Transitional Relief - Small Business Bill Cap
1 April 2024
In the financial year 2024-24, the Small Business Transitional Relief Bill Cap is available for properties previously entitled to some reliefs but are no longer entitled to this relief following an increase in rateable value as a result of 2023 Revaluation or due to changes in the Small Business Bonus Scheme is increased to £1,200.
1 April 2023
The Small Business Transitional Relief Bill Cap is available for properties previously entitled to some reliefs but are no longer entitled to this relief following an increase in rateable value as a result of 2023 Revaluation or due to changes in the Small Business Bonus Scheme. The scheme will limit the increase in the amount payable for qualifying properties in 2023-24 at £600.
Qualification
A property will have the increase in the amount of its bill capped by the Small Business Transitional Relief Bill Cap if:
• it met the qualifying criterion for the General Revaluation Transitional Relief Scheme; and
• it was entitled at 31 March 2023 to Small Business Bonus Scheme relief (SBBS); or
• it was entitled at 31 March 2023 to Mandatory or Discretionary Rural Relief; and
• entitlement to the qualifying relief ended on 1 April 2023 due to a 2023 revaluation increase in the property’s 1 April 2023 rateable value; or
• exclusion from entitlement to the Small Business Bonus Scheme from 1 April 2023 due to the way the property is used.
Exclusion
Any non-2023 Revaluation rateable value increase is not within the scope of the Bill Cap.
Impact of Bill Cap
For any property which falls within the remit of the Small Business Transitional Relief Bill Cap, the maximum increase in the amount of rates that will be payable in 2023-24 will be £600.
Application
Any ratepayer who wants to apply for an award of relief under the Small Business Transitional Relief Bill Cap, will be required to complete an application form once they have received their 2023-24 non-domestic rates bill. The application form may be obtained by clicking here.
Worked Relief Example
Qualification
Property rateable value at 31 March 2023 is £10,000
Gross rates bill for 2022-23 of £4,980 (£10,000 x 49.8p). Net rates bill is £0 due to 100% SBBS award
Property rateable value at 1 April 2023 is £16,000
Gross rates bill for 2023-24 of £7,968 (£16,000 x 49.8p)
The Revaluation Transitional Relief limit to be applied is 12.5% (Small property, with a rateable value at 1 April 2023-24 up to £20,000)
The gross bill increase is £2,988 (which is a 60% increase)
Since the increase exceeds the applicable 12.5% limit, the limit applies. This limits the increase to £623 (£4,980 x 12.5% = £623) reducing the amount of rates payable in 2023-24 after Revaluation Transitional relief to £5,603 (£4,980 + £623).
The new rateable value means that entitlement to a 2023 Small Business Bonus Scheme award is reduced to 20% due to the taper. This means that the net bill is reduced to £4,482 (£5,603 x 20% = SBBS: £1,121).
Small Business Transitional Relief Bill Cap limits the net amount of rates payable by properties which have lost entitlement to a Small Business Bonus Scheme or Rural Relief Scheme award to £600. Since this cap amount is lower than the net rates payable of £4,482, the amount of this property’s 2023-24 rates bill is capped at £600.
Non-Qualification
Property rateable value at 31 March 2023 is £7,500
Gross rates bill for 2022-23 of £3,735 (£7,500 x 49.8p). Net rates bill is £0 due to 100% SBBS award
Property rateable value at 1 April 2023 is £12,500
Gross rates bill for 2023-24 of £6,225 (£12,500 x 49.8p)
The Revaluation Transitional Relief limit to be applied is 12.5% (Small property, with a rateable value at 1 April 2023-24 up to £20,000)
The gross bill increase is £2,490 (which is a 66.7% increase)
Since the increase exceeds the applicable 12.5% limit, the limit applies. This limits the increase to £467 (£3,735 x 12.5% = £467) reducing the amount of rates payable in 2023-24 after Revaluation Transitional Relief to £4,202 (£3,735 + £467).
The new rateable value means that entitlement to a 2023 Small Business Bonus Scheme award is reduced to 87.5% due to the taper. This means that the net bill is reduced to £525 (£4,202 x 87.5% = SBBS: £3,677).
Small Business Transitional Relief Bill Cap limits the increase in the net amount of rates payable by properties which have lost entitlement to a Small Business Bonus Scheme or Rural Relief Scheme award to £600. Since this cap amount is higher than the net rates payable of £525, there is no entitlement to relief.