BUDGET ANNOUNCEMENT MARCH 2010. TEMPORARY INCREASE IN LEVEL OF SMALL BUSINESS RATE RELIEF.
Read on for further details and see attached Small Business Rate Relief Fact Sheet 2010
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. 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 types of properties in a rural settlement with a population below 3000, may be entitled to relief. The property must be the only General Store or the only Post Office or food shop in the village, provided it has a rateable value of less than £8,500 or the only Public House or the only Petrol station in the village provided it has a rateable value of less than £12,500. The property has to be occupied. An eligible ratepayer is entitled to relief at 50% of the full charge whilst the Local Authority also has the discretion to give further relief on the remaining bill.
In addition the Local Authority can give relief on certain other occupied property in a rural settlement where the rateable value is less than £16,500.
Small business rate relief
BUDGET ANNOUNCEMENT TEMPORARY INCREASE IN LEVEL OF SMALL BUSINESS RATE RELIEF 2010
The Small Business Rate Relief scheme is for businesses whose property has a rateable value of less than £18,000. The scheme reflects an acknowledgement that business rates appear to form a proportionately heavier burden on small businesses than for larger businesses. The scheme is designed to help small businesses in this regard.
Eligible properties with a rateable value of less than £6,000 will receive 50% relief. This relief will decrease on a sliding scale of 1% for every £100 in rateable value over £6,000 and below £12,000, at which point no relief is applicable.
On the 24 March 2010, it was announced that Government will temporarily increase the level of SBRR so that eligible ratepayers will pay no rates on properties with rateable values up to £6000 with a tapered relief between 100% and 0% for properties with rateable values between £6,001 and £12,000. The new levels of relief will be available for 12 months from the 1 October 2010 to 30 September 2011.
There are no other adjustments to the scheme. Eligibility criteria will remain the same and there is no change to the rating multipliers.
If you already qualify for the relief the changes will be applied to your account automatically and you will be notified accordingly at the relevant times.
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 £12,000 and below £18,000 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 £12,000 or ratepayers who only occupy one main property in England with a rateable value of less than £12,000 and other additional properties, providing those additional properties have rateable values less than £2,600 and the total value of all the properties is below £18,000. 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 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.
If an apllication for relief is granted, 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 not need to re-apply for relief in each new valuation period.
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:
- the ratepayer taking up occupation of a property they did not occupy at the time making thier application for relief, and
- 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 4 weeks of the day after the day on which the change happened. If this happens, there will be no interruption to the ratepayer's entitlement to the relief. 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.
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
