The Scottish Government has announced the introduction of a rates relief scheme in Scotland. On 1st April 2008, the Small Business Bonus Scheme will replace the existing Small Business Rates Relief.
The Small Business Bonus Scheme will progressively reduce the rates burden for ratepayers with properties (whether occupied or not) of which the combined total rateable value is £15,000 or less. The scheme will be fully-operational by April 2009, and the amount of relief awarded in each of the next three years is shown below. The amount of relief awarded will depend on the combined rateable value of ALL properties in Scotland which a ratepayer is in occupation or (if vacant) which the ratepayer is entitled to occupy.
The table below displays entitlement to a reduction under the Small Business Bonues Scheme by rateable value ‘bands’.
Combined rateable value of ALL premises |
Percentage of relief available |
||
2008-09 |
2009-10 |
2010-11 |
|
|
Up to £8,000 |
80% |
100% |
100% |
|
£8,001 to £10,000 |
40% |
50% |
50% |
|
£10,001 to £15,000 |
20% |
25% |
25% |
To illustrate the operation of the Small Business Bonus Scheme, two example are shown below:
Example One - Single Premises
A ratepayer occupies a single property in Scotland with a rateable value of £3,600.
There is an entitlement in 2008-09 to an award of 80% relief. The amount of rates payable is therefore reduced from £1,648.80 (£3,600 x £0.458) to £329.76 (£3,600 x £0.458 x 20%).
Example Two - Multiple Premises
A ratepayer occupies two properties in Scotland. One property has a rateable value of £2,000. The other property has a rateable value of £7,750. The cumulative rateable value of the premises occupied by this ratepayer is £9,750.
There is an entitlement to an award of 40% relief. The total amount of rates payable is therefore reduced from £4,465.50 (£9,750 x £0.458) to £2,679.30 (£9,750 x £0.458 x 60%).
It is intended by the Scottish Government that the Small Business Rate Relief scheme should be financed by a levy on businesses occupying a property with a rateable value exceeding £29,000. The Scottish Government announced that in 2008-09 the levy will be 0.4 pence. For example, a ratepayer occupying a property with a rateable value of £175,000 will contribute £700 to the funding of the Small Business Rates Relief scheme.
Entitlement to a reduction under the Small Business Bonues Scheme is calculated on receipt of an application form. Once it has been calculated, it will be shown on your Non-Domestic Rates bill.
If you think you might be entitled claim a reduction under the terms of the The Small Business Bonus Scheme and would like
to apply, you may download an application form by clicking here. 
If you currently pay Non-Domestic Rates to the Moray Council and you would like to ask a question about the Small Business Bonus Scheme, please e-mail the Moray Council's Non Domestic Rates Team.