What reliefs are available?
In certain circumstances reliefs are available to reduce your
business rates bill. If you think that you may be entitled to any
of the reliefs listed please download an application form using the
link at the bottom of the page under Related Documents. If you need
any further information please contact the Business Rate section
using the link below.
Small business rate relief
Businesses which occupy properties with a rateable value of
£5000 or less may receive 50% relief on their overall bill. This
relief decreases on a sliding scale by 1% for every £100 of
rateable values between £5000 and £10000.
Any properties with rateable values between £10000 and £14999
will also be eligible for the relief but will only be rated using
the small business multiplier 0.458 rather than having a percentage
decrease.
Small business rate relief is only available to businesses
which:
- Occupy one property with a rateable value under £15000
- Or
- Occupy one main property and any other additional properties,
providing the additional properties have rateable values of less
than £2200 and the total of all the rateable values do not add up
to more than £15000.
Also, the property for which you claim relief must be in the
rating list at April 1st of that particular financial year. If it
is not then you must wait until the following year before relief
can be granted.
Please note empty properties are not eligible for small business
rate relief.
Empty Property Relief
Recent Government proposals to modernise this form of rate
relief aim to provide strong incentives to bring vacant premises
back into use by removing these reductions to the business rates
bill.
The main change is to amend the Local Government Finance Act
1988, to increase the empty property rate from 50% to 100% of the
basic occupied business rate, after initial exempt periods have
elapsed. For most properties, excluding industrial, the exempt
period is three months. For industrial properties, the exempt
period is six months. The change is intended to encourage owners to
re-let, re-develop or sell empty non domestic buildings.
The six-month exempt period for industrial properties begins
with the day of vacation and not when this legislation comes into
effect. So the 'owner' of a factory or warehouse that was already
vacant for six months by 1 April 2008 will have to pay 100% of the
business rate immediately.
For these purposes, 'owner' means the person or body entitled to
occupy.
There are some exceptions to this. The following will not have
to pay empty rate:
Properties owned by Charities or Community Amateur Sports
Clubs
- Listed Buildings
- Properties with rateable values below £2200
- Unused land which has no buildings on it
- Property kept vacant because of action by the Crown or any
local or public authority with a view to prohibiting occupation of
the property or to acquiring it.
- The owner is prohibited by law from occupying the property or
allowing it to be occupied
- The owner is entitled to possession only as the personal
representative of a deceased person.
- The owner is bankrupt
- The owner is a company in administration.
- The owner is entitled to possession in his capacity as
liquidator of a company.
Charitable Bodies
A registered charity occupying a property for charitable
purposes is entitled to a reduction of 80% on its business rates
bill. Other non-profit organisations whilst not registered
charities may also qualify for this reduction. These include:
Church commissioners, voluntary schools and certain universities
and colleges.
In addition some sports clubs are eligible for mandatory rate
relief. If you are a registered C.A.S.C (community amateur sports
club) you can apply for charitable relief. For more information
regarding C.A.S.C's please see the official website in related
links below.
Discretionary Rate relief
The Council has discretion to award rate relief to other bodies
for example sports clubs or leisure groups in its area, which are
set up as non profit making but which are not charities. Local
authorities also have the discretion to top up mandatory charitable
and rural relief to a maximum of 100%. Each application is
considered on its merit.
Rural rate relief
To Qualify for 50% mandatory rate relief under
the rural rate relief scheme, the property must:
- be within the boundaries of a qualifying settlement.
- have a rateable value of not more than £8500 if it is a general
store, qualifying food store or post office
- have a rateable value of not more than £12500 if it is a public
house or petrol filling station
- be used, in whole or part, as a petrol filling station, public
house, general store or the only post office, or both
- be the only petrol filling station, the
only public house, the only
general store or the only post office in the
settlement.
It is possible for both a General Store and a Post Office in the
settlement to qualify for mandatory rate relief, provided that both
meet the criteria.
General Stores/Qualifying Food Stores
To qualify for mandatory relief, a general store must be one in
which there is carried on a trade or business consisting wholly or
mainly of the sale, by retail, of both food for human consumption
(excluding confectionary) and general household goods. A qualifying
food store must also be carrying on a trade or business consisting
wholly or mainly of the sale, by retail, of both food for human
consumption (excluding confectionery and excluding the supply of
food in the course of catering).
Note : The supply of food in the course of catering
includes-
- Any supply of food for consumption on the premises on which it
is supplied
- Any supply of hot food for consumption off those premises
The Council is required to satisfy itself as to which, if any,
of the businesses in the settlement are general stores within the
meaning of the Local Government and Rating Act 1997. A general
store will only qualify as such for mandatory relief if it is the
only such store within the boundaries of the
settlement.
Where there are two general stores within the settlement,
neither can qualify for mandatory relief on that basis, although if
either functions as a post office, relief may be claimed
independently on that ground.
Stores that sell confectionery as well as food and
household goods
"Excluding confectionery" simply means that confectionery does
not count as food for the purpose of deciding whether a shop is a
general store. A store must wholly or mainly sell other types of
food and household goods to be able to qualify for mandatory
relief.
Public House
means premises for which an appropriate licence under the
relevant Licensing Act is in force.
Petrol Filling Station
means premises where petrol or other automotive fuels are sold
retail to the general public for fuelling motor vehicles intended
or adapted for use on roads.
Eligibility for consideration for discretionary rate
relief
The Council may allow relief to any general store and/or post
office which qualifies for mandatory relief. They may also grant
rate relief to any rural business provided that it:
- is within the boundaries of a qualifying settlement
- has a rateable value of not more than £16500
- is used for purposes which are of benefit to the local
community
- is reasonable for the authority to make such a decision having
regard to the interests of persons liable to pay the Council Tax
set by it
Hardship Relief
The Council has the power to reduce the amount of business rates
payable where it is satisfied that
- the ratepayer would suffer hardship if the Council did not do
so; and
- it is reasonable to award a reduction taking into account the
interest of the local Council Tax payers.
This reduction is at the discretion of the Council and each
application is looked at on its own merits. If you would like more
information please phone the business rate section using the
related link below.