Non-Domestic Rates

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.  The rates are pooled by central government and redistributed to local authorities as part of the annual formula grant settlement.  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 your local authority and other local authorities in your area.

Click on the following links to move around the page:

• Rateable Value
• National Non-Domestic Rating Multiplier 
• Transitional arrangements
• Empty properties
• Who is liable to pay the empty charge?
• Exemptions – property
• Exemptions – owners
• Exemptions – industrial property
• Partly occupied property
• Small Business Rate Relief
• Business rates - deferral of payments  
• Charitable and discretionary relief
• Relief for businesses in rural areas
• Rating Advisors 
• How do I pay my Business Rates?  
• Contact us                                                                            

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 Her Majesty's Revenue and Customs.  They draw up and maintain a full list of all rateable values on their website at www.voa.gov.uk 

The rateable value of your property is shown on the front of your bill.  This 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 circumstances change.  The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong.  Further information about the grounds on which appeals may be made and the process for doing so can be found on the VOA website given above, or from your local valuation office, details of which are below.

Liverpool Group Valuation Office Agency
72 Church Street
Liverpool
L1 3AY

Telephone 0151 802 1000

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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 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.  See small business rate relief for further details.

In the year of revaluation the multipliers are rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money for Government.  The current multipliers are shown on the front of your bill.

Previous years multipliers are listed in the table below.

Year	Multiplier	Small business multiplier
2005-06	42.2p	41.5p
2006-07	43.3p	42.6p
2007-08	44.4p	44.1p
2008-09	46.2p	45.8p
2009-10	48.5p	48.1p
2010-11	41.4p	40.7p

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Revaluation 2010 and Transitional Arrangements

All rateable values are reassessed every five years at a general revaluation.  The current rating list is based on the 2010 revaluation.  Five-yearly revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by one ratepayer reflects changes over time in the value of their property relative to others.

Revaluation does not raise extra money for Government.  Whilst the 2010 revaluation will not increase the amount of the rates collected nationally, within this overall picture, over a million properties will see their business rate liabilities reduced and some ratepayers will see increases.

For those that would otherwise see 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, there also have to be 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 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 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.

Further infomation about transitional arrangements and other reliefs may be obtained from Warrington Borough Council or the website www.businesslink.gov.uk

 

 

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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 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 Warrington Borough Council or by clicking Exemptions - property   Exemptions - owners

If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of this bill.

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Who is liable to pay the Empty Charge?

Liability to pay the empty charge falls upon the person entitled to possession of the whole hereditament – the 'owner'.

Once the property becomes occupied again (either in whole or part) then the occupier will become liable to a full charge at 100%.

The owner should note however that if the period of occupation is less than six weeks, then in deciding whether the property has been continuously unoccupied, it is deemed to have been unoccupied for that period. This means in effect that no further three months 'free period' is allowable if the property is occupied for less than six weeks either during the 'free period' or during a period subject to an empty rate charge. 

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Exemptions – property

Certain property may be exempt from empty rates. Exemption is appropriate in the following circumstances as prescribed by the Non Domestic Rating (Unoccupied Property) Regulations 1989 (as amended).

• The property has been empty for less than three months, or six months in the case of industrial property. Click Exemptions - industrial property for further information.
• The property has a rateable value less than £18,000.
• The owner is prohibited by law from occupation, or allowing the property to be occupied. 
• The property is kept vacant by reason of action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting the occupation of the property or to acquiring it. 
• The property is the subject of a building preservation notice as defined by Section 58 of the Town and Country Planning Act 1971 or is included in a list compiled under Section 54 of that Act (i.e. a Listed building). 
• The property is included in the Schedule of Monuments compiled under Section I of the Ancient Monuments and Archaeological Areas Act 1979.     

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Exemptions – owners

Certain owners are also exempt from unoccupied property rates:

• The owner is entitled to possession only in his capacity as the personal representative of a deceased person.
• There subsists in respect of the owner’s estate a bankruptcy order within the meaning of Parts VIII to XI of the Insolvency Act 1986.
• The owner is entitled to possession of the hereditament in his capacity as trustee under a deed of arrangement to which the Deeds of Arrangement Act 1914 applies.
• The owner is a company which is subject to a winding up order made under the Insolvency Act 1986 or which is being wound up voluntarily under that Act.
• The owner is entitled to possession of the hereditament in his capacity as liquidator by virtue of an order made under section 112 or section 145 of the Insolvency Act 1986.     
• From 1 April 2008, the owner is a company in administration within the meaning of paragraph 1 of Schedule B1 to the Insolvency Act 1986 or is subject to an administration order made under the former administration provisions within the meaning of article 3 of the Enterprise Act 2002 (Commencement No. 4 and Transitional Provisions and Savings) Order 2003
• From 1 April 2008, empty property which is held by a charity or community amateur sports club, where it appears likely that when next in use, it will be used for charitable purposes or for the purposes of the club.         

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Exemptions – industrial property

Prior to 1 April 2008, industrial property received a permanent exemption from empty property rates, if it was a 'qualifying' industrial hereditament.  After 1 April 2008 industrial property is exempt from empty property rates for a continuous period not exceeding six months, after which 100% of the occupied business rate is payable.  A qualifying industrial hereditament is a property, other than a 'retail' hereditament, in relation to which buildings comprised in the hereditament are:

• constructed or adapted for use in the course of a trade or business; and
• constructed or adapted for use for one or more of the following purposes, or one or more such purposes and one or more purposes ancillary thereto:
• • the manufacture, repair or adaptation of goods or materials, or the subjection of goods or materials to any process;
  • storage (including the storage or handling of goods in the course of their distribution);
  • the working or processing of minerals;
  • the generation of electricity.           

