Business rates reductions (relief)
Business owners may be eligible for reductions in their business
rates. Examples of reductions are transitional relief, empty
properties, charity relief, rural rate relief and hardship
relief. The council provides advice on eligibility for rate
reductions and will provide application forms and process
applications for reductions.
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Transitional Relief
For those that would otherwise see significant increases in
their rates liability, the Government has put in place a £2 billion
transitional relief scheme to limit and phase in changes in rate
bills as a result of the 2010 revaluation. To help pay for
the limits on increases in bills, there also have to be limits in
reductions in bills. Under the transition scheme, limits
continue to apply to yearly increases and decreases until the full
amount is due (rateable value times the appropriate
multiplier). The scheme applies only to the bill based on a
property at the time of the revaluation. If there are any
changes to the property after 1 April 2010, transitional
arrangements will not normally apply to the part of a bill that
relates to any increase in rateable value due to those
changes. Changes to your bill as a result of other reasons
(such as because of changes to the amount of small business rate
relief) are not covered by the transitional arrangements.
The transitional arrangements are applied automatically and
are shown on the front of this bill. Further information
about transitional arrangements and other reliefs may be obtained
from Ryedale District Council or the website
http://www.businesslink.gov.uk/
.
Charitable and Discretionary Relief
Registered charities are entitled
to relief from rates on any non-domestic property which is wholly
or mainly used for charitable purposes. Relief is given at 80% of
the full rate bill, and individual Councils have discretionary
powers to give further relief on the remaining balance. Councils
also have discretion to give relief on all or part of any rate bill
for property occupied by certain non-profit-making bodies. Rate
relief can also be considered in cases of hardship or where part of
a property is not in use for a short period of time.
Rate Relief for Registered Community
Amateur Sports Clubs
Sports Clubs registered with the
Inland Revenue as Community Amateur Sports Clubs (CASCs) will now
qualify for mandatory rate relief. Billing authorities can also top
up the relief at their discretion, effectively granting CASCs the
same rights to rate relief as registered charities.
Small Business Rate Relief
Businesses with Rateable Values below the relevant Rateable
Value threshold may be eligible to qualify for Small Business Rate
Relief provided they meet the qualifying criteria. Any qualifying
ratepayer is automatically entitled to their charge being
calculated on the Small Business Rate Multiplier for the relevant
financial year. In addition to this, a reduction of up to 50% may
be applicable dependant on the Rateable Value of the qualifying
hereditament (premises).
Effective from 1 April 2010, the qualifying criteria for Small
Business Rate Relief has been amended to coincide with the new
Rating List. Any ratepayer already in receipt of the relief in the
2005 Rating List is not required to complete a new application.
Please be advised that any applications received after 30 September
2010 may only be considered for relief from 1 April 2010. The
criteria are as follows:
- Ratepayers who pay Business Rates for one
occupied property in the Non-Domestic Rating List with a Rateable
Value of less than £18,000.
- Ratepayers who pay Business Rates for more
than one occupied property, but whose total Rateable Value on all
occupied properties do not exceed £18,000. In these cases, a
ratepayer can claim against the largest assessment only. In
addition to this, the individual Rateable Values of the smaller
occupied hereditaments must not exceed £2,600 each.
Qualifying businesses are entitled to their
charge being calculated on the Small Business Rate Multiplier for
the relevant financial year. In addition to this, a percentage
reduction may also be applicable dependant on the following
criteria:
- 50% for businesses with a Rateable Value of
less than £6,000
- 49% to 1% for businesses with a Rateable
Value between £6,000 and £11,999. This is calculated on a sliding
scale. The percentage of relief decreases by 1% for every increase
of £120 in the Rateable Value.
- 0% (Small Business Rate Multiplier only)
for businesses with a Rateable Value between £12,000 and
£17,999.
Unoccupied Premises -
Hereditaments that are not occupied for Business Rates purposes are
not eligible to receive Small Business Rate Relief. They remain
subject to the Empty Property Rate Regulations.
In cases where a ratepayer is making an
application on an occupied hereditament but is also responsible for
a premises that is unoccupied, then the property subject to Empty
Property Rates is ignored when determining the application. In the
event the empty premises becomes occupied, it is the responsibility
of the Ratepayer to advise the Local Authority of the change in
circumstances and state that Small Business Rate Relief is in
effect on another premises.
Relief Increases From 1 October 2010 -
The June 2010 Budget announced that the Government would make Small
Business Rate Relief more generous, initially for one year starting
from 1 October 2010. This was subsequently extended in the March
2011 Budget for a further year. The relief amounts will revert back
to their original level effective from 1 October 2012. The changes
to the amount of relief are as follows:
- 100% for businesses with a Rateable Value
of less than £6,000
- Businesses with a Rateable Value between
£6,000 and £11,999 that are receiving relief at the tapered amount
will receive an increase in relief up to a maximum of 99% dependant
on the Rateable Value.
Businesses with a Rateable Value between
£12,000 and £18,000 are unaffected and will remain entitled to the
Small Business Rate Relief Multiplier only.
Rural Rate Relief
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 with 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 of 50% of the full charge whilst the local authority also
has 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. Full details can be
obtained from Ryedale District Council.
Further Information
For further information please contact the Local Taxation
Manager on 01653 600666 or email
brates@ryedale.gov.uk.