Business rates revaluation 2017

Rateable value revaluation

Business rates are based on the rateable value of your business property. This is an estimate of the open market rental value of a property on a particular date. 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. Some rateable values in the borough increased and others reduced.

The review of rateable values was carried out by the Valuation Office Agency. Your rateable value is shown on your business rates bill. If disagree with it you can appeal to the Valuation Office Agency.

Big changes in business rates bills due to the 2017 revaluation, either up or down, are phased in over a number of years. This is done by limiting the amount a bill can change between one year and the next. There are three ways this can happen. You may be eligible for one or more of these schemes depending on your circumstances.

Transitional arrangements

There is a cap on the amount your bill can go up or down after the 2017 revaluation of rateable values. The amount of the cap depends on both:

  • your property's rateable value
  • whether your bill is increasing or decreasing as a result of revaluation

The scheme runs for 5 years, and proposed caps for future years can be found at Gov.uk - business rates transitional relief

 

Maximum increases and decreases in April 2019
Rateable value (from April 2017)Maximum increase in April 2019Maximum decrease in April 2019
£20,000 or less10%35%
£20,001 to £100,00020%20%
Over £100,00049%5.9%
Maximum increases and decreases in April 2018
Rateable value (from April 2017)Maximum increase in April 2018Maximum decrease in April 2018
£20,000 or less7.5%30%
£20,001 to £100,00017.5%15%
Over £100,00032%4.6%
Maximum increases and decreases in April 2017
Rateable value (from April 2017)Maximum increase in April 2017Maximum decrease in April 2017
£20,000 or less5%20%
£20,001 to £100,00012.5%10%
Over £100,00042%4.1%

The above percentages are also subject to a 2% allowance for inflation.

At the end of each financial year the amount of transitional relief gradually reduces until you are charged the full amount of business rates.

Transitional relief is awarded automatically and your business rates bill shows this has been worked out. We compare your business rates in the current financial year with what you were charged in the previous financial year. If the difference is greater than the limits shown above an amount is either added or taken away from your business rates bill. This is described on your bill using the following terms:

  • Notional Charge - business rates for the current financial year before any reliefs are applied
  • Base Liability - business rates for the previous financial year 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

Supporting small businesses scheme

Businesses who lost small business rate relief, following the 2017 revaluation, will not see their bill increase by more than £50 a month (£600 a year).

The scheme will continue for 5 years. Each year increases in business rates bills for eligible businesses will be capped at £600. The discount will end:

  • when your bill reaches the amount you would have paid without the scheme
  • if the property falls vacant

This discount is applied automatically to your business rates bill.

Local discretionary relief scheme

This discount supports small to medium sized businesses who saw increases in their business rates because their rateable values went up in April 2017.

To qualify all of the following must apply:

  • an increase in your rateable value on 1 April 2017 due to revaluation
  • an increase in amount of business rates charged between 2016-17 and 2017-18 of £50 or more
  • the 2017 rateable value of your property is £100,000 or below
  • you occupied your property on 31 March 2017 and 1 April 2017

Discretionary relief is not be available to businesses:

  • which do not directly provide employment; including advertising signs and communication masts, car parks and ATMs
  • relating to public funded bodies; including those owned by Bury Council, hospitals, doctor's surgeries and schools
  • where an award would be likely to exceed the State Aid limits, which are explained at Gov.uk - State Aid guidance 

The scheme is paid for by the government for 4 years. The amount of funding reduces each year meaning we have to award discounts for one financial year at a time. At the end of the year the scheme is reviewed taking into account the number of eligible businesses and the funding available.

Local discretionary relief scheme awards
Financial yearAmount of local discretionary relief
2017-1890% of the amount business rates increased by in 2017-18 from the previous year
2018-1925% of the amount business rates increased by in 2018-19 from the previous year
2019-2017% of the amount business rates increased by in 2019-20 from the previous year

The discount will end:

  • when your bill reaches the amount you would have paid without the scheme
  • if you stop being liable for business rates
  • if the property falls vacant

More information can be found in our local discretionary relief scheme policy below.

Local discretionary relief is awarded automatically. If it is not on your business rates bill and you believe that your business fits the qualifying criteria shown above please contact us.

Contact us about business rates local discretionary relief

Contact for Business Rates