Business rates / National Non-Domestic Rates (NNDR)

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Rateable Value
Transitional Arrangements
Unoccupied Property Rating
Charitable and Discretionary Relief
Rate relief for businesses in rural areas
Rate relief for new, non-agricultural business on previously agricultural land or buildings
Rating advisers
If you appeal against your rateable value

The Non-Domestic Rates, or Business Rates, collected by local councils are the means by which businesses and others who occupy non-domestic property make a contribution towards the cost of local services. Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed by local councils according to the number of people living in the area. This money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local council and other local authorities in your area.
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rateable

Rateable Value

Apart from properties that are exempt from Business Rates, each non-domestic property has a rateable value, which is normally set by the valuation officers of the Valuation Office Agency (VOA), an Agency of the Inland Revenue. It draws up and maintains a full list of all rateable values, which are available at Valuation Office Agency website (This link will open in a new window). The rateable value of your property will be shown on the front of your bill. The rateable value broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into affect on 1 April 2010, this date was set as 1 April 2008.

The valuation officer has to maintain the list and may alter the value if he or she believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown if they believe it is wrong. Further information on the grounds for making an appeal, and on how to make one, can be found on the Valuation Office Agency website (This link will open in a new window) or from your local valuation office at Valuation Office Agency, Eastbrook, Shaftsbury Road, Cambridge, CB2 2DU. Telephone 01223 431300.

The effect of successful appeals against values shown in the rating list that come into force on 1 April 2005 will normally be backdated to the beginning of the financial year in which they are made, although there are exceptions to this. Further information about these arrangements may be obtained from the DCLG Business rates website (This link will open in a new window).
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multiplier

National Non-Domestic Rating Multiplier

The local council works out the business rates bill by multiplying the rateable value of the property by the multiplier or "poundage" which the Government sets from 1 April each year for the whole of England. The Government normally changes the multiplier every year to move in line with inflation. By law, the multiplier cannot go up by more than the rate of inflation, except in the year of a revaluation when it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. From 1st April 2010 the multiplier will be 41.4p or 40.7p if small business rate is granted.
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Revaluation

Every five years the Valuation Office Agency (VOA) gives all non-domestic (business) properties new rateable values so local authorities can work out the business rates. The new rateable values will broadly reflect the yearly open-market rental value of each property. The purpose of the revaluation is not to change the amount of money collected in rates nationally, but to make sure that individual rateable values reflect the changes that have taken place in the property market since the last revaluation. The new rateable values for the 2010 revaluation came into effect on 1st April 2010 and are available on the Valuation Office Agency website (This link will open in a new window).
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transitional

Transitional Arrangements

Transitional Relief was introduced by the Government in 1990 to ease the effect of successive statutory revaluations. The scheme has been amended slightly at each revaluation but remains broadly the same. Any increase in liability, as a result of the revaluation, is limited to a fixed percentage amount after allowing for inflation. Any decrease in liability is also limited in a similar way. The Local Authority calculates any adjustment according to the Transitional Relief Scheme regulations.

It is important to realise that any reduction in the gross charge arising from a successful appeal against your rateable value may lead to an equal loss in your transitional relief award. Consequently the amount you pay may remain the same until you no longer qualify for transitional relief

Any transitional adjustments will be shown on the front of your bill.

Further information about transitional arrangements may be obtained from your local billing authority or on the DCLG Business rates website (This link will open in a new window).
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unoccupied

Empty Property Rates.

Most property that has been empty for more than three months, or in the case of industrial property, for more than six months, no longer receives relief from Business Rates. If a property has already been empty for 3-6 months as at 1st April 2008, the charge will apply immediately on that date.

Commercial property such as shops and offices are exempt from rates for up to 3 months if empty. After 3 months if they remain empty they are subject to 100% charge.

Industrial premises i.e warehouses, factories and stores are exempt for up to 6 months if empty and then to full charge.

For 2010/2011 properties with a rateable value of less than £18,000 are not subject to an empty rate charge.

Property held by a charity or a community amateur sports club are not subject to an empty rate charge if when next in use the property continues to be occupied by a charity or community amateur sports club.

