Business rates reliefs and exemptions

Business rates reliefs and exemptions

Non-Domestic Rates or Business Rates collected by local authorities are taxes to help pay for local services. They are charged on most non-domestic properties.

If you pay business rates, your property may be eligible for a business rate relief.

Some reliefs are Mandatory (which means the local authority is required by law to apply them, providing the qualifying criteria are satisfied). Please note that an application process will need to be followed to help us ensure that any qualifying criteria are satisfied. The following reliefs are Mandatory:

  • Small business rate relief
  • Rural rate relief
  • Charities (80% relief)
  • Registered Community Amateur Sports Clubs (80%)
  • Public toilets (The Public Lavatories Bill)

Others are Discretionary (meaning they are applied using the local authorities’ discretion). Full details of the qualifying criteria can be found in our Discretionary Business Rates Relief Policy. The following reliefs are Discretionary:

  • Section 44A relief - discretionary relief for partly empty properties
  • Hardship relief 
  • Charitable rate relief (top-up relief)
  • Rate relief for not-for-profit organisations
  • Relief for Community Amateur Sports Clubs (top-up relief)
  • Section 69/Section 47 relief
  • Enterprise Zone relief
  • Local Newspapers' relief
  • Expanded Retail Discount
  • Nursery Discount

Some reliefs are automatically applied including:

  • Exempt buildings
  • Transitional relief
  • Revaluation Relief (Local Discretionary Scheme)

All the reliefs are subject to current legislation and may change in light of new Government decisions.

Detailed information

More information on eligibility criteria, amounts, timescales and how to apply for each relief, can be found below.

Registered Charities are entitled to relief from rates on 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.

You can download and read our Discretionary Business Rate Relief Policy. [PDF, 2MB]

 

Properties that have been empty for more than three months, or in the case of industrial properties, for more than six months, no longer receives relief from Business Rates.

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 they are then subject to 100% charge.

A 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.

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 period, the local authority has discretion in certain limited cases to award relief in respect of the unoccupied part.

Full details can be obtained from the Business Rates team.

There are details on s44a relief in our discretionary policy [PDF, 2MB] too.

Registered community amateur sports clubs (CASCs) can receive 80% rate relief.


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 visit the Inland Revenue Sports club site or call the Inland Revenue Sports Clubs Unit on 0300 123 1073.

In January 2020 statement the Government announced a £1,000 business rate discount for public houses with a rateable value of less than £100,000 for one year, from April 2020.

At Budget 2020, it was announced that the amount of award for pubs under this relief would increase from £1,000 to £5,000 in 2020/21.

The £5,000 relief is per eligible property, after other reliefs and exemptions are applied.

The relief is subject to the State Aid De Minimis levels, and ratepayers will be required to complete a declaration to the effect that receipt of the relief will not breach the de minimis regulations. The relief must be refused should the limits be breached.

Who qualifies for the public house relief?

To be eligible for this relief the pub should:

  • be open to the public
  • allow free entry other than when occasional entertainment is provided
  • allow drinking without requiring food to be consumed
  • permit drinks to be purchased at a bar

For the purpose of this relief, pubs are not any of the following:

  • restaurants
  • cafes
  • nightclubs
  • hotels
  • snack bars
  • guesthouses
  • boarding houses
  • sporting venues
  • music venues
  • festival sites
  • theatres
  • museums
  • exhibition halls
  • cinemas
  • concert halls and casinos

These lists are not exhaustive, and any properties used for other purposes will be considered on an individual basis.

How will a decision be made?

Where it is clear that the property is used wholly or mainly for one of the uses detailed in the first list, the relief will be automatically applied. Where it is not clear, ratepayers may wish to contact the council to discuss eligibility.

Please contact the Business Rates team at NNDR@scambs.gov.uk if you feel you meet the criteria but have not been awarded the relief.

The Government is providing funding to local councils so that they can provide a discount worth up to £1,500 to office space occupied by local newspapers. This discount was introduced in 2017 / 2018 and has now been extended to financial years 2024 / 2025.

This is up to a maximum of one discount per local newspaper title and per hereditament, and up to state aid limits.

The relief will be delivered through local authority discretionary discount powers (under section 47(3) of the Local Government Finance Act 1988) Eligibility criteria for this relief is set out in a guidance note: "The case for business rates relief for local newspapers", which can be obtained at Gov.uk

You can download and read our Discretionary Business Rate Relief Policy. [PDF, 2MB]

In the Spring Budget, the Chancellor announced that the Government would establish a £300 million discretionary fund over four years from 2017 / 2018 to support those businesses that face the steepest increases in their business rates bills as a result of the revaluation.

