Circumstances under which rates reductions might apply
include:
The rated property is empty
From 1 April 2008 most property that has been empty for more
than three months – or in the case of industrial property and
stores, for more than six months – will no longer receive relief
from rates. Therefore, after the initial three or six month
rate-free period expires, empty property will be liable for 100% of
the occupied business rate.
Most current exemptions from empty rate will continue to apply
and some properties such as those that are listed [under the
Planning (Listed Buildings and Conservation Areas) Act 1990] or
whose values are less than £2,200 will continue to be completely
exempt when empty.
Premises occupied by a
charity
Premises occupied by charities and wholly and mainly used for
charitable purposes are entitled to a reduction in the rates
payable. Relief is given at 80% of the rates bill (if applicable,
after taking into account transitional arrangements).
The Common Council has discretion to remit all or part of the
remaining 20% of the charity's bill. The Common Council also has
discretion to remit all or part of any rates bill in respect of
property occupied by certain bodies not established or conducted
for profit.
Small Businesses
Small Business Rate Relief is available at 50% for ratepayers
occupying single properties with a rateable value up to £5,000,
with relief declining in percentage terms on a sliding scale until
it is 0% at £10,000.
The relief is only available to ratepayers with either
a. one property, or
b. one main property and other additional properties providing
those additional properties have rateable values less than £2,200.
The rateable value of the property mentioned in (a), or the
aggregate rateable value of all properties mentioned in (b), must
be under £21,500.
The scheme is funded through a supplement on the rate bills of
all businesses not eligible for the relief. The supplement is built
into the standard non-domestic rating multiplier. However,
ratepayers of eligible business properties with rateable values
between £10,000 and £21,500 do not have to contribute towards the
relief and will have their bills calculated using the lower small
business non-domestic rating multiplier.
Ratepayers must be eligible on 1 April of each year and for each
chargeable day for which they are claiming relief in that year. If
a ratepayer ceases to be eligible on a day during the year in
question, the relief will cease on that day. An application for
relief must be submitted in writing to the local authority
within six months of the end of the financial year to which it
relates.
From 1 April 2007, if an application for relief is granted,
provided the ratepayer's circumstances do not change, the
application will not need to be renewed until the next revaluation
of non-domestic premises. Revaluations happen every five years. The
current valuation period ends on 31 March 2010.
Certain changes in circumstances will need to be notified to the
local authority by the ratepayer (other changes will be picked up
by the local authority). The changes which must be notified
are:
a. the ratepayer taking up occupation of a property they did not
occupy at the time of making their application for relief; 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.
Notification of these changes must be given to the local
authority within four weeks of the day after the day the
change happened. If this happens, there will be no interruption to
the ratepayer's entitlement to the relief. However, failure to
notify the authority within this timeframe will mean the ratepayer
ceases to be entitled to the relief with effect from the day that
the change happened. If they are still eligible, the ratepayer will
be entitled to the relief again with effect from the day that they
notify the local authority.
A notification that the ratepayer has taken up occupation of an
additional property must be by way of a fresh application for
relief; notice of an increase in rateable value must be given in
writing.