Small Business Bonus Scheme

Small businesses in the Highlands are being encouraged to take advantage of a new rates relief scheme introduced by the Scottish Government, which takes effect from Monday 1 April.

Letters are being sent to 8,900 Highland businesses advising them of the introduction of the Small Business Bonus Scheme, which replaces the Small Business Rates Relief Scheme.

Enclosed in each letter is an application form for the new bonus scheme.

Due to the introduction of the new scheme, all Small Business Rates Relief Entitlement has been cancelled with effect from 1 April.   Any business that believes it is entitled to relief under the new scheme is being advised that it must complete and return a new application form.

The new scheme will extend the levels of relief currently awarded under Small Business Rates Relief and will, from 1 April, progressively reduce the rates burden for businesses with properties with a combined rateable value of  £15,000 or less.

Projected levels of relief for the next three years are detailed below. It is the Scottish Government’s intention to deliver the scheme in full by April 2009.

Combined rateable value of all business properties in Scotland Percentage relief available, subject to eligibility
                                                    2008/09 2009/10 2010/09
Up to £8,000                                  80%        100%     100%
£8,001 to £10,000                          40%          50%       50%
£10,001 to £15,000                        20%           25%       25%

The level of relief for each business will depend on:

(1) the combined rateable value of all properties in Scotland of which the business is in rateable occupation or (if vacant) which the business is entitled to occupy;

(2)  whether or not each property is eligible for one of the existing rates relief schemes;                          

 (3) the level of other public sector assistance received by the business.