The total amount of funding to be allocated to our ratepayers is £894,000 over four years, in the following proportions:

  • 2017 / 2018 - £495,000
  • 2018 / 2019 - £241,000
  • 2019 / 2020 - £99,000
  • 2020 / 2021 - £14,000

For the 2020 / 2021 financial year there will be no set scheme. However the government's final allocation of £14,000 will be made available to those ratepayers who continue to be most affected by the 2017 / 2018 revaluation and find themselves in hardship.

In what circumstances might relief be awarded?

Ratepayers are invited to apply for relief where they have experienced an increase in Revaluation Value due to revaluation, subject to the following criteria:

  • The ratepayer must have had a rates liability on or before 31 March 2017
  • The property RV, or a combined total of all property RVs in the district, must be less than £200,000
  • The 2017 / 2018 charge must have increased by more than 10% due to revaluation.


Relief will generally not be awarded in the following circumstances:

  • National chains, groups, franchises, multi-nationals or any business operating over more than 5 hereditaments
  • those already in receipt of mandatory or discretionary rate relief
  • empty properties, unless exceptional circumstances apply
  • state funded organisations such as schools, hospitals etc.

Ratepayers that find themselves in hardship due to Revaluation but do not meet the criteria, may still be able to apply for some additional support.

An allocation of £50,000 has been put aside in 2017 / 2018 for this purpose.

Any applications for this relief must be able to demonstrate the negative impact of revaluation, any applications would be considered on a case by case basis.

Amount of award

The amount awarded will depend on the individual circumstances. However as a guide, the following principles will apply:

A) Where the 2017 / 2018 net rates increase is between 10% - 20% compared to the previous year, the total amount awarded will not normally exceed 5% of the net charge.

B) Where the 2017 / 2018 net rates increase is greater than 20% compared to the previous year, the total amount awarded will not normally exceed 10% of the net charge.

The relief is subject to the State Aid De Minimis levels and a signed declaration will be required on all applications.


How will a decision be made?

Every application will be considered on its merits and will need to be submitted in writing using the Council's application form.

All decisions for Revaluation Relief and Revaluation Hardship Relief will be made by the Finance and Staffing Portfolio Holder.

In the Spring Budget, the Chancellor announced a new relief scheme would be made available to those ratepayers facing large increases as a result of the loss of small business rate relief or rural rate relief.

The transitional relief scheme does not alter in light of changes in relief. As such, ratepayers losing some or all of their small business rate relief or rural rate relief may have large increases in their April 2017 bills.

Supporting small businesses relief has been introduced to assist those ratepayers who, after revaluation, find they have lost some or all of their small business or rural rate relief and have a large increase on their bill.

To support these ratepayers, the supporting small businesses relief will ensure that the increase per year is limited to the greater of:

  • A cash value of £600 per year (£50 per month). This cash increase ensures that ratepayers who for the 2016 / 2017 liability period either paid nothing or very small amounts, are brought into paying something,

or

  • the matching cap on increases for small properties in the transitional relief scheme.

We have already applied this relief to those that meet the criteria, in line with Government guidelines.

If you feel that you qualify for this relief but it is not showing on your bill, please contact the Business Rates Team.

Please note that since formally leaving the EU, State Aid has been replaced by Subsidy Control. Details of this scheme are still to be finalised by Central Government. Further details will be provided as they become available.

The local authority has discretion to give hardship relief in specific exceptional circumstances. You may be able to receive this relief if the business is suffering from unexpected hardship which is outside of normal risks associated with the business.

Hardship relief is granted at the discretion of the Council. This can reduce or remit the amount of business rates due, provided it is satisfied that:

  • The ratepayer would sustain hardship if it did not do so; and
  • It is reasonable for the Council to do so, having regard to the interests of its tax payers

For further information and a more detailed explanation of the circumstances in which Hardship Relief may be awarded as well as where relief would not be considered, please see our Discretionary Relief Policy [PDF, 2MB] document.

The Expanded Retail Discount scheme was initially available for the financial year 2020 to 2021 only. At the Budget on 3rd March 2021, the Government announced an extension to this scheme.

