Rate Relief

Transitional Relief

A national revaluation of non-domestic properties takes place every 5 years. Some businesses will see significant changes in the size of their rate bills as a result of the revaluation and so a transitional scheme has been introduced to bring in these changes gradually. The arrangements limit the amount by which a bill can increase, or reduce, from one year to the next.

Empty Property Relief

If a property is unused the rate charge is reduced by 50%. This charge is the liability of the person entitled to possession of the property and so could be the owner or a lessee.

There are several exemptions from the 50% empty rate charge:

• The initial 3-month period following the date the property became unoccupied. This does not apply where the property is re-occupied for a period of less than six weeks
• Industrial properties. The definition of industrial includes manufacture and storage but specifically excludes retail premises. Where the law prohibits occupation of the property, or where action is being taken by the Crown or a public authority to acquire the property
• Listed buildings
• Ancient monuments
• Small properties. This means any property with a rateable value of £1,900 or less
• The owner is insolvent or deceased. This applies where the liable person is entitled to possession only in his capacity as liquidator or trustee, or the personal representative of a deceased person

If part of a property is unused, the general rule is that rates are still due on the whole assessment. Where part of a property is unused for a short time only however the Council has discretion to award empty property relief on the unused portion. To apply for this relief you should set out in writing what part of your property is unused and explain why it will remain unused for a short time only.

Charitable Relief

Charities are automatically entitled to an 80% reduction in the rate bill provided that the property is being used for charitable purposes. There is discretion to further reduce bills - most of the cost of this extra relief falls on local council taxpayers.

Relief can also be awarded to organisations not established for profit. The purpose of the organisation must be philanthropic, religious, or concerned with education, social welfare, science, literature or the fine arts. Sports Clubs can also be awarded this relief.

Application forms for charitable relief are available from the Rates Office on 01509 634833.

Rural Rate Relief

Small general stores and post offices located in rural areas can qualify for an automatic 50% reduction in the rate bill if they are the only such business in their community. In addition, relief can be awarded to other businesses in rural areas that are of benefit to the local community and where it is reasonable to make the award having regard to the interests of the council taxpayers who will fund part of any relief given.

New legislation published in March 2001 proposes to extend the 50% mandatory relief scheme to all new small-scale non-agricultural businesses on farms to help diversification, as well as extending relief to food shops, and the sole pub or petrol filling station in a rural area.

Hardship Relief

Relief can be awarded where the ratepayer would otherwise sustain hardship but the Council must first consider whether this is reasonable having regard to the interests of the council taxpayers who will fund part of any relief awarded. To claim hardship relief you should set out your circumstances in writing and explain why the business is particularly deserving of support.

Small Business Rate Relief