth in those areas.
- Transitional Relief: A mechanism that limits how much your bill can change each year due to business rates revaluation. The purpose is to help mitigate the impact of significant rate changes resulting from a Revaluation. If your rates go up by more than a certain amount, changes to your bill are gradually phased in over time.
These are just a few examples of the most common business rate reliefs, and there may be other specific reliefs available depending on the size, circumstances and location of your business.
For expert advice to ensure your business is getting the right amount of relief that is available contact our team at info@dunlopheywood.com.
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