The original Retail Discount scheme was expanded by the Government in March 2020 in response to the Coronavirus, Covid-19. As well as hereditaments used wholly or mainly for retail purposes, the scheme was expanded to include the leisure and hospitality industries provided that these properties are used to provide in person services wholly or mainly for visiting members of the public.

The amount of relief for the 2021 to 2022 financial year will be as follows, after other reliefs and exemptions are applied:

  • 100% relief for the period 1 April 2021 to 30 June 2021; followed by
  • 66% relief for the period 1 July 2021 to 31 March 2022.

From 1 July 2021, the relief will be capped at the following rates:

  • £2m per business for those businesses that were required by law to close on 5 January 2021 as a result of coronavirus restrictions
  • £105,000 per business, for other eligible businesses

No ratepayer can exceed the £2million cash cap across all of their hereditaments in England, and the ratepayer must contact the billing authority to refuse the relief if this limit will be breached.

This cash cap applies at Group company level (holding companies and subsidiaries cannot claim up to the cash cap for each company) and also to organisations which, although not a company, have such an interest in a company that they would, if there were a company, result in its being the holding company.

In order to qualify properties must be occupied and used wholly or mainly for visiting members of the public for a qualifying purpose:

  • as a shop, restaurant, café, drinking establishment, cinema or live music venue
  • for assembly and leisure; or
  • as hotels, guest and boarding premises and self-catering accommodation. 

Businesses that have been instructed to close as part of containment measures will be treated as occupied for this relief.

To qualify for the relief, the hereditament should be wholly or mainly being used for the above qualifying purposes. Therefore, hereditaments which are occupied but are not used wholly or mainly for the qualifying purpose, will not qualify for the relief.

There are some businesses that will be excluded from the scheme, such as financial services (for example, banks, building societies, cash points, bureaux de changes, payday lenders, betting shops and pawn brokers); Medical services (for example, vets, dentists, doctors, osteopaths and chiropractors); Some other services (for example, estate agents, letting agents and employment agencies).

Further guidance regarding businesses which could qualify for this discount can be found within the Discretionary Relief Policy. [PDF, 2MB]

Where it is clear that a property is used wholly or mainly for one of the uses detailed, the relief may be automatically applied. Where it is not clear, ratepayers may wish to contact the council to discuss eligibility.

If you feel you meet the criteria but have not been awarded the relief automatically, please contact the Business Rates team on NNDR@scambs.gov.uk

On 18 March 2020, the Government announced the introduction of Nursery Discount, a measure to support Nurseries through the impact of the coronavirus, Covid-19, for the year 2020 to 2021 only. At the Budget on 3 March 2021, the Government announced an extension to this scheme.

This relief will apply to hereditaments occupied by providers of Ofsted’s Early Years Register that are wholly or mainly used for the provision of the Early Years Foundation Stage. There is no rateable value limit for ratepayers that may qualify. Where qualifying ratepayers occupy more than one property, they will be entitled to the relief for each eligible property.

Hereditaments which are occupied but not used wholly or mainly for the above qualifying purpose will not qualify for the relief.

Hereditaments that have closed temporarily due to the Governments advice on Covid-19 will be treated as being occupied for the purposes of this relief.

The amount of relief awarded in the financial year 2020 to 2021 will be 100% of the bill, after other reliefs and exemptions are applied.

For the financial year 2021 to 2022, the relief will be awarded as follows:

  • 100% relief for the period 1 April 2021 to 30 June 2021 followed by
  • 66% relief for the period 1 July 2021 to 31 March 2022. From 1 July 2021, the relief will be capped at £105,000 per business.

No ratepayer can exceed the cash cap across all of their hereditaments in England, and the ratepayer must contact the billing authority to refuse the relief if this limit will be breached.

Further guidance for this discount can be found within the Discretionary Relief Policy [PDF, 2MB].

 

Moving to an enterprise zone means you may receive up to 100% relief on business rates.

This relief is available to businesses that locate within the Cambridge Compass Enterprise Zone sites between April 2016 and March 2021. These sites are operated in partnership with the Cambridgeshire and Peterborough Combined Authority and the Ministry for Housing communities and Local Government.

