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How to Reduce Your Business Rates

Unoccupied property rating

Business rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period, rates are payable in full unless the unoccupied property rate has been reduced by the Government by order. In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the unoccupied property rate. Full details on exemptions can be obtained from the council. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of your non-domestic rates bill.

Partly occupied property relief

A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the local has discretion in certain cases to award relief in respect of the unoccupied part. Full details can be obtained from the council.

Small business rate relief

Ratepayers who are not entitled to another mandatory relief or are liable for unoccupied property rates and occupy a property with a rateable value which does not exceed £51,000 will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

In addition, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100% for a property with a rateable value of not more than £12,000.

This percentage reduction (relief ) is only available to ratepayers who occupy either-

(a) one property, or

(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.

The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £20,000 on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.

An application for small business rate relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact their council.

Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.

Certain changes in circumstances will need to be notified to the council by a ratepayer who is in receipt of relief (other changes will be picked up by the council). The changes which must be notified are—

(a) the ratepayer taking up occupation of an additional property, and

(b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the council which granted the relief.

Charity and Community Amateur Sports Club (CASC) relief

Charities and registered CASCs are entitled to 80 per cent relief where the property is occupied by the charity or the club, and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).

The council has discretion to give further relief on the remaining bill. Full details can be obtained from the council.

Non-profit making organisation relief

The council has discretion to give relief to non-profit making organisations. Full details can be obtained from the council.

Local discounts and hardship relief

The council has discretion to give relief in specific circumstances. Full details can be obtained from the local council.

Rate relief for businesses in rural areas

Certain types of properties in a rural settlement with a population below 3,000 may be entitled to relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property has to be occupied. An eligible ratepayer is entitled to relief at 100% of the full charge whilst the council also has discretion to give further relief on the remaining bill.

In addition, the council can give relief on certain other occupied property in a rural settlement where the rateable value is less than £16,500.

Full details can be obtained from the council.

Cancellation of backdated rates liabilities

The Government has, through the Localism Act 2011, taken a power to allow for the cancellation of certain backdated rates bills that accrued on the 2005 rating list only. Information on the type of backdated rates liability that can be cancelled is available with Business Rates Information letter titled Cancellation of Backdated Rates GOV.UK Business rates information letters (External link)

Information supplied with demand notices

Information relating to the relevant and previous financial years in regard to the gross expenditure of the council is available at www.newcastle-staffs.gov.uk. A hard copy is available on request by writing to the council or by calling 01782 715500.

Rating advisers

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 (External Link) and the Institute of Revenues Rating and Valuation (External Link) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.

Before you employ a rating adviser, 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.
 


Last updated 22 November 2017

 
 
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