Key Facts

BUSINESS RATE REVALUATION 2010 - Key facts

  • The 2010-11 poundage of 40.7p, announced on November 26 is 15 per cent lower than 2009-10 and the lowest national poundage ever set.
  • Estimated £220m benefit of matching English poundage of 40.7p - spread equally this is an average benefit of £1,000 per property.
  • Around 60 per cent of business will be immediately better off as a result of revaluation (and that is before appeals and reliefs reduce bills further) with an average saving of over £1,320. In England, where they have a transitional relief scheme the average saving is £770 - almost half that in Scotland.
  • And this is all before appeals and reliefs - which will lower bills further.
  • Half of all businesses in Scotland will receive a business rate discount as part of a £2.4 billion relief package (over the next five years).
  • Average bill of a small and medium sized enterprise or high street business will go down by almost £300 as a result of revaluation (before relief or appeals are applied).
  • Such a scheme would mean bills for high street businesses and small and medium enterprises were £70m higher than they would have otherwise been.
  • A Scottish business can save up to £3,400 more in 2010-11 under the Small Business Bonus Scheme than under to the equivalent scheme in England.
  • Expansion of Small Business Bonus Scheme will offer assistance to an additional 3,600 properties, which form part of small chains.

Business Rate Relief - new thresholds

New large business supplement threshold

New Small Business Bonus Scheme (SBBS) thresholds

Thresholds increased to keep the same number of properties in the scheme.

Thresholds by rateable value (rv) (£)

2009-10

Current threshold

2010-11

2011-12

2012-13

New threshold

100% relief

£8,000

£10,000

50% relief

£10,000

£12,000

25%

£15,000

£18,000

Upper limit for cumulative (rv)*

£15,000

£25,000



*This will allow a business with two or more properties with a cumulative rateable value of under £25,000 to qualify for relief at 25 per cent for properties with a rateable value less than £18,000.

Expansion of Small Business Bonus Scheme

Over and above the rise in thresholds, the Small Business Bonus Scheme will be expanded to include 3,600 properties in small chains which do not currently qualify.

Businesses with multiple properties whose cumulative rateable value is £25,000 or less will be eligible for relief of 25 per cent for each property with a rateable value of less than £18,000.

New rural rate relief thresholds

This relief offers support to key services in rural communities and thresholds will be uplifted from April 1.

Thresholds by £ rateable value

Current Thresholds

2009-10

2010-11, 2011-12 and 2012-13 Thresholds

Sole shop, general store or post office

£7,000

£8,500

Sole petrol filling station, hotel or pub

£10,500

£12,750

Cap for discretionary relief

£14,000

£17,000



Renewable energy relief

A new targeted relief for renewable energy producers will be introduced from April 1, 2010. It will offer discounts of up to 100 per cent to support the central role of renewable energy producers in the climate change agenda and to promote expansion of the sector. This relief will operate under State aid de minimis.

Thresholds by £ rateable value

Percentage relief (%)

up to £145k

100

up to £430k

50

between £430k and £860k

25

between £860k and £4m

10

greater than £4m

2.5



Page updated: Monday, October 15, 2012