Listed Buildings are not subject to an empty rate charge.

Some frequently asked questions answered:

Q Can I get my property taken out of Rating?

A If your property is not capable of beneficial occupation, for instance, if it is poor condition and cannot be economically repaired, you should contact the Valuation Office Agency, Eastbrook, Shaftesbury Road, Cambridge. CB2 8DU. (Telephone 01223 431300). They are responsible for the decision whether a property should be rated or not.

Q Can I appeal against the change in my Rates liability?

A The changes in liability arising from the reforms to empty property relief are not grounds for appeal

For further information please contact the Business Rates Section on 01954 713112 or email nndr@scambs.gov.uk (This link will open in a new window)

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charitable

Charitable and Discretionary Relief

Registered Charities are entitled to relief from rates or any non-domestic property that is wholly or mainly used for charitable purposes. Relief is given at 80% of the bill. Local councils have discretion to give further relief on the remaining bill. Authorities also have discretion to give relief on all or part of any rate bill for property occupied by certain non-profit making bodies. They can also consider giving rate relief in cases of hardship or where part of a property is beyond use for a certain period.
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Rate relief for community amateur sports clubs

Registered community amateur sports clubs (CASCs) can receive 80% rate relief from 1 April 2004.
To qualify as a CASC, a sports club must:

be open to the whole community;
be run as an amateur club;
be a non-profit-making organisation
aim to provide facilities for, and encourage people to take part in, eligible sport.

If you are a sports club which has not yet registered as a CASC and are interested in the registration process, please see www.inlandrevenue.gov.uk/casc/index.htm (This link will open in a new window) or call the Inland Revenue Sports Clubs Unit on 0131 7774147.

Rate relief for businesses in rural areas

Certain types of business in rural villages, with a population below 3,000 may qualify for rate relief of 50%. Businesses that qualify for this relief are the sole general store and the sole post office in the village, provided it has a rateable value of less than £8,500; any food shop with a rateable value of less than £8,500; the sole pub and the sole petrol station in the village provided it has a rateable value of less than £12,500. Local councils have discretion to give further relief on the remaining bill on such property.

The local council may decide to give up to 100% relief to any other business in such rural village, with a rateable value of up to £16,500, if it is satisfied that the business is of benefit to the community and having regard to the interests of its council taxpayers.
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Rate relief for small businesses

The Government has introduced a rate relief scheme to help small businesses. This relief has been available since April 2005.

Small Business Rate relief gives businesses occupying properties which have rateable values of under £12,000 a percentage of relief from their business rates and they will benefit from the lower rate poundage, which is 40.7p for 2010/2011.

Properties with rateable values of between £12,000 and £17,999 will only receive the lower rate poundage.

Properties with rateable values of £18,000 or higher are not entitled to any relief under the scheme.

This is only available to businesses which declare that they only use one property in England.

Second properties with a rateable value of less than £2,600 are ignored. The total Rateable Value of the properties when combined must be below the maximum limit and relief is based on the rateable value of the qualifying property. There is no relief for the second property.

To qualify for relief, each business must apply to their local authority. If you think that you might be eligible to receive small-business rate relief, please contact the business rate section for a form. Tel. No: 03450 450 064.
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Rating advisors

Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - www.rics.org (This link will open in a new window)) and the Institute of Revenues Rating and Valuation (IRRV - www.irrv.net (This link will open in a new window)) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating advisor, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
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appeal

If you appeal against your rateable value

Until your appeal is settled you should pay the full amount shown on your rate demand notice. Any overpayment resulting from a subsequent reduction will be refunded and interest may be added to the refund but only if payments have been made strictly in accordance with the regulations for the payment of Non-Domestic Rates.

Any reduction in your gross charge resulting from a successful appeal against your rateable value may lead to an equal loss in transitional relief. The amount you are required to pay therefore may not change until you no longer qualify for transitional relief.

If you require any additional explanation regarding how your Annual Charge has been calculated, including any Transitional Adjustment, please contact us 03450 450 064.