Those reliefs below that are not automatically calculated will only require a relatively simple application form to be completed and returned to the Council.
- Transitional Relief (or Surcharge)
- Discretionary Business Rate Relief Scheme
- Small Business Rate Relief
- The Supporting Small Businesses Relief Scheme
- Property empty and unused
- Partly occupied property Relief
- Charitable and Discretionary Relief
- Rural Village Relief with population under 3000
- Hardship Relief
All rateable values are reassessed at a general revaluation. The 2017 revaluation takes effect from 1st April 2017. Revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others. Revaluation does not raise extra money for Government. Whilst the 2017 revaluation will not increase the amount of rates collected nationally, within this overall picture, over 7 out of 10 ratepayers will receive a reduction or no change in their bill and some ratepayers will see increases.The transitional arrangements are applied automatically and are shown on the front of your bill.
Central Government have provided this council with some additional funding for occupiers who have seen a substantial increase in rates payable, following the 2017 revaluation.
Our local discretionary rate relief scheme will limit increases for certain businesses suffering more than an 8% increase in business rates in 2017/18 compared to 2016/17
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
Please find below a guide to how much you might pay:
In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill.
Generally, this percentage reduction (relief) is only available to ratepayers who occupy either-
(a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.
The Government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that they will be allowed to keep that relief for a period of 12 months.
An application for Small Business Rate Relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact their local authority. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.
Certain changes in circumstances will need to be notified to the local authority by a ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are—
(a) the ratepayer taking up occupation of an additional property, and
(b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.
The Supporting Small Businesses Relief Scheme
The government has made funds available to local authorities to implement the supporting small businesses relief scheme, following the valuation office agency’s 2017 revaluation of non-domestic properties.
The supporting small businesses relief scheme is intended to help those ratepayers who have lost some or all of their small business rate relief (SBRR) as a result of the increase in their business property’s rateable value (RV) and have consequently had large increases in their 2017/18 business rates bills.
To support these ratepayers, the supporting small businesses relief scheme will ensure that the increase per year in the bills of these ratepayers is limited to the greater of either a percentage increase of 5%, 7.5%, 10%, 15% and 15% per year from 2017/18 to 2021/22 (all plus inflation), or an increase of £600 per year.
In the first year of the scheme, all ratepayers losing some or all of their SBRR will see a maximum increase in their bill of £600. The minimum increase will be £600 per year thereafter. This means that ratepayers who are currently paying nothing under SBRR and are losing all of their entitlement to relief (i.e. their property’s RV increased from £6,000 or less to more than £15,000) would eventually pay £3,000pa after 5 years under the scheme.
Ratepayers will remain in the supporting small businesses relief scheme for either 5 years or until the annual incremental increase in business rates reaches the amount they would have paid without the scheme.
Please note that any award is dependant on the ratepayer having not received more than €200,000 in State Aide over a rolling 3 year period. More information on State Aid Law can be found at - https://www.gov.uk/state-aid
A change of ratepayers will not affect eligibility for the relief, but eligibility will be lost if the property falls vacant or becomes occupied by a charity or community amateur sports club.
Those in the Supporting Small Businesses Relief scheme whose 2017 RV is £51,000 or more will not be liable to pay the supplement (1.3p) to fund SBRR while they are in the scheme.
From 1st April 2017 most property with a rateable value above 2,900 (previously 2,600) that has been empty for more than three months, or in the case of industrial property, for more than six months does not receive any relief and has to pay full business rates.
Empty properties with a rateable value below 2,900 (previously 2,600) do not have to pay these empty property rates.
Are there any exemptions to this charge?
After the initial three or six month rate free period expires, empty property will be liable for 100% of the basic occupied Business Rates unless:-
- It is held by a charity and appears likely to be next used for charitable purposes
- It is held by a community amateur sports club and appears to be next used for the purpose of the club
- The owner is prohibited by law from occupying the property
- The owner is prohibited by action taken by the Crown, or any other local or public authority from occupying the premises
- Listed buildings and ancient monuments
- The owner is entitled to possession only in his capacity as the personal representative of a deceased person
- Properties whose owner is a company which is subject to a winding-up order, a company in administration, or in liquidation
- Properties whose owner is subject to a bankruptcy order within the meaning of section 381(2) of the Insolvency Act 1986
If your property is not capable of beneficial occupation - for instance, if it is in poor condition and cannot be economically repaired - your Valuation Officer may judge that it should be taken out of the rating list altogether.
Please be aware, however, that if the state of your property is damaged for the purposes of avoiding rates, under new anti-avoidance legislation introduced by the Government your valuation officer will be required to disregard the change in the property’s state when assessing its rateable value.
So for instance, if the roof is removed from an empty property for the purpose of avoiding rates, it may be valued as if the roof had not been removed.
A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the local authority has discretion to award relief in respect of the unoccupied part.
Charities are entitled to relief from rates on any non-domestic property that is wholly or mainly used for charitable purposes. Relief is given at 80% of the bill. Local Councils have the discretion to give additional relief of up to 20% of the remaining bill.
Local Councils also have the discretion to give relief up to 100% for property occupied by certain non-profit making bodies.
Certain types of properties in a rural settlement with a population below 3,000 may be entitled to relief.
The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property has to be occupied.
An eligible ratepayer is entitled to relief at 50% of the full charge whilst the local authority also has discretion to give further relief on the remaining bill.
The 2016 Autumn Statement confirmed the doubling of rural rate relief from 50% to 100% from 1st April 2017. Local authorities will be expected to use their local discount powers to grant 100% rural rate relief to eligible ratepayers from 1st April 2017.