The Enterprise Zones sites within South Cambridgeshire District Council are based within Cambridge Research Park, Waterbeach and Cambourne Business Park, with a further site at Northstowe. Please see the maps below:

 A map with the Waterbeach Growth area and Enterprise zone clearly outlined in red [JPG]

A map with the Northstowe Phase 1 Enterprise Zone clearly marked in blue [JPG]

A map with the Cambourne Growth area and Enterprise Zones clearly marked in red [JPG]

Should you wish to discuss moving onto one of the Cambridge Compass sites, contact details are as follows:

Cambridgeshire and Peterborough Combined Authority:
contactus@cambridgeshirepeterborough-ca.gov.uk
Phone: 01480 277180

South Cambridgeshire District Council: openforbusiness@scambs.gov.uk                                                                      
Phone: 01954 713465

Applications for Enterprise Zones

Applications for Enterprise Zone must be submitted in writing by the rateable occupier, using the Council’s application form.

For more information on the application process, email openforbusiness@scambs.gov.uk or contact us by phone on 01954 713465

For further information on eligibility criteria, amount and period of award please see our Discretionary Relief Policy. [PDF, 2MB]

For more information on the Enterprise Zone sites, premises & facilities on offer, please go to our Business Support and Advice page.

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 be 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 council also has discretion to give further relief on the remaining bill.

The 2016 Autumn Statement confirmed the doubling of rural rate relief from 50% to 100% from 1 April 2017. Local councils will be expected to use their local discount powers to grant 100% rural rate relief to eligible ratepayers from 1 April 2017. 

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.

View our District's Designated Rural Settlements list 2021-2022 [PDF, 1MB]

*'food shop' means a trade or business consisting wholly or mainly for the sale by retail of food for human consumption excluding confectionery and catering - in this context catering means any supply of food for consumption on the premises on which it is supplied and any supply of hot food for consumption off the premises.

In 2021 the Non-Domestic Rating (Public Lavatories) Bill came into force which gives public lavatories 100% relief from business rates.

The relief will not apply to toilets which are part of a larger business unit, for example, toilets in public libraries. It amends Part 3 of the Local Government Finance Act 1988 to ensure that, in relation to an eligible premises which consists wholly or mainly of a public lavatory - whether publicly or privately owned, free to use or those that charge for entry - the chargeable amount will be zero.

This provides, in effect, a 100% mandatory relief for eligible public lavatories in England and Wales. This bill has been applied retrospectively from 1 April 2020. 

If you wish to apply for this relief, please email nndr@scambs.gov.uk, quoting your business rates account number, to request an application form.

Eligibility Criteria with effect from 1 April 2017:

If the Ratepayer (the entity liable for rates at the property in question - an individual, organisation, trust, partnership or other):

  • occupies one property in England which has a rateable value of less than £15,000
  • occupies one main property in England with a rateable value (RV) of less than £15,000 and other additional properties provided that those properties have RV's of less than £2,899  with the total RV of all properties being under £20,000 will be eligible for relief on the main property only (one with the largest rateable value).
  • When you get a second property, which would normally take you out of the eligibility criteria for this relief, you’ll keep getting any existing relief on your main property for 12 months from the date of occupation of the additional property.

You can still get small business rate relief (on your main property only) after this if both the following apply:

  • None of your other properties have a rateable value above £2,899
  • the total rateable value of all your properties is less than £20,000

Ratepayers occupying only one property in England where the RV is above £14,999 but below £51,000 are not entitled to relief but the small business rate multiplier will automatically be used to calculate their liability

Ratepayers can only claim relief in respect of one property, which has to be occupied.

The criteria must be met on every chargeable day for which the relief is being claimed.

The small business rates multiplier for 2021 to 2022 is 49.9p.

Properties with a rateable value between £12,000 and £14,999 are entitled to relief which is on a sliding scale. The relief reduces by 1% for every £30 Rateable Value from 100% at £12,000 to 0% at £15,000.

If you are in receipt of SBR and a rateable value increases to more than £14,499 as a result of Rating List amendment, then the small business rate relief is cancelled from the date of the change.

Current relief scheme runs till the end of the current rating period - 31 March 2022.

Applying for Small Business Rate Relief

Please contact us for an application form if you think that you qualify for this relief.

Call us on 01954713021 or email NNDR@scambs.gov.uk.

We are able to consider backdated applications although these may, in some cases, be limited by legislation. 

Changes in circumstances

If you qualify for and have been awarded Small Business Rate Relief, certain changes in circumstances must be notified to the Council within 4 weeks of the change occurring. The changes which must be notified are:

  • The ratepayer takes up occupation of an additional property (relief will continue for 12 months after taking on an additional property which has a Rateable Value within existing relief criteria).
  • An increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the Council which granted the relief.

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