The five-yearly revaluation of commercial properties can result in a large increase in the rateable value. This in turn could lead to a higher business rate bill to be paid by the ratepayer. The Transitional Relief scheme helps phase in an increase to a bill by limiting the amount that it can be increased by. Similarly, if a property’s rateable value falls after the revaluation, then the amount that the bill can be reduced by is subject to the transitional scheme so that large reductions are also phased in.
These limits continue to apply to annual increases and decreases until the full amount is due (rateable value x the multiplier)
Your annual bill will be automatically adjusted to take in any transitional relief where it applies to your property so you do not need to apply for it.
To calculate the transitional relief for your property you must first determine which set of percentages to apply. If the gross rates payable for 2010/11, i.e. rateable value multiplied by the poundage rate, is MORE than what you paid in 2009/10 then the following table must be used to calculate how much your bill can be increased by.
A small property is a property with a 2010 rateable value below £18,000 - or £25,500 within Greater London. All other properties are large properties.
|Year||Small Property||Large Property|
|2010/11||5.0% plus inflation||12.5% plus inflation|
|2011/12||7.5% plus inflation||17.5% plus inflation|
|2012/13||10.0% plus inflation||20.0% plus inflation|
|2013/14||15.0% plus inflation||25.0% plus inflation|
|2014/15||15.0% plus inflation||25.0% plus inflation|
If the gross rates payable for 2010/11 i.e. rateable value multiplied by the poundage rate, is LESS than what you paid in 2009/10 then the following table must be used to calculate how much your bill can be reduced by.
|Year||Small Property||Large Property|
|2010/11||20.0% plus inflation||4.6% plus inflation|
|2011/12||30.0% plus inflation||6.7% plus inflation|
|2012/13||35.0% plus inflation||7.0% plus inflation|
|2013/14||55.0% plus inflation||13.0% plus inflation|
|2014/15||55.0% plus inflation||13.0% plus inflation|
Small Business Rate Relief
From 1 April 2005 central government introduced the Small Business Rate Relief (SBRR) scheme .
From 1st April 2010 a small business is regarded as one which has a rateable value of less than £18,000. (£15,000 for period 01/04/2005 to 31/03/2010)
To achieve this two multiplier amounts were introduced, a higher one and a lower one and the difference between the two multipliers is known as the Small Business Rate Supplement. Money collected from ratepayers paying the supplement is used to fund the SBRR scheme.
The relief granted varies depending on the rateable value of the property. Normally, If the rateable value is below £6,000 the relief allowed is 50%, then declines on a sliding scale to 0% on properties that have a rateable value of between £6,000 to £11,999.
However, from 1 October 2010 up to 31st March 2013 the relief allowed to small businesses has increased. All eligible businesses with a rateable value up to £6000 now receive 100% relief , those with a rateable value between £6,000 and £11,999 receive relief from 100% down to 0% on the sliding scale.
Central government has just announced that the increased Small Business Rate Relief will continue for another year from 1st April 2013.
Also, central government has now passed legislation to allow ALL businesses that ccupy premises that have a rateable value below £18,000 to have their bills calculated using the lower poundage rate, irrespective of how many premises they occupy. Ratepayers do not have to apply for this as their new bills will automatically reflect this calculation.
To qualify for any actual relief or discount a ratepayer can normally only occupy ONE property in England, but, if they do occupy another property, the rateable value of the SECOND property has to be below £2600. Properties that are unoccupied are not elegible for SBRR.
From 1 April 2012 any new business that wishes to be considered for SBRR will need to complete a Declaration form to confirm this. Any business whose liability began before 1st April 2012 will still need to complete an Application form.
To qualify for a discount under the Small Business Rate Relief scheme you must meet the following criteria.
- The property must have a rateable value below £11,999.
- The property must be occupied.
- The property is the only main property the ratepayer occupies
- Any other properties occupied must have a rateable value of less than £2,600 and
- All occupied properties have combined rateable values not exceeding £17,999
- The ratepayer must notify the council of particular changes in circumstances that effect their entitlement to relief.
To find out more please contact the Business Rates team on 01803 207201
Charity and Community Amateur Sports Club Relief
Registered Charities and Community Amateur Sports Clubs are eligible to apply for 80% relief for properties occupied by the charity or club and being used for that purpose.
Local authorities have the discretion to grant relief to non-profit making organisations where membership is not restricted. These tend to be those of a religious or educational nature, or run for the good of the local community.
A review of all discretionary relief awards is carried out periodically and customers will be notified in writing. They will all be invited to renew their applications and advised of what docmentation they will need to provide at that time.
Partly Occupied Property Relief
If a property is only partly occupied, a certificate (S44a) can be obtained to allocate occupied and empty property values thereby reducing a ratepayer’s bill. However, this relief is awarded at the discretion of the local authority.
Hardship Relief (under section 49 of the Local Government Finance Act 1988)
If a business is suffering financial hardship we may be able to reduce the business rates. The local authority has discretion to grant hardship relief in certain special circumstances.
The Council would consider whether hardship would be sustained if the authority did not provide relief. It must also be determined that if the relief is not granted, and the business closes, it will be detrimental to the local community by way of a loss of a unique service provided, or the employment of local residents.
The Council has to determine these factors as 25% of the relief is funded by local taxpayers. This relief can be awarded to any ratepayer whether they are paying occupied or empty property rates and each case is treated on its own individual merits.
Applications must be made in writing and sent in with trading accounts for the last three years as proof of your financial circumstances. Simple loss of trade due to the economic climate would not normally be a reasonable basis for a claim.
- Business Rates Enquiries
- Tel: 01803 207201
- Fax: 01803 207234