Non-Domestic Rates (Business Rates)
Contents
Non-Domestic Rates
Non-domestic rates (also known as business rates) collected by local councils are the means by which businesses and others who occupy non-domestic property make a contribution towards the cost of local services. Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local councils according to the number of people living in the area. This money, together with revenue from council taxpayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local council and other local authorities in your area.
Rateable Value
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is normally set by the valuation officers of the Valuation Office Agency (VOA), an agency of the Inland Revenue. It draws up and maintains a full list of all rateable values, which are available on their website at http://www.voa.gov.uk/. The rateable value of your property will be shown on the front of your bill. The rateable value broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into effect on 1st April 2005, this date was set as 1st April 2003.
The valuation officer has to maintain the list and may alter the value if he or she believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they believe it is wrong. Further information on the grounds for making an appeal, and on how to make one, can be found on the VOA website at http://www.voa.gov.uk/, or from your local valuation office.
The Valuation Office, Heritage House, Fisherman's Wharf, Grimsby DN31 1SY. Telephone (01472) 622500.
The effect of successful appeals against values shown in the rating list that came into force on 1st April 2005 will normally be backdated to the beginning of the financial year in which they are made, although there are exceptions to this. Further information about these arrangements may be found on the VOA website.
If you submit an appeal against your rateable value, you cannot withhold payment of your account, or any part of it, pending settlement of your appeal.
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National Non-Domestic Rating Multiplier
The local council works out the business rates bill by multiplying the rateable value of the property by the multiplier or 'poundage' which the Government sets from 1st April each year for the whole of England. The Government normally changes the multiplier every year to move in line with inflation. By law, the multiplier cannot go up by more than the rate of inflation, except in the year of a revaluation when it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. From the 1st April 2005 there are two separate multipliers, the Small Business Multiplier, which will be applied to eligible Small Businesses, and the Standard Multiplier which will be applied to those businesses who are not eligible.
The current multiplier will be shown on the front of your bill.
The Small Business multiplier for the period 1st April 2007 to the 31st March 2008 was 44.1p
The Standard Multiplier for the period 1st April 2007 to the 31st March 2008 was 44.4p
The Small Business multiplier for the period 1st April 2008 to the 31st March 2009 is 45.8p
The Standard Multiplier for the period 1st April 2008 to the 31st March 2009 is 46.2p
Transitional Arrangements
Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reductions in bills. Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier).
The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increases in rateable value due to those changes. Further information about transitional arrangements may be obtained from North East Lincolnshire Council's Non-Domestic Rating section or on the website http://www.mybusinessrates.gov.uk/
Any transitional adjustments will be shown on the front of your bill. (see later section for more details about transition)
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Unoccupied Property Rating
Business Rates for shops and offices will not be payable for the first three months that a property is empty. After this period 100% of the bill will be payable. Business Rates for industrial properties including factories and warehouses will not be payable for the first six months that a property is empty. After this period 100% of the bill will be payable. Listed buildings and small properties with a rateable value of less than £2,200.00 will remain exempt until reoccupied.
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% of the bill. Local councils have discretion to give further relief on the remaining bill.
Authorities also have discretion to give relief on all or part of any rate bill for property occupied by certain non-profit making bodies. They can also consider giving rate relief in cases of hardship or where part of a property is beyond use for a certain period.
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Rating Advisors
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website http://www.rics.org.uk/) and the Institute of Revenues, Rating and Valuation (IRRV - website http://www.irrv.org.uk/) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.
Before you employ a rating advisor, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract. Rate Relief for businesses in rural areas
Certain types of business in rural villages, with a population below 3000 may qualify for rate relief of 50%. Businesses that qualify for this relief are the sole general store and sole post office in the village, provided it has a rateable value of up to £7,000; any food shop with a rateable value of up to £7,000; and the sole public house and the sole petrol station in the village provided it has a rateable value of up to £10,500. Local councils have discretion to give further relief on the remaining bill on such property.
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The local council may decide to give up to 100% relief to any other business in such a rural village, with a rateable value of up to £14,000, if it is satisfied that the business is of benefit to the community and having regard to the interests of its council taxpayers.
