The Non-Domestic Rating (Small Business Rate Relief) (England) Regulations 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

Schedule 4ZA to the Local Government Finance Act 1988 provides that small business rate relief is available to ratepayers when conditions prescribed by the Secretary of State in regulations are satisfied.

Regulation 2 provides that small business rate relief is available where two conditions are met. First, the hereditament concerned must have a rateable value of not more than £15,000. Any improvement relief available in accordance with paragraph 3 of Schedule 4ZA will be taken into account when determining the hereditament’s rateable value. Second, the ratepayer must occupy only one hereditament in England (subject to the provision on hereditaments to be disregarded for these purposes in regulation 2(2)).

The amount of relief is determined in accordance with the formula in paragraph 4(1)(a) of Schedule 4ZA. Item E in that formula is also prescribed in regulations by the Secretary of State.

Regulation 3 prescribes the amount of E for hereditaments with a rateable value of not more than £12,000 and prescribes how to calculate E for hereditaments with a rateable value of more than £12,000 but not more than £15,000.

The provisions relating to small business rate relief in the Non-Domestic Rating (Reliefs, Thresholds and Amendment) (England) Order 2017 (S.I. 2017/102) are revoked by regulation 4 of these Regulations but will continue to have effect in relation to chargeable days falling prior to 1st April 2024 (when these Regulations come into force).

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.