How you can reduce your business rates

There are circumstances when you may qualify for a reduction in your business rates if one of the following applies:

Rate relief for charities

Mandatory:

Where a property is occupied by a charity and is used for charitable purposes then mandatory rate relief can be applied for. If granted this will be a reduction of 80% of the full charge, leaving the charity with the remaining 20% to pay.

In the case of an unoccupied property, where the ratepayer is a charity and it appears that when next occupied the property will be used for charitable purposes, then mandatory rate relief can be applied for. If granted this will be 100% of the empty charge.

Discretionary:

In addition to the mandatory relief described above, we may also grant discretionary relief in the following circumstances:

Where the 80% mandatory relief has been granted -

and the property is used for charitable purposes the Council may remit all or part of the remaining 20% of a charity's bill.

Where mandatory relief has not been granted -

An organisation that is not a registered charity may also claim relief, provided it is not established or conducted for profit and has a similar charitable status. The Council has the discretion to remit all or part of any rate bill in respect of a property occupied by such bodies.

For further information, please contact the business rates service using the contact details on the left hand side of this page.

Hardship relief

Where a ratepayer would sustain hardship through payment of the rate, we may grant relief where it would be reasonable to do so after considering the interests of the council taxpayers. If you wish to apply for hardship relief, please contact the business rates service using the contact details on the left hand side of this page.

To apply for relief a letter must be submitted to the Strategic Director of Finance setting out your reasons for applying for the relief. Two years of  accounts must be given to show the financial state of the business. The application will then be submitted for consideration and you will be advised of our decision.

Partly occupied properties

Where a ratepayer partly occupies a property then he may apply to the Valuation Office for the property to be split into two or more assessments. 

or

If the part of the property is unoccupied for a short period (with the attention of re-occupation in the future) then the ratepayer can apply to the Council for relief under Section 44A. If you think relief is appropriate, please contact the business rates service using the contact details on the left hand side of this page.

Rate relief in rural settlements

Mandatory:

The ratepayer of a sole shop, general store or post office in a settlement appearing on the Councils rural settlement list is entitled to rate relief, on occupied rate, if it is the only such shop, store or post office in that settlement and its rateable value is £8500 or less. Relief is also available for a sole petrol filling station or public house where the rateable value is £12500 or less. Relief is given at 50% of the full rate bill, or the transitional bill where transitional arrangements apply.

Discretionary:

The council can remit all or part of the remaining 50% if rural rate relief has already been granted. We can also remit all or part of rate bills on other properties in a settlement which are on the rural settlement list if the rateable value is £14,000 or less and we are satisfied that the property is used for a purpose that benefits the local community. The threshold will increase to £16,500 with effect from 1 April 2010.

For further information, please contact the business rates service using the contact details on the left hand side of this page.

Small business rate relief

Small business rate relief was introduced with effect from 1st April 2005.

The relief is currently available to ratepayers who fulfil the following criteria:

• The property has a rateable value of less than £18,000
• The property is occupied
• The ratepayer has one property in England
• Or has one main property in England and other additional properties, providing the additional properties do not have individual rateable values of £2,600 or more, and the combined rateable value of all the properties does not exceed £18,000

All eligible ratepayers will have their liability calculated using the small business multiplier. If the property has a rateable value of below £6,000 they will also receive a 100% rate relief on their liability. For properties with a rateable value of £6,000 up to £11,999 they will receive relief on a sliding scale.

With effect from 1 April 2012 the one property criteria is removed for properties with rateable values of £12000 to £17999 and, provided the property is occupied, liability will be calculated using the small business multiplier but there will be no percentage reduction.

Since 1 April 2007, ratepayers have been required to apply for the relief only once unless their circumstances change. The application must be submitted to the local authority within six months of the end of the valuation period to which it relates.

Should you require further information please contact the business rates service using the contact details on the left hand side of this page.

Last updated: 26/04/2012