Business rates (non-domestic rates) are charged on all businesses according to the rateable value of the property.
Although the Council collects this, the money goes to the government which re-distributes it in proportion to the adult population of an area. This means that areas with relatively few businesses don't lose out. Business rates are how users of non-domestic property contribute towards the cost of providing council services in the area, but rates are not a direct payment for services received.
Rates are normally paid by the occupier of a business - usually this is the owner-occupier or leaseholder. If the property is empty, the owner or leaseholder will be liable.
Every business, unless it is exempt, has a rateable value. The Council calculates your rate bill by multiplying your rateable value by the multiplier set each year by the government.
For 2008-2009, the multiplier is set at 46.2p. So if your rateable value is £10,000, the Council would multiply this by 46.2p and the bill for the year would be £4,620. The multiplier is 45.8p for the properties qualifying for Small Business Rate Relief.
This amount could be reduced by any transitional or other relief you may be entitled to. The amount could be increased by a transitional premium.
The business rating multiplier
The multiplier changes in line with inflation. This is so the amount collected in rates stays the same each year and the government can finance the same level of service from local councils.
The Valuation Office Agency, part of the Inland Revenue, fixes the rateable value of businesses. There is a revaluation every five years. The last one was on 1 April 2005.
The rateable value of a property reflects the annual rent that could have been charged on 1 April 2003. The values of all rated properties are shown in the local rating list. You can view the list on the Valuation Office website. Valuation Office
The value of a property may change if the circumstances of the property have changed. The ratepayer and others who have an interest in the property may also propose a change in the value.
If the ratepayer does not agree with the valuation, the matter will be referred to an independent valuation tribunal. Details on how to appeal against your rateable value are available on the Valuation Office website. Valuation Office You can now complete an online appeal form. If you do not have access to the internet, you can contact your local Valuation Office in Redhill on 01737 754000.
The property market normally changes a lot between revaluations. Transitional adjustments help phase in the effects of these changes. Increases can be phased in by 'transitional relief' and reductions by a 'transitional premium'.
The scheme introduced following the 2005 revaluation ensured individual rates bills did not change beyond certain limits when compared to the previous year.
For 2008-2009 the limits are 25% for increase and 15% for decreases on large properties of £15,000 or over; 25% for increases 60% for decreases on small properties less than £15,000. The transitional scheme was designed to ensure all properties will be out of transition in the final year of the list (2009 -2010). The Council automatically calculates the appropriate transitional adjustment, which is be shown on the bill. This Council also adds inflation after the increase or decrease, as well as 0.4% of your rateable value to pay for the small business rate relief - for those who do not qualify for rate relief.
Small businesses with a rateable value of up to £10,000 may qualify for a reduction in their bill. The cost of this relief is paid for by all other ratepayers. Other small businesses which qualify, with a rateable value of less than £15,000 but over £10,000, use the lower multiplier to work out their rate bill. If your business is eligible and fulfils all the conditions, you need to complete the Council's application form.
Charities and discretionary relief
Charities are entitled to 80% relief from the rates on property which is wholly or mainly used for charitable purposes. The Council can top this up by to 20% at its discretion. The Council can also grant up to 100% discretionary relief for a property if it is occupied by an organisation that is not set up to make a profit. More details and an application form can be found on the following link.
Follow the link below for details.
The rules for empty property relief have changed with effect from 1 April 2008. Empty properties are exempt from rates for the first three months after which the full charge is oayable. Some properties, for example factories and warehouses are exempt for up to six months before the full charge is payable. Small properties with a rateable value of less than £2,200 are exempt from paying empty property rates. More details can be found on the following link.
Important changes to empty property rates from 1 April 2008
