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Business Rates - Further Information

 

This is a statutory service that deals with the administration, collection and enforcement of Business Rates.

 

Whilst Business Rates are collected by the District Council, the amounts payable are not set by us. We purely act as a collection agency for central government.
 
The main activities of the Council's Business Rates Services are;
  • The issuing of Business Rates bills.
  • Administration of relief's, exemptions and reductions to bills.
  • The taking of recovery action against people who don't pay their bills, or pay late.
  • Making payment arrangements with people who have difficulty paying their bill.

 

    What are 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. Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local authorities according to the number of people living in the area. 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.
 

    What is a Rateable Value?

Apart from properties that are exempt from 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 rateable values, available on their website at www.voa.gov.uk  The rateable value of your property is shown on the front of this 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 at 1st April 2008.

The valuation officer may alter the value if the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they believe it is wrong.
 
Further information about making appeals can be found on the VOA website or from the Wolverhampton Valuation Office, Crown House, Birch Street, Wolverhampton, WV1 4DS.

Successful appeals against values shown in the rating list that came into force on 1st 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.
 

    What is a 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. From 1st April 2005 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. The Government normally changes both multipliers every year in line with inflation. By law, the multipliers cannot go up by more than the rate of inflation apart from some minor adjustments to counteract losses from appeals and, in relation to the standard multiplier, to pay for small business rate relief. In the year of a revaluation it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year.
 

    What are 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 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 normally apply to the part of a bill that relates to any increase in rateable value due to those changes.

Further information about transitional arrangements and other reliefs may be obtained using the contact details below.
 

Do I have to pay if my property is empty? 

The Government has reformed empty property relief in order to provide a strong incentive to bring empty property back into use. This will help to increase the supply of premises to let, and so reduce business rents and improve the competitiveness of the UK. It will also bring forward brownfield sites for re-development and so reduce the need for new development on environmentally valuable greenfield land. The reforms to empty property relief have consequential impacts for the business rate liability of partly occupied properties that have been apportioned. South Staffordshire District Council is required by central Government to implement these changes.

 

Do I have to pay if my property is empty?

As of 1 April 2008, most property that has been empty for more than three months - or, in the case of industrial property, for more than six months - will no longer receive relief from the business rate.

After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate, unless it:

1.    Qualifies for the new zero rate provided by the Rating (Empty Properties) Act 2007.

From 1 April 2008 the business rate liability of empty property that is held by a charity and appears likely to be next used for charitable purposes, or that is held by a community amateur sports club and appears unlikely to be next used for the purposes of the club, will be reduced from 10% of the basic occupied rate to zero.

2.     Qualifies for an exemption from business rates under the National Non-Domestic Rate (Unoccupied Property) Regulations.

While the current permanent exemption for industrial property will be reduced to six months, the Government proposes to preserve the majority of the other existing exemptions unchanged. However, the Government is consulting on possible reforms to the exemption for empty property that is listed or subject to a building preservation notice; and on the possibility of extending the exemption from business rates for empty property held by companies in liquidation to that held by companies in administration.
 

Can I get my property taken out of the rating list altogether?

If your property is not capable of beneficial occupation - for instance, if it is in poor condition and cannot be economically repaired – the Valuation Office Agency may judge that it should be taken out of the rating list altogether. However, please be aware that if the state of your property is damaged for the purposes of avoiding the business rate, under new anti-avoidance legislation to be introduced by the Government the Valuation Office Agency will be required to disregard the change in the property's state when assessing its rateable value. So for instance, if the roof is removed from an empty property for the purposes of avoiding the business rate, it may be valued as if the roof had not been removed.

The Government is currently consulting on the detailed operation of these new anti-avoidance measures.

 

How will my Business Rates liability be affected if my property is only partly occupied?

If a property is only partly occupied, the Council has the discretion to request that the Valuation Office Agency apportioned the property's rateable value between its occupied and unoccupied parts.

At present, broadly speaking, the empty property rate applies to the empty part of an apportioned building and the occupied part. From 1 April 2008, as a consequence of the reforms to empty property relief, the empty part will receive a complete exemption from business rates for the first three months it is empty (or, if it is an industrial property, for the first six months). After the initial rate-free period expires, in most cases the apportionment will cease to have effect and the occupied business rate will apply to the whole property. This will ensure that occupiers can benefit from any occupied business rate relief to which they are eligible - such as small business rate relief - on the whole of the property, not just the occupied part. However, if the property would qualify for the new zero business rate or for an exemption from business rates when empty, the apportionment will continue to have effect and the owner will not be liable for business rates on the empty part.

 

Can I appeal against the changes in my Business Rates liability?

The changes in business rate liability arising from the reforms to empty property relief are not in themselves grounds for appeal. However, if you disagree with the rateable value that appears in the current rating list entry for your property, under the existing arrangements you may challenge it by making a 'proposal' against it to the Valuation Office Agency. Your rights of appeal are not affected by the reforms to empty property relief and you can contact this authority or the Valuation Office Agency for further information about the arrangements for making proposals.

 

    Rating Advisors

Ratepayers do not have to be 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 – see below) and the Institute of Revenues Rating and Valuation (IRRV - see below) 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.
 
External Link: Royal Institution of Chartered Surveyors
External Link: Institute of Revenues Rating and Valuation
External Link: Business Link
External Link: Valuation Office Agency
 
 
The Service Plan for Revenues & Benefits 2010/2011 
 
 
If you feel you have received a good service we would be pleased to hear from you.  However, if you are not happy with the service you have been provided, please contact Tracey Richards on telephone (01902) 696622 or e-mail mailto:t.richards@asstaffs.gov.uk to discuss any issues you may have.  After contacting us if you still feel that your enquiry has not been dealt with appropriately and wish to make a formal complaint, please click on this link Complaints about the Council.
 
 

Contacts

 

Business Rates Enquiries                                Revenues & Benefits                          
Telephone: (01902) 696664 South Staffordshire Council
Fax: (01902) 696630 P.O. Box 1644
Email: taxation@sstaffs.gov.uk Wolverhampton
  WV8 12F
   
 
 
 
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Tel: 01902 696000

Email: info@sstaffs.gov.uk