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 2010, the rateable value of a property represents its
annual open market rental value as at 1 April 2008. 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 2010 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 (0.433 for 2011/12) and the small
business non-domestic rating multiplier (0.426 for 2011/12). 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 applied each year to increases and decreases in bills
until the full amount was due (i.e. rateable value x
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 1 April 2010, transitional arrangements do not normally apply
to the part of a bill that related 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
£6,000. Relief declines in percentage terms on a sliding scale down
to 0% at £12,000. Please note that until 30 September 2012
the relief will be 100% for properties up to and including £6,000
rateable value, with tapered relief of between 100% and 0% for
properties with rateable values between £6,001 and
£12,000.
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 £2,600.
The rateable value of the property mentioned in a), or the total
rateable value of all properties mentioned in b), must be under
£18,000 outside London or £25,500 within London.
Relief can only be given on one property.
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 £12,000 and £17,999 (£25,499 in London) do not have to
contribute towards the relief and will have their bills calculated
using the lower multiplier.
Only one application needs to be made during the life of a five
year Valuation List.
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 (or six) month period
expires - examples include properties with a rateable value under
£2,600 in 2011/12 (formerly £18,000), listed buildings, ancient
monuments, 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.
For more details view our Mandatory
and discretionary rate relief page.
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 £8,500;
ii) any food shop with a rateable value of up to £8,500;
iii) the sole pub or 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 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 £16,500, 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.