Question

Am I eligible for small business rates relief on my new shop?

18 views

I have just signed the lease on a small retail unit in Hackney to sell my prints and stationery, and the rateable value on the listing is £13,500. The previous tenant mentioned small business rates relief, but I am not sure whether I qualify or how to apply.

Is the relief automatic, or do I need to apply through the council? I only occupy this one property – does that matter? And roughly how much could the bill be reduced by?

I would like to budget properly before the first bill lands.

1 Answer

Short answer: yes, you very likely qualify — and at a rateable value of £13,500, the relief is generous.

How Small Business Rate Relief works

Small Business Rate Relief applies in England to properties with a rateable value below £15,000. If the rateable value is £12,000 or less, you pay no business rates at all; between £12,001 and £15,000 the relief tapers on a sliding scale. GOV.UK's own example uses almost exactly your figures: a rateable value of £13,500 gives 50% off your bill. So you'd expect roughly half the standard rates bill — well worth having.

Conditions to watch

The main condition is that it's your only property — which it is. If you later take on a second property, you can generally keep the relief as long as each additional property has a rateable value of no more than £2,899 and the combined rateable value of all your properties stays below £28,000 in London (£20,000 elsewhere). Since this is your only premises, you're comfortably inside the rules.

It's not automatic — apply to your council

The relief isn't applied automatically. You need to contact Hackney Council, which administers business rates for the area, and apply — if you don't ask, you don't get it. You'll need your rates bill reference and the property details. Check your bill against the current rating list: relief is calculated on the rateable value in force, so make sure the £13,500 figure is from the current list. Apply promptly, because relief is usually only backdated so far.

One more thing to check while you're at it: as a new shop, ask the council whether any other local reliefs apply to you — but Small Business Rate Relief is the main one, and at 50% off it makes a real difference to your overheads.

Bottom line

  • £13,500 rateable value → qualifies, roughly 50% off your rates bill.
  • Only property → inside the single-property condition.
  • Apply to Hackney Council — the relief is not automatic.

Your answer

Log in to add your answer to this discussion.