The following section covers the automatic payment of Small Business Rate Relief (SBRR) multipliers for 2012-13 and eligibility for through the small business non-domestic multiplier. This only applies to England. The FSB has lobbied extremely hard to ensure the automatic payment of small business rate relief.
We are also continuing to lobby the Chancellor to ensure that the small business rate relief holiday allows small businesses in London with a rateable value of up to £17,000 to be included.
1. Automatic Payment of SBRR
SBRR will be paid automatically to eligible ratepayers. They will no longer have to apply to their local council. Qualification for SBRR has not changed. It applies to ratepayers with one property with a rateable value (RV) of not more than £12,000 and other subsidiary properties each with a RV of not more than £2,600 provided the total RV of the main property and subsidiary properties does not exceed £11,999.
The temporary increase in SBRR has been extended to the end of March 2013. Eligible ratepayers will continue to receive relief at 100% on properties with a RV not more than £6,000 with a tapered relief of between 100% and 0% on properties with RVs between £6,001 and £12,000.
2. Multipliers for 2012-13
Based on last September's Retail Price Index (RPI) of 5.6%, the small business rating multiplier for 2012-13 will be increased to 45.0p from the 42.6p for the current year.
The non-domestic rating multiplier will be 45.8p. This is the small business rating multiplier plus an adjustment of 0.8p to fund the estimated cost of the SBRR scheme. The rise in the non-domestic multiplier is 5.77% compared with the rise in RPI of 5.6%
3. Properties Eligible for the Small Business Non-Domestic Multiplier
Except for properties eligible for SBRR and other reliefs, The Department for Communities and Local Government is removing the existing criteria, which requires that ratepayers occupy only one property (hereditament) in order to be eligible to have their liability calculated by reference to the small business multiplier. So all properties outside London with an RV below £18,000 and inside London with an RV below £25,500 will have their rates bills calculated using the small business multiplier irrespective of how many such properties a ratepayer owns or occupies. This will apply to all hereditaments such as advertising hoardings and telecomms masts. This change does not apply to empty properties.
An interesting impact of the forthcoming changes in the multipliers is that some property owners/occupiers will not see their rates bills rise as much as all the other ratepayers.
Those eligible for SBRR face a rise of 5.6% (42.6p to 45.0p) . Those with properties with a RV of £18,000 and over outside London, and a RV of £25,500 and over inside London face a 5.77% rise (43.3p to 45.8p).
But those ratepayers with properties outside London below the £18,000 threshold and inside London below £25,500 and not eligible for SBRR face a rise of only 3.9%, 43.3p to 45.0p. This is because all these properties will only be charged at the small business multiplier as opposed to the full non-domestic business previously