Rate reliefs and exemptions

Small Business Rate Relief

From 1 April 2005 the Government introduced a new rate relief scheme to help small businesses.

From 1 April 2017, an eligible ratepayer will pay no rates on properties with rateable values up to 拢12,000, declining in percentage terms on a sliding scale until it is 0% at 拢15,000.

Generally, the relief is only available to ratepayers who are not entitled to another mandatory relief and occupy either:

  • one property; or
  • one main property and other additional properties with rateable values of less than 拢2,900 and a combined rateable value limit of 拢20,000 (The additional properties cannot qualify for this relief)

If your property has a rateable value below 拢51,000 your bill will be calculated by the small business multiplier as opposed to the standard multiplier.

Full details can be obtained from the Business Rates section.

What you need to do

If you already claim small business rate relief, you do not need to do anything else at this stage.

If you continue to meet the conditions for small business rate relief (which apply at the time, to the property and the ratepayer) you'll automatically continue to receive this in each new valuation period.

If you think you meet the criteria, but have not applied, you can download the small business application form.

Unoccupied properties

If a business property is unoccupied, full business rates are usually still charged. These are waived for the first three months after a property becomes empty. For certain industrial properties, this is extended to six months. After this period, the 'person entitled to possession' becomes liable for the full charge.

There are a number of exemptions, including: 

  • Listed buildings
  • Properties with a rateable value of less than 拢2,900
  • Properties owned by a charity and when next in use will be occupied by a charity

Partly unoccupied properties:

A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is only partly occupied for a short time, we have the discretion in certain cases to award relief in respect of the unoccupied part.

What you need to do

Ratepayers must notify the council immediately when a property becomes vacant.

Charity and other organisations

Charities and registered Community Amateur Sports Clubs (CASCS) are entitled to 80% mandatory rate relief when the property is occupied by the charity or club and is wholly or mainly used for charitable or club purposes.

We have discretion to give further rate relief on the remaining bill and give relief to non-profit making organisations.

What you need to do

If you think you meet the criteria, but have not applied, you can download the charitable rate relief application form.

Local discounts

Local Authorities have a general power to grant discretionary local discounts.

For full details please contact the Business Rates Team on telephone 0191 4244 299 or email nndr@southtyneside.gov.uk

Exempt properties

Some properties are exempt from Business rates. The District Valuer will not include an exempt property in the Valuation List.

Exempt properties include:

  • Agricultural land and buildings
  • Fish farms
  • Places of religious worship
  • Trinity House property (e.g. lighthouses, buoys and beacons)
  • Sewers and accessories
  • Property of Drainage Authorities
  • Parks
  • Property used for the disabled
  • Air raid protection works
  • Swinging Moorings
  • Road crossings over watercourses
  • Property in Enterprise Zones

All of the above are stated in broad terms. Within each of the classes a number of conditions may need to be met before the exemption is satisfied.

If you need further details about any of these classes, please contact the local authority. Appeals against an entry in the list should be made to the District Valuer.

兔子先生ing Small Business Relief (SSBR)

This scheme will cap bill increases at 拢600 per year for any business losing eligibility for some or all Small Business Rate Relief or Rural Rate Relief at the 2023 revaluation, and will run from 2023 / 24 to 2025 / 26.

For those ratepayers receiving 2017 SSB relief in 2022 / 23, any eligibility for 2023 SSBR will end on 31 March 2024.

Properties with a rateable value of 拢51,000 or more will not pay the additional 1.3p higher multiplier, if eligible for 2023 SSB.

Transitional relief

As a result of the 2023 revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.

Transitional relief schemes are introduced at each revaluation to help those facing increases.

The scheme will restrict 2024 bill increases to:

  • 10% for businesses with small properties (up to and including 拢20,000 rateable value)
  • 25% for medium properties (up to and including 拢100,000 rateable value).
  • 40% for large properties (over 拢100,000 rateable value).

Transitional relief is applied automatically to bills.

Further information about transitional arrangements may be obtained from the local authority or at .

Retail, hospitality and leisure relief

This relief is to support the businesses that make our high streets and town centres a success and help them to evolve and adapt to changing consumer demands.

The scheme will provide eligible, occupied, retail, hospitality and leisure properties with a 75% relief, up to a cash cap limit of 拢110,000 per business.

The scheme has been extended and will apply for the 2024 / 25 financial year.

Relief for Local Newspapers

The Government is providing funding to local authorities so that they can provide a discount worth up to 拢1,500 a year on office space occupied by local newspapers.

This was due to run for 2 years from 1 April 2017. At Autumn Budget 2018, the Government extended the scheme for an additional year (2019/20).  This scheme provides up to a maximum of one discount per local newspaper title and per hereditament, and up to state aid limits.

The Government has announced an extension of the 拢1,500 business rates discount for office space occupied by local newspapers for an additional 5 years until 31 March 2025.

Heat networks relief

You can get 100% heat networks relief if your property is only used or mainly used as a 'heat network'.

A heat network supplies heating or cooling to other properties from a central source.

To be eligible, the heat network must:

  • take its energy from a low carbon source
  • supply heating and cooling to other properties - for example, homes, shops, public buildings, hospitals and offices

The heat network must not supply heat or cooling for industrial use, for example, to create products in factories.

Improvement relief

If you make certain improvements to your property which are completed after 1 April 2024, you may get relief from higher business rates bills.

You do not need to apply.

If you meet the necessary requirements, the relief will be applied to your bills for up to 12 months from the date the improvement works were completed.

You can find out more about which improvements are eligible at .

If you have questions about a certificate of qualifying works, please contact the Valuation Office Agency at the email address on your certificate.  

Other reliefs

Please contact the Business Rates team for further information regarding other reliefs that may be available, on 0191 424 4299 or email nndr@southtyneside.gov.uk.