Rate Relief

Partly Occupied Property Relief

A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the local authority has discretion in certain cases to award relief in respect of the unoccupied part. Full details can be obtained from the local authority.

Small Business Rate Relief

Following the latest announcement by the Chancellor of the Exchequer, with effect from 1st April 2012, the temporary increase in Small Business Rate Relief will be extended until 31st March 2013.

Furthermore, previous applicants who failed to meet the criteria due to occupation of ‘multiple’ assessments, will have the lower multiplier automatically applied to their accounts in the new financial year, following a change to the legislation. 

The measure doubles the usual rate of relief so that ratepayers with rateable values below £6,000 pay no rates at all for the period, while ratepayers with rateable values between £6,000 and not more than £12,000 receive tapered relief from 100% – 0%.

There are no other changes to the scheme and the Government has confirmed that it will meet the costs of the increased levels of relief. 

Ratepayers need take no action. Once the legislation is in place, they will be sent a revised bill. In the meantime, Ratepayers should continue to pay the current instalments, if  there are any.  Current collection and enforcement procedures will continue to apply to ratepayers who miss scheduled instalments.

The legal requirement for an application form to be submitted is to be removed with effect from 1 April 2012.

Qualifying Criteria

This relief is only available to ratepayers who apply to their local authority and who occupy either—

• One property, or
• One main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,599.

The rateable value of the property mentioned in (a), or the aggregate rateable value of all properties mentioned in (b), must not exceed £17,999 outside London or £25,499 in London on every day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.

Small Business Rate Relief prior to 1 October 2010

Ratepayers who satisfy these conditions will have the bill for their sole or main property calculated using the lower small business non-domestic rating multiplier rather than the national non-domestic rating multiplier that is used to calculate the liability of other businesses. In addition, if the sole or main property is shown on the rating list with a rateable value which does not exceed £12,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 50% for a property with a rateable value of not more than £6,000. If an application for relief is granted, providing 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 of making their 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. Full details on the eligibility criteria and on how to apply for this relief are available from the local authority.

Charity and Community Amateur Sports Club Relief

Charities and Registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the Charity or CASC and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the CASC (or of that and other CASCs).

The local authority has discretion to give further relief on the remaining bill. Full details can be obtained from the local authority.

Non-Profit Making Organisation Relief

The local authority has discretion to give relief to Non-Profit Making Organisations. Full details can be obtained from the local authority.

Local Discounts and Hardship Relief

The local authority has discretion to give relief in special circumstances. Full details can be obtained from the local authority.

Rate relief for businesses in rural areas

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 and have 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 at 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 the local authority.

Download the Business Rate Rural Settlement List for Erewash Borough Council 2010-11

Deferred payment of 2009/10 rates liabilities

Ratepayers in 2009/10 were able to defer payment of 3% of their 2009/10 rates bill and, where applicable, 60% of the increase in that bill due to the ending of the 2005 rating list transitional relief scheme. The right to apply for deferral has now ended. For those ratepayers who applied for this scheme, the deferred amount to be collected in 2010/2011 and 2011/2012 will be included in the bills for each of those years respectively.

Deferred payment of 2012/13 rates liabilities

There will also be a Deferral Scheme for 2012/13 for 60% of the RPI increase (5.6%) which is 3.2%.  You can apply any time until 31 March 2013 as long as you have some of your bill left to pay.