'Retail hereditament' means any hereditament where any building or part of a building comprised in the hereditament is constructed or adapted for the purpose of the retail provision of:

• goods, or
• services, other than storage for distribution services, on or from the hereditament.     

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Partly occupied property

Where a property is only partly occupied for a short time only, the council has the discretion to request that the valuation officer apportions the properties rateable value, between its occupied parts.

From 1st April 2008, the empty part of the property will receive a complete exemption from rates for the first three months it is empty, or for the first six months in the case of industrial property, after which 100% rates will become payable.

If the property qualifies for an exemption from rates when empty, the apportioned rateable values will continue to apply.

Full details can be obtained from Warrington Borough Council.

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Small business rate relief

This relief is only available to ratepayers who apply to their local authority and 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 properties mentioned in (b), must not exceed £17,999 outside London or £25,499 within London, on every 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. 

Ratepayers who satisfy these conditions will have the bill for their single or main property calculated using the lower small business non-domestic rating multiplier rather than the ordinary non-domestic rating multiplier that is used to calculate the liability of other businesses.

In addition, if the single 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.

If an application for relief is granted, provided the ratepayer's circumstances do not change, the application will not need to be renewed until the next revaluation of non-domestic premises, which happens every five years. Certain changes in circumstances will need to be notified to the local authority by the ratepayer (other changes will be picked up by the local authority). The changes which must be notified are:

(a) the ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief; 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.

Notification of these changes must be given to the local authority within four weeks of the day after the day the change happened. If this happens, there will be no interruption to the ratepayer's entitlement to the relief. However, failure to notify the authority within this timeframe will mean the ratepayer ceases to be entitled to the relief with effect from the day that the change happened. If they are still eligible, the ratepayer will be entitled to the relief again with effect from the day that they notify the local authority. A notification that the ratepayer has taken up occupation of an additional property must be by way of a fresh application for relief; notice of an increase in rateable value must be given in writing. 

Full details on the eligibility criteria and on how to apply for this relief are available from Warrington Borough Council.

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Deferred payment of 2009/10 rate liabilities

Ratepayers in 2009/10 were able to defer payment of 3% of their 2009/10 rates bill and, where applicable, 60% of the increase in that bill due to the ending of the 2005 rating list transitional relief scheme.  The right to apply for deferral ended on 31st March 2010.  For those ratepayers who applied for this scheme, the deferred amount to be collected in 2010/11 and 2011/12 will be included in the bills for each of those years respectively.

Two examples of what the scheme means in practice are as follows:

 

EXAMPLE 1 Standard, not in transition in 2008-09,not receiving reliefs in 2009-10 The ratepayer’s 2009-10 bill is £1,000. They can defer 3% of this amount or £30.  They therefore only have to pay £970 in 2009-10. £30 would be taken off their remaining 2009-10 instatement payments in equal amounts. The deferred £30 would be repaid £15 in 2010-11 and £15 2011-12 alongside the instalments for those years.

 

 

Example 2 In transition in 2008-09, not receiving reliefs in 2009-10   The ratepayer's final bill is £1,000. 3% of final bill = £30  Determining the transitional deferral The amount of the transitional relief received for 2008-09 was £365. The ratepayer can defer60% of this amount or 365 x (60/100) which equals £219 Determining the total deferrable amount The total deferrable amount for this ratepayer is £30 + £219 which equals £249 This ratepayer would pay £751 in £2009-10. £249 would be taken off their remaining 2009-10 instalment payments in equal amounts. The deferred £249 would be repaid £124.50 in 2010-11 and £124.50 in 2011-12 alongside the instalments for those years.

For further information see the factsheet.

Additional information provided by the government is available on the communities and local government website.

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Charity and Community Amateur Sports Club (CASC) Relief

Charities and registered CASCs are entitled to 80% relief where the property is occupied by the charity or the CASC, and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purpose of the CASC (or of that and other CASCs).  The local authority has discretion to give further relief on the remaining bill.

Non-Profit Making Organisation Relief

The local authority has discretion to give relief to non-profit making organisations.

Hardship Relief

The local authority has discretion to give relief in special circumstances.

Full details of these reliefs can be obtained from Warrington Borough Council.

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Relief for businesses in rural areas

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

The local council may decide to give up to 100% relief to any other business in such a rural village, with a rateable value up to £16,500, if it is satisfied that the business is of benefit to the community and having regard to the interest of council tax payers.

 

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Rating Advisors

Ratepayers do not have to be represented in discussions about their rateable value or their rate bills. Appeals against rateable values can be made free of charge. 
However, ratepayers who do not wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website www.rics.org) and the Institute of Revenues Rating and Valuation (IRRV - website www.irrv.org.uk) are qualified and regulated by rules of professional conduct designed to protect the public from misconduct.

Before employing a rating adviser, and particularly before employing one who is not a member of one of these bodies, you should satisfy yourself that he or she has the necessary knowledge and expertise, as well as appropriate indemnity insurance.

You should also be wary of false or misleading claims. We are aware of agents who do not explain, for example, that a reduction on rateable value may not necessarily lead to a reduction in the amount of rates you will have to pay. This is because there are overriding limits on how much rates bills can change from year to year under the transitional relief scheme.

Please be careful before entering into any contract and take advice if necessary before you do so. 

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How do I pay my Business Rates?

There are various ways in which you can pay your business rates - further information.

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Other help

You can find further details of help available to businesses during the recession at the Real Help Now Website

Contact Us

If you require more information please contact us

Tel: (01925) 443210 
Fax: (01925) 442333 
Email: Revenues&Benefits@warrington.gov.uk 
Write: Assistant Chief Executives Department, Revenues and Benefits Service, PO Box 5, Warrington, WA1 1BN. 

More information can be obtained by visiting the official government website: www.businesslink.gov.uk

Last updated 24/02/2010 15:33:27

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