Empty Property
With effect from 1 April 2008 the Government has reformed empty property relief. Most property that has been empty for more than three months - or, in the case of industrial property, for more than six months -will no longer receive relief from rates.
After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate, unless it:
- Qualifies for the new zero rate provided by the Rating (Empty Properties) Act 2007. From 1st April 2008, the rates liability of empty property that is held by a charity and appears likely to be next used for charitable purposes, or that is held by a community amateur sports club and appears likely to be next used for the purpose of the club, will be reduced from 10% of the basic occupied rate to zero. Companies in Administration will also be exempt from rates on their empty properties.
- Qualifies for an exemption from rates under the NNDR ( Unoccupied Property) Regulations. While the current permanent exemption for industrial property will be reduced to six months, the Government has preserved the majority of the other existing exemptions unchanged.
With effect from 1 April 2009, legislation has been amended so that properties whose rateable value is less than £15,000 will be exempt from empty property rates.
Organisations entitled to Relief
Charities are automatically entitled to an 80% reduction in their Rates bills. Authorities have discretion to reduce the bill further or to waive it altogether.
Authorities also have discretion to grant relief of up to 100% to certain non-profit making bodies. The purposes of the Organisation applying for the relief must be Philanthropic, or concerned with Education, Social Welfare, Science, literature or the Fine Arts.
Authorities also have discretion to grant relief of up to 100% to certain non-profit making bodies. The purposes of the Organisation applying for the relief must be Philanthropic, or concerned with Education, Social Welfare, Science, literature or the Fine Arts.
The Occupier of a General Store/Post Office, Public House or Petrol Station may also qualify for Rate relief if they are situated in a designated Rural settlement and they are the only such General Store/Post Office, Public House or Petrol Station in that settlement.
Authorities also have the discretion to remit all or part of the Rates charged, if the Business can prove that they are sustaining hardship and that the closure of their Business would have a detrimental effect on the Local Community.
Please contact the Billing Section on 024 7637 6534 to discuss any potential claim for hardship relief or for further details on any of the above.
Hardship Relief
Billing Authorities have the power to reduce or remit an amount a person/body is liable to pay if it is satisfied that;
a) The ratepayer would sustain hardship if the authority did not do so, and
b) It is reasonable for the authority to do so, having regard to the interests of persons subject to it's
Council Taxes.
Where relief is granted, 25% of the cost is met by local charges (i.e. Council Tax). It is this reason that the Council will usually only grant this relief where it is evident that it is in the interests of the community that the ratepayer remains in business.
A written request must be made, accompanied by copies of the last two years of audited accounts and a business plan demonstrating how the company would survive if relief were granted.
Small Business Rate Relief
Small businesses may be eligible for a reduction of up to 50% of their business rates bill. Eligible properties below £5,000 rateable value will receive 50% rate relief and this will decrease on a sliding scale of 1% for every £100 up to £9,999. In addition, the bill will be calculated using the small business rating multiplier, currently 48.1p per pound of rateable value for 2009/10. Eligible properties that have a rateable of between £10,000 and £14,999 will receive no relief but will have the small business rating multiplier applied to the calculation of their bill. For those properties that do not qualify, the full non-domestic rating multiplier will be used in the calculation of their bills. This is 48.5p for 2009/10.
Please click on the link below for further details and an application form. For any queries, please telephone our Billing team on (024) 7637 6534 or e-mail: billing.section@nuneatonandbedworth.gov.uk
Over 700 businesses in the Borough currently benefit from this scheme - please check and make sure you're not missing out!
Please note that the Government has recently announced that businesses will not have to reapply for Small Business Rate Relief for 2010/11. Entitlement will automatically continue but you should remember to report any changes that may affect your entitlement.
Business Rates Deferral Scheme
New regulations that come into force on 31 July 2009 allow businesses to defer part of their 2009/10 rates increase over 3 years.
The key elements of the scheme are:
- All ratepayers with outstanding 2009-10 rates liabilities can defer 3% of their total 2009-10 bill, which is equivalent to 60% of the increase in 2009-10 bills resulting from the annual RPI inflation adjustment.
- Where applicable, ratepayers can defer an additional 60% of the increase in their 2009-10 bills due to the end of the 2005 transitional relief scheme.
- Deferring ratepayers will have to pay back the deferred amount during the next 2 fiscal years in equal portions: 50 % in 2010-11 and 50% in 2011-12.
Application packs (which will also include information about small business rate relief) will be sent to all businesses in the Borough inviting them to apply for help under this scheme.
Other points to note:
- Ratepayers will have to apply to the Council to be granted deferral.
- Ratepayers who take up occupation during 2009-10 are still eligible for deferral.
- Where the deferring ratepayer ceases to be liable to pay rates in respect of the property to which the deferral applies, the full outstanding balance for 2009-10 will become due in the normal way.
- Some ratepayers may not qualify for the scheme. For example, where the ratepayer has already paid the 2009-10 rates liability in full or where the ratepayer is in default and has lost the right to pay by instalments.
For further details, or to request an application form, please contact the Billing team on (024) 7637 6534