The qualifying rural villages in N E Lincolnshire (determined by regulations as those settlements with a population of less than 3,000) are the parishes of Ashby cum Fenby, Aylesby, Barnoldby le Beck, Beelsby, Bradley, Brigsley, East Ravendale, Habrough, Hatcliffe, Hawerby cum Beesby, Healing, Irby upon Humber, Stallingborough, West Ravendale and Wold Newton.
Small Business Rate Relief
From 1st April 2005, small businesses can claim a new form of rate relief, subject to certain conditions being met.
( Please contact the Business Rates Department for further details of the conditions. )
Small businesses may be able to claim up to 50% relief on their business rates if they occupy only one property in England that has a Rateable Value of £10,000 or less - or in certain circumstances where they have additional small businesses.
The rates payable are calculated using the rateable value (RV), set for individual properties by the Valuation Officer and the Multiplier, which is set annually by central government. From April 2005 there are two separate multipliers, the Small Business Multiplier, applicable to those businesses eligible for Small Business Rate Relief and the Standard Multiplier for those who do not qualify.
It should be noted that the relief is granted to the occupier and not applied simply due to the size of the rateable value of the property in question. Who will qualify for the Relief?
The relief is only available to ratepayers with either:
- One property, or
- One main property and additional properties, providing the additional properties do not have individual rateable values of more than £2,200, and the combined rateable value of all properties is under £15,000 (or £21,500 in Greater London). The threshold for the combined rateable value is dependant on the location of the main property.
Small businesses with rateable values less than £15,000 will qualify for the relief as follows:
- RV of £1 - £5,000 will receive a reduction of 50% on their liability calculated using the Small Business Multiplier.
- RV of £5001 - £9,999 will receive a reduction on a sliding scale of 1% for every £100 of rateable value calculated using the Small Business Multiplier.
- RV of £10,000 - £14,999 will not receive any reduction but will have their liability calculated using the Small Business Multiplier.
Properties that have an RV of £15,000 and over will not be eligible for relief and will have their liability calculated using the Standard Multiplier.
Small Businesses will not automatically receive the relief; in order to qualify they must complete an application form. If the business ceases to be eligible on any day during the financial year, the relief will cease on that day. If a new occupier moves into the property it will be the responsibility of the new occupier to make an application based on their own circumstances. Applicants will have a maximum of 6 months at the end of any financial year in order to claim for the relief for the preceding financial year.
Application forms can be obtained by calling the business rate section at the council or by downloading it using the following link:
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Transition - Increases & Decreases
Maximum increases in real terms for properties outside Greater London as determined by the transitional relief scheme.
|
Year |
Small Property* |
Large Property (all others) |
|
2005/06 |
5% |
12.5% |
|
2006/07 |
7.5% |
17.5% |
|
2007/08 |
10% |
20% |
|
2008/09 |
15% |
25% |
|
|
|
*(Rateable Value less than £15,000)
Where transitional arrangements apply, bills will still rise in line with inflation.
This is based on the retail price index in the previous September.
3.1% for 2005/06
2.6% for 2006/07
3.5% for 2007/08
Maximum decreases in real terms for properties outside Greater London as determined by the transitional relief scheme.
|
Year |
Small Property * |
Large Property (all others) |
|
2005/06 |
30% |
12.5% |
|
2006/07 |
30% |
12.5% |
|
2007/08 |
35% |
14% |
|
2008/09 |
60% |
25% |
|
|
|
|
Where transitional arrangements apply, bills will still rise in line with inflation.
This is based on the retail price index in the previous September.
3.1% for 2005/06
2.6% for 2006/07
3.5% for 2007/08
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Useful Links to Other Sites
The following is a list of websites providing other information about Business Rates:
Further Information
Further information on any Business Rates matters can be obtained by visiting the Customer Access Points
At Municipal Offices, Town Hall Square, Grimsby
or Civic Offices, Knoll Street, Cleethorpes
(Open 8:30 - 17:30 Monday to Friday except Bank Holidays)
or view information leaflets.
You can write to :
North East Lincolnshire Council,
Business Rates Section, Finance Department,
Civic Offices,
Knoll Street,
Cleethorpes,
N E Lincs,
DN35 8LN.
You can telephone the Rates direct line number (01472) 323770 or fax on (01472) 324322
The main number for all departments is: (01472) 313131
You can email BusinessRates@nelincs.gov.uk.
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