Local government finance circular 5/2024: non-domestic rates relief guidance

Annex D - Small business bonus scheme worked examples

Note: These worked examples do not include interactions with transitional relief schemes which are covered in the Transitional Relief Worked Examples.

Example 1

Ratepayer is liable for rates on one property.

RV in 2024-25 is £10,000.

Gross liability = 10,000 x 0.498 = £4,980.

As the rateable value is less than £12,000, then 100% relief is awarded.

Bill in 2024-25 = £0

Example 2

Ratepayer is liable for rates on one property.

RV in 2024-25 is £14,000.

Gross liability = £14,000 x 0.498 = £6,972

As the rateable value is between £12,001 and £15,000, then relief percentage is calculated according to the following formula: 100 – (75 x (1 - (15000 - RV)3000 ))

Relief percentage = 100 – (75 x (1 - (15000 - 14000)3000 ))

Relief percentage = 100 – (75 x (1 – 0.33333…))

Relief percentage = 100 – 50

Relief percentage = 50

£6,972 x 50% = £3,486

Bill in 2024-25 = £6,972 - £3,486 = £3,486

Example 3

Ratepayer is liable for rates on one property.

RV in 2024-25 is £16,000.

Gross liability = £16,000 x 0.498 = £7,968

As the rateable value is greater than £15,000, then the relief percentage is calculated according to the following formula: 25 x ((20000 - RV)5000 )

Relief percentage = 25 x ((20000 - 16000)5000 )

Relief percentage = 25 x 0.8

Relief percentage = 20%

£7,968 x 20% = £1,593.60

Bill in 2024-25 = £7,968 – £1,593.60 = £6,374.40

Example 4

Ratepayer is liable for rates on one property.

RV in 2024-25 is £25,000.

Gross liability = 25,000 x 0.498 = £12,450.

As the rateable value is greater than £20,000, no relief is awarded.

Bill in 2024-25 = £12,450.

Example 5

Ratepayer is liable for rates on more than one property, but the cumulative rateable value does not exceed £12,000.

RV for the individual property in 2024-25 is £10,000.

Gross liability = 10,000 x 0.498 = £4,980.

As the cumulative rateable value is less than £12,000, then 100% relief is awarded.

Bill in 2024-25 = £0.

Example 6

Ratepayer is liable for rates on more than one property, and the cumulative rateable value exceeds £12,000, but does not exceed £35,000.

RV for the individual property in 2024-25 is £14,000.

Gross liability = £14,000 x 0.498 = £6,972

As the cumulative rateable value is between £12,001 and £35,000 and the individual rateable value does not exceed £15,000, 25% relief is awarded.

£6,972 x 25% = £1,743

Bill in 2024-25 = £6,972 - £1,743 = £5,229

Example 7

Ratepayer is liable for rates on more than one property, and the cumulative rateable value exceeds £12,000, but does not exceed £35,000.

RV in 2024-25 is £16,000.

Gross liability = £16,000 x 0.498 = £7,968

As the rateable value is between £15,001 and £20,000, then the relief percentage is calculated according to the following formula: 25 x ((20000 - RV)5000 )

Relief percentage = 25 x ((20000 - 16000)5000 )

Relief percentage = 25 x 0.8

Relief percentage = 20%

£7,968 x 20% = £1,593.60

Bill in 2024-25 = £7,968 – £1,593.60 = £6,374.40

Example 8

Ratepayer is liable for rates on more than one property, and the cumulative rateable value is greater than £35,000.

RV in 2024-25 is £10,000.

Gross liability = 10,000 x 0.498 = £4,980.

As the cumulative rateable value is greater than £35,000, then no relief is awarded.

Bill in 2024-25 = £4,980.