Business Rates Relief; Small Business Bonus Scheme

In the first of these, we will consider Small Business Bonus Scheme (SBBS).

This Scheme can eliminate or substantially reduce the tax, i.e. business rates, due to be paid. Business rates are also known as non-domestic rates.

The SBBS is provided by the Scottish Government and administered by Scotland's various local councils. The Scheme offers rates relief on business premises in Scotland which have a combined rateable value of less than £35,000. The Scheme is intended to assist small businesses in Scotland who experience a hefty rates bill as a high proportion of their turnover.

It is not simply a ‘rubber-stamping’ exercise, eligibility requires to be established by the Council. There are also clear restrictions. For example, businesses with a combined rateable value that exceeds £35,000 are ineligible for the Scheme

The Benefits

2016-17

Based on the total rateable value (RV) of all your business premises, the following Reliefs are available up to 31 March 2016:

Furthermore, if you have more than one business premises and have an aggregate of RV’s between £18,001 and £35,000, you rea entitled to 25% relief on each individual property with an RV under £18,000.

2017-18

Based on the aggregate RV of all your business premises, the following reliefs are proposed from 2017/18:

 The 50% relief banding available in 2016/2017 is being removed from 2017/18.

However, as existing, if you have more than one business premises and have an aggregate of RV’s between £18,001 and £35,000, you are entitled to 25% relief on each individual property with an RV under £18,000.

Based on those proposed values, you can therefore save a maximum of £6,990 in 2017-18.

Please note, SBBS is administered differently in England, Wales and Northern Ireland. If you require information on premises there you should visit GOV.UK's rates relief for small businesses for further information.