The Government's new Small Business Rate Relief scheme will come into effect from 1 April 2005.

The new scheme will see 50% rate relief available for business properties with a rateable value of below £5,000.

The relief will decrease on a sliding scale of 1% for every £100 of rateable value over £5,000, up to £9,999.

The relief is available to ratepayers with more than one property, providing the additional properties do not have individual rateable values of more than £2,200, and the combined rateable value of all of the properties is under £15,000 (£21,500 in London).

There are also provisions for a so-called 'buffer zone', with eligible businesses with rateable values of between £10,000 and £14,999 (between £10,000 and £21,499 in London) having their liability calculated using the small business multiplier.

Applications for the relief must be submitted to the appropriate local authority within six months of the end of the financial year to which it relates. Businesses must re-apply for the relief each year, and they must be eligible on 1 April of each year.