Business rates changes 2017/18
There were a number of changes to the business rates scheme in April 2017. These may have affected the amount of business rates you are charged.
Rateable value revaluation
Business rates are based on the rateable value of your business property. This is an estimate of the open market rental value of a property on a particular date. Rateable values are reviewed periodically to take account of changes in the property market. The latest revaluation took effect from 1 April 2017. It used the amounts properties could have been rented for on 1 April 2015. Some rateable values in the borough have increased and others have reduced.
The review of rateable values was carried out by the Valuation Office Agency. Your new rateable value is shown on your business rates bill. If you disagree the decision you can appeal to the Valuation Office Agency..
Business rates are worked out by multiplying your property's rateable value by a figure set by the government. Smaller properties have a lower multiplier figure. The multiplier figures and threshold for what is classed as a smaller property changed from 1 April 2017 as follows:
|£0 to £17,999||48.4 pence in the pound|
|£18,000 and above||49.7 pence in the pound|
|£0 to £50,999||46.6 pence in the pound|
|£51,000 and above||47.9 pence in the pound|
Help for businesses affected by the rateable value revaluation
Changes to rateable values and multipliers have affected the amounts of business rates many business are charged.
Big changes, either up or down, are phased in over a number of years. This is done by limiting the amount a business rates bill can change between one year and the next.
There are 3 discount schemes. You may be eligible for one or more of these depending on your circumstances:
- Transitional relief - a cap on how much a business rates bill can increase or decrease
- Supporting small businesses scheme - limits the amount your business rates can go up due to the loss of small business rates relief following an increase in rateable value
- Discretionary relief scheme - further help to certain businesses after transitional relief and supporting small business scheme have been applied
More information about these schemes can be found at Help with 2017 business rates changes.
Small business rates relief
Discounts on your business rates bill are available if your property is occupied and has a small rateable value. From 1 April 2017 the thresholds for small business rates relief increased as follows:
|Rateable values in 2016/2017||Rateable values in 2017/2018||Amount of small business rates relief|
|£6,000 or less||£12,000 or less||100%|
|£6,001 to £12,000||£12,001 to £15,000||Between 100% and 0% on a sliding scale - the larger the rateable value the smaller the amount of relief|
If your rateable value increased in April 2017, and you lost small business rates relief despite the increase in the thresholds then you may be entitled to help from the supporting small businesses scheme.
Pub relief scheme
A £1000 business rates discount is available for pubs with rateable values of less than £100,000. The discount is for 2017-18 and 2018-19 only.
More information can be found at pub relief scheme.