NNDR Explanatory Notes
Non-Domestic Rates, or Business Rates,
collected by local authorities are the way that those who occupy
non-domestic property contribute towards the cost of local
services. Under the business rates retention arrangements
introduced on 1 April 2013, the Council keeps a proportion of
the business rates paid locally. This provides a direct financial
incentive for the Council to work with local businesses to create a
favourable environment for growth as the Council will benefit from
growth in business rates revenues. The 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 the Council and other local authorities in your
area.
Rateable Value
Apart from properties that are exempt from
Business Rates, each non-domestic property has a rateable value
which is set by the valuation officers of the Valuation Office
Agency (VOA), an agency of HM Revenue & Customs. they draw up
and maintain a full list of all rateable values, available on their
website at http://www.voa.gov.uk/. The rateable
value of your property is 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 effect on 1st April 2010 , this
date was set as 1st April 2008 . The valuation officer may alter
the value if 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 in the list if they believe
it is wrong. Further information about making appeals can be found
on the VOA website or from your local valuation office at Regent
Court, 14-17 George Road, Edgbaston, Birmingham B15 1NU (email
:ratingcentral@voa.gsi.gov.uk,
telephone 03000 5010501).
Click here to go to the Valuation Office
Website
National Non-Domestic Rating Multiplier
The local authority works out the Business
Rates bill by multiplying the rateable value of the property by the
appropriate multiplier. There are two multipliers; the standard
non-domestic rating multiplier and the small business non-domestic
rating multiplier. The former is higher to pay for small business
rate relief. The Government sets the multipliers for each financial
year for the whole of England . except in the City of London, the
Government sets the multipliers for each financial year for teh
whole of England according to formulae set by legislation.
Between revaluations the multipliers change each year in line
with inflation and to take account of the cost of small business
rate relief. In the year of a revaluation the
multipliers are rebased to account for overall chnages to total
rateable value and to ensure that the revaluation does not raise
extra money for the Government. The current multipliers are
shown on the front of the rate bill.
Click here to
see a full list of Rating Multipliers
All rateable values are generally reassessed
every five years at a general revaluation to ensure bills paid by
any one ratepayer reflect changes over time in the value of their
property relative to others. The current rating list is based on
the 2010 revaluation. Subject to royal assent being granted to the
Growth & Infrastructure Bill, the next revaluation will be
postponed until 2017 to provide greater stability for businesses to
encourage economic growth. Five-yearly revaluations will continue
from 2017. Revaluation does not raise extra money for Government.
The Government’s Written Ministerial Statement on the postponement
can be found at the following link:
http://www.publications.parliament.uk/pa/cm201213/cmhansrd/cm121112/wmstext/121112m0001.htm.
For those ratepayers who would otherwise have
seen significant increases in their rates liability, the Government
has put in place a £2 billion transitional relief scheme to limit
and phase in changes in rate bills as a result of the 2010
revaluation. To help pay for the limits on increases in bills,
there were also limits on reductions in bills. Under the transition
scheme, limits continue to apply to yearly increases and decreases
until the full amount is due (rateable value times the appropriate
multiplier). The scheme applies only to the bill based on a
property at the time of the revaluation. If there are any changes
to the property after 1st April 2010, transitional arrangements
will not normally apply to the part of a bill that relates to any
increase in rateable value due to those changes. Changes to your
bill as a result of other reasons (such as because of changes to
the amount of small business rate relief) are not covered by the
transitional arrangements. The transitional arrangements are
applied automatically and are shown on the front of this bill.
More information on revaluation 2010 can be
found at http://www.voa.gov.uk
Click here for
more information about Transitional Arrangements
Unoccupied Property Rating
Business rates will not be payable in the
first three months that a property is empty. This is extended to
six months in the case of certain industrial properties. After this
period, rates are payable in full unless the unoccupied property
rate has been reduced by the Government by order. In most cases,
the unoccupied property rate is zero for properties owned by
charities and community amateur sports clubs. In addition,
there are a number of exemptions from the unoccupied property rate.
Full details on exemptions can be obtained from the local
authority. If the unoccupied property rate for the financial year
has been reduced by order, it will be shown on the front of this
bill.
The Government is introducing a new temporary
measure for unoccupied new builds from October 2013. Unoccupied new
builds will be exempt from unoccupied property rates for up to 18
months (up to state aid limits) where the property comes on to the
list between 1 October 2013 and 30 September 2016. The 18 month
period includes the initial 3 or 6 month exemption and so
properties may, if unoccupied, be exempt from non-domestic rates
for up to an extra 15 or 12 months.
Click here more information about rating for
Unoccupied Properties
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 Bedford Borough Council.
Click here for more information about rating
for Partly Occupied Properties
Small Business Rate Relief
Ratepayers who are not entitled to another
mandatory relief or are liable for unoccupied property rates and
occupy a property with a rateable value which does not exceed
£17,999 outside London or £25,499 in London will have their bill
calculated using the lower small business non-domestic rating
multiplier, rather than the national non-domestic rating
multiplier. In addition, generally, 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. However,
until 31 March 2014 the Government has doubled the usual level of
relief.
This percentage reduction (relief) is only
available to ratepayers who occupy either-
(a) one property, or
(b) 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 the properties
mentioned in (b), must not exceed £17,999 outside London or £25,499
in London on each 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.
An application for Small Business Rate Relief
is not required. Where a ratepayer meets the eligibility criteria
and has not received the relief they should contact their local
authority. Provided the ratepayer continues to satisfy the
conditions for relief which apply at the relevant time as regards
the property and the ratepayer, they will automatically continue to
receive relief in each new valuation period. Certain changes in
circumstances will need to be notified to the local authority by a
ratepayer who is in receipt of relief (other changes will be picked
up by the local authority).
The changes which should be notified are-
(a) the ratepayer taking up occupation of an
additional property, and
(b) 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.
Click here for more information about Small
Business Rate Relief
Charity and Registered Community Amateur Sports Club
Relief
Charities and registered CASCs are entitled to
80% relief where the property is occupied by the charity or club
,and is wholly or mainly used for charitable purposes of the
charity (or of that and other charities) or for the purposes of the
club (or that and other clubs). The local authority has discretion
to give further relief on the remaining bill. Full details can be
obtained from the local authority.
Click here for more information about
Charitable Relief
Non-Profit Making Organisation Relief
The local authority has discretion to give
relief to Non-Profit Making Organisations. Full details can be
obtained from Bedford Borough Council
Click here for more information about relief
for Non-Profit Making Organisation
Local Discounts and Hardship Relief
The local authority has discretion to give
relief in special circumstances. Full details can be obtained from
Bedford Borough Council
Click here for more information
about Local Discounts and Hardship Relief
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 council 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 Bedford Borough
Council.
Click here for more information about Rural Rate Relief
Rating advisers
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 -
website http://www.rics.org/ and the Institute
of Revenues Rating and Valuation (IRRV - website http://www.irrv.org.uk/ are qualified
and are regulated by rules of professional conduct designed to
protect the public from misconduct. Before you employ a rating
adviser, 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.