Business Rates
The national
non-domestic rates (otherwise known as Business Rates) collected
by Allerdale Borough Council are paid over to the
Government and then redistributed to billing authorities and major
precepting authorities. Allerdale's share of this redistributed
rate income, together with income from its council tax payers,
revenue support grant provided by the Government and certain other
sums, is used to pay for the services provided by us and
the other local authorities in this area.
Direct Debit instructions for payment of
business rates can be set up securely online. More information and
a link to the online direct debit form can be found
on the
business rates direct debit
page.
Rateable Value
The rateable value of non-domestic property is
fixed in most cases by an independent valuation officer of the
Valuation Office Agency. All non-domestic property is revalued
every five years. From 1 April 2005, the rateable value of a
property represents its annual open market rental value as at 1
April 2003. The next revaluation is due to take effect on 1 April
2010. The values of all property in respect of which rates are
payable are shown in the local rating list, which you can view
on the Valuation Office Agency website at
http://www.voa.gov.uk/ (instructions
on using the Valuation Office website are given at the bottom of
this page). A copy may also be inspected at the Valuation Office,
Rufus House, Carlisle, CA3 8TJ or at Allerdale House, Workington,
CA14 3YJ.
The valuation officer may alter the value if he
believes that the circumstances of the property have changed. The
ratepayer (and certain others who have an interest in the property)
may also in certain circumstances propose a change in value. If in
any case the ratepayer and the valuation officer do not agree, the
matter will be referred as an appeal to a valuation tribunal.
Successful appeals against values shown
in the rating list that came into force on 1 April 2005 will
normally be backdated to that date, although there are exceptions
to this. Further information about these arrangements may be found
on the VOA website.
National non-domestic rating multiplier
The business rates bill is worked out by
multiplying the rateable value of the property by the appropriate
multiplier. There are two multipliers; the standard
non-domestic rating multiplier (0.462 for 2008/9) and the small
business non-domestic rating multiplier (0.458 for 2008/9). The
former is higher in order to pay for the small business rate
relief. The multipliers are set each year by the Government
and cannot (except in a revaluation year) go up by more than the
rate of inflation.
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 increases in
bills. To help pay for the limits on increases in bills, there also
have to be limits on reductions in bills. Under the transition
scheme, limits continue to apply each year to increases and
decreases in bills until the full amount is due (i.e. rateable
value times multiplier). The effects of the current transitional
relief will be phased out by 31 March 2009.
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 1 April 2005, transitional arrangements will
not normally apply to the part of a bill that relates to any
increase in rateable value due to those changes.
Small Business Rate Relief
This is available at a rate of 50% for ratepayers who
occupy a single business property with a rateable value of up to
£5,000. Relief declines in percentage terms on a sliding scale down
to 0% at £10,000.
The relief is only available to ratepayers with either;
a) One business property, or
b) One main business property and other additional properties
provided all of the other properties have rateable
values less than £2,200.
The rateable value of the property mentioned in a), or the total
rateable value of all properties mentioned in b), must be under
£15,000 outside London or £21,500 within London.
Relief can only be given on one property.
For properties which are newly brought into the rating list, the
relief can only be given where the effective date used was 1st
April of the relevant rating year. If the effective date was after
1st April, relief cannot be given until 1st April of the following
year.
The scheme is funded through a supplement on the rate bills of
those businesses not eligible for the relief i.e. their bill is
based on the higher multiplier. Properties with rateable values
between £10,000 and £14,999 (£21,499 in London) do not have to
contribute towards the relief and will have their bills calculated
using the lower multiplier.
Applications for the period 1 April 2007 to 31 March 2010 must
be made by 30th September 2010.
You can download
guidance notes and an application form further down the
page.
Unoccupied property rating
Once a property becomes empty, the first three
months are exempt from rating (six months in the case of an empty
industrial property).Thereafter, the full 100% rates are
payable. There are certain types of empty property where
no rates are payable even after the three month period expires -
examples include listed buildings, ancient monuments, small
properties with rateable values of less than £2,200, those
formerly occupied by companies in administration or a bankrupt
person, properties owned by charities or community amateur
sports clubs, those where occupation is prohibited by law and those
where the owner is the personal representative of a deceased
person.
Charitable 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 rate bill
or of the transitional bill where the transitional arrangements
apply. Registered Community Amateur Sports Clubs (CASC) are
entitled to 80% relief where the property is occupied by
the charity or club, and is wholly or mainly used for
charitable purposes or as a registered CASC.
Billing authorities have discretion to remit
all or part of any rate bill in respect of the remaining 20% of a
charity or CASC's bill on such property.
Authorities also have discretion to remit all
or part of any rate bill in respect of property occupied by certain
bodies not established or conducted for profit.
Rate relief for businesses in rural areas
Certain types of business in rural villages,
with a population below 3000 may qualify for rate relief of 50%.
Businesses that qualify for this relief are as follows;
i) the sole general store or the sole post
office in the village, provided it has a rateable value of up to
£7,000;
ii) any food shop with a rateable value of up
to £7,000;
iii) the sole pub or 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 properties.
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 £14,000, if it is satisfied that the
business is of benefit to the community and having regard to the
interests of its council tax payers, who would have to contribute
towards the cost of giving such relief.
Valuation Office website instructions
To check a property in Allerdale, you can
search by postcode or local authority from the
Valuation Office website. To
search by local authority, follow these instructions:
(1) Click the 'Rating Lists' link (right of
screen)
(2) Select the rating year list
required
(3) Enter Allerdale in the 'Billing/Local
Authority' search box
(4) Click the Allerdale link
(5) You can then use the search page to enter
property details, then click the 'Find' button.