Small business relief update - April 2011
New legislation will mean that eligible ratepayers will receive further small business relief from 1 October 2010 to 30 September 2012. The legislation was introduced after the issue of the 2011/2012 annual rate bill.
There is no need to apply to or contact the council for this additional relief. The additional relief will be applied automatically to each ratepayer's account. An amended demand notice will be issued showing the new balance. Eligible ratepayers will receive relief at 100 per cent on properties with rateable values up to £6,000 with a tapered relief of between 99 per cent and 0 per cent for properties with rateable values between £6,001 and £12,000. The new levels of relief apply from 1 October 2010 to 30 September 2012. The eligibility criteria will remain the same, see the section below on Small business rate relief.
Unoccupied property rating
Unoccupied non-domestic properties may be liable for empty property rates. Rates are currently charged at 100 per cent of the full rate bill or of the transitional bill where the transitional arrangements apply.
Rates are charged at 100 per cent of the full rate. Liability begins after the property has been empty for three months, but industrial properties, such as workshops factories and warehouses, are exempt from empty property rates, for a maximum period of six months. Certain properties, such as those with a rateable value of less than £2,600 and listed buildings, receive and will continue to receive full exemption for an unlimited period.
Charitable and discretionary relief
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 per cent of the full rate bill or of the transitional bill where the transitional arrangements apply. The council has discretion to remit all or part of the remaining 20 per cent of a charity's bill on such property.
Registered community amateur sports clubs are also entitled to 80 per cent relief.
The council also has discretion to remit all or part of any rate bill in respect of property occupied by certain bodies not established or conducted for profit.
The council reviews entitlement to relief over two or three years. The next review is due before 2012/13 financial year.
Rural rate relief
The occupier of a general store or post office in a settlement appearing in a council's rural settlement list is entitled to rate relief if it is the only such a store or post office in that settlement and its rateable value is £8,500 or less.
A sole petrol filling station or public house rateable value should be less than £12,500. Relief is given at 50 per cent of the full rates bill, or of the transitional bill where transitional arrangements apply. Councils have discretion to remit all or part of the remaining 50 per cent.
Councils also have discretion to remit all or part of the rate bills on other property in a settlement on the rural settlement list if the rateable value is £16,500 or less and the council is satisfied that the property is used for a purpose that benefits the local community.
Small business rate relief
Relief is available to ratepayers who occupy either one main property with a rateable value of less than £18,000 or one main property and other additional properties that have rateable values of less than £2,600 (total less than £18,000). The level of relief is 50 per cent on properties with a rateable value of £6,000 or less and is between one per cent and 49 per cent (one per cent and 99per cent from October 2010) based on a sliding scale, for properties with a rateable value between £6,000 and £12,000. Once granted, there is no need to re-apply, but a ratepayer must inform the council if there is a change in circumstances. The Government announced in March 2010, that from 1 October 2010 eligible ratepayers will pay no rates on properties with a rateable value of up to £6,000.
More information