District Council
NNDR: an overview
- Non-Domestic Rates
- Rateable Value
- National Non-Domestic Rating Multiplier
- Transitional Arrangements
- Unoccupied Property Rating
- Partly-occupied Premises (section 44a)
- Charities and Discretionary Relief
- Rate Relief for new, non-agricultural business on previously agricultural land or buildings
- Small Business Rate Relief
- Rating Advisers
- Rate Relief for Businesses in Rural Areas
- Useful links
- Non-Domestic Rates
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 costs of local services. Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local councils according to the number of people living in the area. This money, together with revenue from council taxpayers, 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.
- Rateable Value
Apart from properties that are exempt from the 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 the rateable values, which are availalble on the website at www.voa.gov.uk. They are also availalble at:
District Valuer's Office
Spring Garden House
Princes Street
Swindon
Wiltshire
SN1 2HX
01793 581400
and
Salisbury District Council
Local Taxation Section
Pennyfarthing House
18 Pennyfarthing Street
Salisbury
Wiltshire
SP1 1HJ
01722 434222The 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 effect on 1 April 2005, the date was set as 1 April 2003.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 rate payer (and certain others who have an interest in the property) can also appeal against the value shown on the list 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 VOA website at www.voa.gov.uk or from your local valuation office.
The effect of successful appeals against values shown in the rating list that came into force on 1 April 2000 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 on the Department for Communities and Local Government website.
- 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 Goverment sets from 1 April each year for the whole of England. The Goverment normally changes the multiplier every year to move in line with inflation. By law, the mulitplier 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 revalutaion the same as before, plus inflation for that year. The current multiplier will be shown on the front of your bill.
- Transitional Arrangements
Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. To help pay the limits on the increases in bills after a revaluation , 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 multiplier). The scheme applies only to the bill based on a property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in rateable value due to those changes. Further information about transitional arrangements may be obtained from Salisbury District Council or on the Department for Communities and Local Government website.
- Unoccupied Property Rating
In general, there will be no Business rates to pay for the first three months that a property is empty. After that, an empty property rate of 50% of the bill that would have been due on the occupied property will be payable. Industrial buildings, listed buildings and small properties with rateable values less than £2,200, pay no empty property rates even after the first three months have expired.
- Partly-occupied Premises (section 44a)
Where a property is partly occupied for a short time, for example when a company is carrying out a phased move between premises, the council may award relief for the unoccupied part. This relief is given under Section 44a of the Local Government Finance Act 1988.
The Valuation Office will determine the rateable values of the occupied and unoccupied parts of a property. The rates payable on each part can then be worked out and relief is granted so that the ratepayer only pays the full rates for the occupied part plus 50% of the rates for the unoccupied part.
If an exemption applies to the unoccupied part then nothing is payable for that part. The relief applies only for the period of part-occupancy up to a maximum of one year.
To apply for relief under section 44a:
- your claim must be in writing, giving full details of why you are only partly-occupying the property and the dates in question, and accompanied by plans of the building with the unoccupied part clearly marked;
- the claim must be made at the start of the changes, in order that an inspection of the building can be made by the council's property inspector.
- Charities and Discretionary Relief
Charities are entitled to relief from rates on any non-domestic property which is wholly or mainly used for charitable purposes. Relief is given at 80% of the full bill. Local councils have discretion to give further relief on the remaining bill. Authorities also have the 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.
Non profit making sports clubs that are registered under the Community Amateur Sports Club (CASC) scheme can claim 80% mandatory relief on their rates. Please see www.cascinfo.co.uk for registration and information details. To make a claim for this business rate reduction simply contact the office on 01722 434222 and ask for a charitable relief form or download a copy of the
Charity relief form 30kb.- Rate Relief for new, non-agricultural business on previously agricultural land or buildings
This type of rate relief will no longer be available after 14 August 2006.
- Small Business Rate Relief (SBRR)
Small businesses with rateable values up to £10,000 may be eligible for a reduction in rates.
- All single occupied properties with rateable values of less than £5,000 will receive a reduction of 50%.
- All single occupied properties with rateable values between £5,001-£10,000 will receive relief on a sliding scale – 1% for every £100 rateable value until £10,000. If your rateable value is more than £10,000 you will not be entitled to a discount but if it is below £15,000 you will not have to pay the supplement levied for the relief.
- If a ratepayer has additional businesses with rateable values of less than £2,200, relief can still be applied if the combined rateable value of all the properties is less than £15,000.
- All business with rateable values of more than £15,000 will pay a small supplement to fund the relief.
The council will calculate the exact amount of your discount.
- Rating Advisers
Ratepayers do not have to 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) and the Institute of Revenues Rating and Valuation (IRRV) 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.
- 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 up to £7,000: any food shop with a rateable value of up to £7,000 and the sole pub and the sole petrol station in the village provided it has a rateable value of up to £10,500. 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 a rural village, with a rateable value of up to £12,000, if it is satisfied that the business is of benefit to the community and having regard to the interests of its council tax payers.
The local authority has powers to reduce or write off the amount a person is liable to pay for business rates, where it is satisfied that:
(a) the ratepayer would sustain hardship if the authority did not so; and
(b) it is reasonable for the authority to do so, having regard to the interests of the council tax payer, and
(c) the business is in a rural area.Please complete the
Hardship relief form 16kb and return to the address at the top of the page for further consideration. Should you require further guidance please contact the Local taxation office on 01722 434406 or email revs&bens@salisbury.gov.uk- Useful links
Things you can do:
Contact details:
Telephone:
01722 434222
Fax:
01722 434430
email:
revs&bens@salisbury.gov.uk...
Postal address:
Local Taxation Section
Pennyfarthing House
Pennyfarthing
Street
Salisbury
Wiltshire
SP1 1HJ
