Transitional arrangements / relief
The Government decided that following a national revaluation of properties: rate bills should not rise or fall by more than a certain percentage each year after allowing for inflation. The Government sets the amounts by which rate bills could rise or fall from year to year.
If the change in the bill is more than the limits set by Government, we will add or deduct transition from the bill each year, within the set limits, until, eventually the bill can be calculated using only the rateable value and the rate poundage(multiplier).
The relief only applies to the bill based on the 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 the bill that relates to any increase in rateable value due to those changes.
Charitable (mandatory) and discretionary relief
Charities are entitled to relief from rates on any non-domestic property that is wholly or mainly used for charitable purposes. As from April 2004 , sports clubs that are registered with the Inland Revenue as Community Amateur Sports Clubs(CASCs) will also be entitled to relief. Relief is given at 80% of the bill. The Local Council has the discretion to give further relief on the remaining bill.
We also have discretion to give relief on all or part of any rate bill for property occupied by certain non-profit making bodies. We can also consider giving rate relief in cases of hardship or where part of a property is beyond use for a certain period.
Rate relief for businesses in rural areas
Certain type of business in rural areas, where the population is below 3000, may qualify for rate relief of 50%. Businesses that qualify for this relief are the sole General Store or the sole Post Office in the village, provided it has a rateable value of up to £6000(£7000 from 1 April 2005): any food shop with a rateable value of up to £6000(£7000 from 1 April 2005) and the sole Public House and the sole Petrol station in the village provided it has a rateable value up to £9000(£10,500 from 1 April 2005). Local councils have discretion to give further relief on the remaining bill for such a property.
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 £12000(£14,000 from 1 April 2005) if it is satisfied that the business is of benefit to the community and having regard to the interest of Council taxpayers.
Rate relief is available for new businesses with rateable values of up to £6000 where the business is set up on previously agricultural land or buildings. Subject to certain conditions, the business will get a 50% reduction in the rates bill for up to 5 years. Local Councils have discretion to give further relief on the remaining bill on such a property.
Small business rate relief
From the 1 April 2005 to coincide with the Revaluation of all non-domestic properties the Government is introducing a Small Business Rate Relief scheme for all businesses whose property has a rateable value of less than £15,000. The scheme reflects an acknowledgement that business rates appear to form a proportionately heavier burden on small businesses than for larger businesses. The new scheme is designed to help small businesses in this regard.
Eligible properties with a rateable value of less than £5000 will receive 50% relief. This relief will decrease on a sliding scale of 1% for every £100 in rateable value over £5000 and below £10,000, at which point no relief is applicable.
In addition, eligible properties will have their rate bill calculated on the small business non-domestic rating multiplier.
Ratepayers who meet the criteria but their rateable value is above £10,000 and below £15,000 will be within the 'buffer zone'. Although these ratepayers will not qualify for Small Business Rate Relief, their rate bill will be calculated on the small business non-domestic rating multiplier.
Who qualifies?
Ratepayers who only occupy one property in England with a rateable value of up to £10,000 or ratepayers who only occupy one main property in England with a rateable value of less than £10,000 and other additional properties, providing those additional properties have rateable values less than £2,200 and the total value of all the properties is below £15,000. Other properties include car parks, stores etc for which you receive a separate rate bill.
Ratepayers can only claim relief in respect of one property.
Ratepayers must meet the criteria on the 1 April of the relevant year and on every chargeable day for which they are claiming relief.
Ratepayers who meet the above criteria must submit an application for each year. Under new arrangements applications made for 2007/8 will give relief for the remainder of the Rating list ie up to March 2010.
Applications for a financial year can be submitted up to six months before the start of the financial year and up to six months after.
If the rateable value of a property is altered and the property subsequently meets the Small Business Relief criteria as at the 1 April of that year, an application can be submitted up to six months after the date of the notification of the alteration.
Ratepayers within the ' buffer zone ' must submit an application in order for their rate bill to be calculated on the small business non-domestic rating multiplier.
Ratepayers must notify the Authority of any circumstances that may affect their entitlement to relief within 4 weeks of the change.
NB. Businesses that already receive Charity or Rural Relief will not qualify for Small Business Rate Relief. However those in receipt of Discretionary Rate Relief may complete an application if you meet the criteria.
For more information or to make application for Business Rate relief please contact the Business Rates Office on 0161 253 5035 or e-mail businessrates@bury.gov.uk
