Small Business Rate Relief (SBR)

1) What is the intention of the SBRR?

Business rates are a heavier burden for small businesses than for larger businesses. The Government has introduced the SBBR to reduce the burden of rates to small businesses. Businesses who are expected to benefit from the scheme will assist with Chester's economy as well as consumers and local communities.

The scheme started on the 1 April 2005 and the administration of the scheme for properties in Chester will be undertaken by ourselves.

2) What is the qualifying criterion for SBRR?

You occupy a property with a rateable value of up to £15,000 and it is the only property in England that you occupy except for properties that are disregarded.

3) What do you mean by properties that are disregarded?

The relief is only available to ratepayers who have either:

• one property, or
• one main property and other additional properties that have rateable values less than £2,200 and the total value of all the properties remains under £15,000

4) Does this mean I will receive SBRR on all the properties that are disregarded?

You will only receive relief on your one main property, the other additional properties that are disregarded will not receive SBRR and will pay the national supplement on their rate poundage.( see question 8)

5) I have one main property with a rateable value of £4,500 and also 3 car parking spaces with rateable values of £1,900, does this mean I still qualify?

Yes, because the rateable value of your car parking spaces are below £2,200 and your main property and the total values of your car parking spaces are still less than £15,000.

You will then be assessed for SBRR on your main property only (see questions 6 & 7 on how SBRR is calculated)

You will receive no relief on your 3 car parking spaces and you will be liable for the supplement on the rate poundage (see question 4)

6) How is the amount of reduction for SBRR calculated?

Firstly, if you occupy a property with a rateable value of up to £10,000 you will benefit from a percentage reduction in your rates liability of up to 50% and have your bill calculated by using the small non domestic rate multiplier.

Secondly, if you property has a rateable value between £10,000 and under £15,000 you will not receive a percentage reduction but will have your rates bill calculated by using the small non domestic rate multiplier only.

7) What is the small non domestic rate multiplier?

The small non domestic rate multiplier is used for businesses who qualify for SBRR. This is multiplied by the rateable value of your property and is less than the national non domestic rating multiplier.

8) What is the national non domestic rate multiplier?

The national non domestic rate multiplier is used for larger businesses over £15,000 rateable value and smaller businesses who do not qualify for SBRR (including disregarded properties (see question 3)

9) My property is below £10,000, what percentage reduction will I receive?

Provided, it is the only property in England that you occupy except for properties that are disregarded (please see question 3) then the reductions you will receive depending on the rateable value will be:

• 0% to properties with a rateable value of up to £5,000.
• For properties with rateable values between £5,000 and up to £10,000, the relief would decrease by 0.01% (approx) for each extra £1 in rateable value. In more simple terms this is equivalent to 5% (approx) per £500 of rateable value and 10% (approx) per £1,000 of rateable value.

Examples of the relief are shown in the table below:

RATEABLE VALUE   £	SBRR (APPROX)   %	SMALL BUSINESS NON DOMESTIC RATING MULTIPLIER
2,000	50	4
4,000	50	4
4,999	50	4
6,000	40	4
7,000	30	4
8,000	20	4
9,000	10	4
10,000	0	4
12,000	0	4
14,999	0	4

• You will also have your bill calculated using the small non domestic rate multiplier.

10) My property is between £10,000 and £15,000 rateable value, what benefit will I receive from SBRR?

Provided, it is the only property in England that you occupy except for properties that are disregarded (please see question 3)  you will then receive no rate relief to your account, but your bill will be calculated using the small business non domestic rate multiplier. (please see table in question 9)

11) I am a small business but do not qualify for SBRR because I occupy more than one property in England, do I then pay the small non domestic rate multiplier?

No, the small non domestic rate multiplier is only applicable to businesses who meet the criteria for SBRR. You will pay the national non domestic rate multiplier.

12) Can you top up this relief at your discretion?

No, there is no discretionary element to the scheme.

13) What happens if I qualify for SBRR but in future years my rateable value increases above the qualifying criteria?

We have the discretion to withdraw relief from the date your rateable value has increased.

14) I currently do not receive SBRR, because my rateable value is over £15,000. However, I have appealed against my rateable value, what happens if it is then reduced below £15,000?

You must apply to us first once you have been notified of your reduction in rateable value and if you then meet the qualifying criteria you will receive SBRR at the start of the following financial year. This includes any new properties and splits, mergers and re-organised properties.

15) I am thinking of appealing against my rateable value which could effect my application for SBRR in the future, who do I apply to?

The Valuation Office
Norroy House
Nuns Road
Chester
CH1 2NT

Tel 01244 580300

Valuation Office Website (external)

16) I am currently receiving rural rate relief, do I qualify for the SBRR as well?

No, you will continue receiving rural rate relief. However, if you receive discretionary rural rate relief only, it could be that you may qualify for SBRR, please contact us in order to discuss this (the contact details are in question 26)

17) I am currently receiving charitable relief; do I qualify for the SBRR as well?

No, you will receive charitable relief only.

18) I have failed to pay in accordance with my bill, will you withdraw the relief?

No, but you must ensure that you pay in accordance with your account. If you have any problems in paying you bill and also have had enforcement action taken against you then please contact us in order to try and sort this matter out.

19) If I receive SBRR, will the benefits of receiving the relief diminish over time due to offsetting increases in rent?

SBRR will be monitored by the Government to ensure it remains beneficial to small businesses over time.

20) Who will be funding SBRR?

Businesses who do not qualify for SBRR will pay the higher multiplier to fund SBRR (see question 8)

21) Does that mean Council Tax payers will not have to pay for SBRR?

Yes.

22) What is the procedure for applying for the SBBR?

You must contact us and we will send you an application form. You then must complete it and return it back to the Council.

We will then consider your application and we will let you know the level of relief you qualify for and amend your business rate account accordingly.

23) How long do I have to apply?

You may apply for relief at the start of the year or up to 6 months after the year concerned.

24) Will I then receive SBRR every year?

Yes, provided your circumstances have not changed. However, you must apply to us for each Valuation Period in order to continue receiving relief.

A Valuation Period is the period for which a Local Non Domestic Rating List remains in force (which is every 5 years) The current Valuation Period is 2005, the next one will be 2010 and every 5 years thereafter.

The Government may review SBRR at any time in the future and we will write to you if there are any changes that affect your account.

If there are any changes to your circumstances that might effect your relief, then you must contact us straight away.

25) Should I continue paying my rates bill until I hear from you regarding my application for SBRR?

Yes, you must pay in accordance with your rates bill until we notify you otherwise.

26) Where do I contact you at?

You can either write or contact us at the following address:

Business Rates
Chester City Council
The Forum
Chester
CH1 2HS

Phone  01244 402472

E-mail ndr@chester.gov.uk.