Business rates 2017/18
There were a number of changes to the business rates scheme in April 2017. More changes were announced in the Spring Budget on 8 March 2017. These may have affected the amount of business rates you are charged.
Rateable value revaluation
Business rates are based on the rateable value of your business property. The rateable value is the amount of yearly rental income your property could be let for on the open market. Rateable values are reviewed periodically to take account of changes in the property market. The latest revaluation took effect from 1 April 2017. It used the amounts properties could have been rented for on 1 April 2015.
The review of rateable values has been carried out by the Valuation Office Agency. Your new rateable value is shown on your business rates bill. If you disagree with your new rateable value you can appeal to the Valuation Office Agency..
Business rates are worked out by multiplying your property's rateable value by a figure set by the government. Smaller properties have a lower multiplier figure. The multiplier figures and thresholds for what is classed as a smaller property changed from 1 April 2017 as follows:
|£0 to £17,999||48.4 pence in the pound|
|£18,000 and above||49.7 pence in the pound|
|£0 to £50,999||46.6 pence in the pound|
|£51,000 and above||47.9 pence in the pound|
Transitional relief scheme
If the rateable value of your property changed considerably either up or down, following the rateable value revaluation, then these changes will be phased in over a number of years. This is done by capping the amount a business rates bill can change between one year and the next.
|Rateable value (from April 2017)||Maximum increase in April 2017||Maximum decrease in April 2017|
|£20,000 or less||5%||20%|
|£20,001 to £100,000||12.5%||10%|
Transitional relief is awarded automatically, and your business rates bill shows how this has been worked out. We compare your business rates in 2017-18 with what you were charged in 2016-17. If the difference is greater than the cap limits listed above an amount is either credited or taken away from your business rates charge. This is described on your bill using the following terms:
- Notional Charge - business rates for 2017-18 before any reliefs are applied
- Base Liability - business rates for 2016-17 before any reliefs were applied
- Appropriate Fraction - the percentage figure by which your business rates bill is allowed to increase or decrease plus a figure for inflation
- Transitional Limited Adjustment - amount of business rates you can be charged after transition has been applied
- Transitional Adjustment - amount of transitional relief either added or taken away from your business rates charge
Small business rates relief
Discounts on your business rates bill are available if your property is occupied and has a small rateable value. From 1 April 2017 the thresholds for awarding small business rates relief increased as follows:
|Rateable values in 2016/2017||Rateable values in 2017/2018||Amount of small business rates relief|
|£6,000 or less||£12,000 or less||100%|
|£6,001 to £12,000||£12,001 to £15,000||Between 100% and 0% on a sliding scale - the larger the rateable value the smaller the amount of relief|
If you received small business rates relief in 2016-17 you do not have to reapply. Your new business rates bill will show your new entitlement.
If you become eligible for small business rates relief from 1 April 2017 and your new bill does not show this reduction let us know and we will check if you are entitled.
Other discounts and exemptions
All other discounts and exemptions will continue as before and you don't need to reapply for these from April 2017.
Spring Budget 2017
The following measures were announced in the Spring Budget on 8 March 2017. The government has published a set of consultation documents to ask for views about how these schemes will operate. We are working towards introducing these measures. However the 2017-18 business rates bills were issued before we are able put these changes in place.
Loss of small business rate relief
No business losing small business rate relief, following the revaluation of rateable values, will see their bill increase by more than £50 a month (£600 a year) in 2017-18.
This will apply to businesses which:
- received small business rates relief in the 2016-17 financial year, and
- saw an increase in their rateable value from April 2017, and
- had a reduction in their small business rates relief from April 2017, and
- saw their business rates bill increase by more than £600 per year from April 2017
We will issue new bills to eligible businesses as soon as we are able to do so.
A £1000 business rates discount will be available for public houses with rateable values of less than £100,000.
We will identify the eligible businesses and invite them to apply. We will need an application because we have to check if you get any other form of state aid.
The government will provide a fund for local councils to offer discretionary relief for businesses affected by the revaluation of rateable values in 2017.
When the government publishes the results of its consultation and confirms the share of these funds allocated to Bury Council we will be in a position to finalise a scheme for local businesses.