Savings for small businesses
Small businesses are vital to the Scottish economy, and the Scottish Government understands how important it is to support them. The Small Business Bonus Scheme (SBBS) is one way the government accomplishes this. In this article, we’ll look at the SBBS, how it works, and who is eligible to apply.
What is the Small Business Bonus Scheme?
The Small Business Bonus Scheme (SBBS) is a Scottish Government initiative that provides small businesses in Scotland with rate relief. Businesses must pay business rates based on the value of the property in which they operate. The SBBS is designed to help small businesses by lowering or eliminating this property tax, allowing them to reinvest the savings in their operations.
How does the SBBS work?
The SBBS allows eligible businesses to receive up to 100% rate relief on their business rates. The amount of relief available to a business is determined by the Rateable Value of their property. The relief is calculated on a graduated scale, with qualifying businesses with a Rateable Value of less than £12,000 receiving 100% relief. The scheme also provides relief for businesses with rateable values ranging from £12,001 to £20,000 with relief decreasing as the Rateable Value approaches £20,000.
Who can apply for the SBBS?
A business must meet the following criteria to be eligible for the SBBS:
- The company must be based in Scotland.
- The company can only have one property.
- The property’s Rateable Value must be £20,000 or less.
Certain types of businesses are not eligible for the SBBS, including:
- Properties that are vacant or only used for storage.
- Properties used for gambling or wagering.
How to apply for the SBBS
Businesses that meet the SBBS eligibility criteria will need to apply to the relevant local authority.
