Businesses who occupy only one property with a rateable value of less than £18,000 (or £25,500 in London) are eligible for small business rate relief, which reduces your liability to business rates.

Typically businesses can claim up to 50% rates relief, however in October 2010 a temporary scheme was introduced allowing businesses to claim up to 100% relief, meaning many small businesses are currently paying no rates at all. The scheme was originally intended to last for one year only but was extended in the last budget, and will now continue until at least 30 September 2012.

If your rateable value is £6,000 or less you are entitled to the full relief of 50% (or 100% under the current scheme). For properties with a rateable value between £6,000 and £11,999, relief is applied on a sliding scale from 50% (or 100%) down to 0%. So a property with a rateable value of £9,000 would qualify for relief of 25% – or 50% under the current scheme.

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It is usually necessary to apply for small business rates relief and as a result many businesses miss out on hundreds or even thousands of pounds of relief per year. When your annual rates bill arrives it should be checked for correctness, and a form is usually enclosed which can be completed and returned if your business qualifies for rates relief.

If you think you qualify for small business rates relief and have not received an application form, contact your local authority for more information.

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