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Who has to pay Business Rates?|
How is the business rate calculated?|
What is the rateable value and how can I find out what mine is?|
How can I appeal against my rateable value?|
What happens if my rateable value changes?|
The description of my property says "Shop and Premises". What does "Shop…. and Premises" refer to?|
Do I have to employ a rating adviser to appeal against my rateable value?|
What are the transitional arrangements?|
Do I qualify for Small Business Rate Relief?|
What will happen if I don’t pay?|
What Should I do if I Move?|
Are all businesses rateable?|
What happens if my property is left unoccupied?|
Working from Home|
Occupied Properties: The person or company that occupies the premises needs to pay the business rates. Sometimes the landlord of the property may charge the occupier a rent that also includes an amount for the business rates. However it remains a private matter between the landlord and the occupier to decide who is going to make payment, however the bill will remain in the name of the occupier, and if it is not paid, action will be taken against the occupier, not the landlord, to recover the amount due.
Unoccupied Properties: The person or company that has the right to occupy the property needs to pay any charge that is due (e.g. the leaseholder, tenant or the freeholder). If a tenant moves out of a property but still holds the lease, the tenant remains liable to pay any unoccupied rate charge that becomes due until the expiry of the lease. If however the tenant’s lease ends, the landlord will be liable for the charge.
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We work out your bill by multiplying the rateable value of your property by the appropriate rate multiplier, which the Government set each April.
For example, the rate poundage for 2011/2012 is 43.3 pence in the £. If your rateable value was £10,000 we would multiply this by 43.3 pence and the amount you would have to pay for the year would be £4,330.00.
The amount quoted in the example may be subject to any transitional arrangements that may apply to the property and does not include any entitlement to Small Business Rate Relief which the occupier may be entitled to apply for.
All business properties have a rateable value, which is determined by the Valuation Office Agency which is part of HM Revenues and Customs.
The office that deals with the Bournemouth area is at:
Valuation Office Agency
HM Revenues and Customs
Holland House
Oxford Road
Bournemouth
BH8 8EF
03000 501501
www.voa.gov.uk|
All rateable Values are reassessed every 5 years, the most recent revaluation having taken place on 1 April 2010. The Valuation Office Agency draws up and monitors a full list of all rateable values which are available on the Valuation Office Agency website.
All business properties have a rateable value, which is determined by the Valuation Office Agency which is part of HM Revenues and Customs and are available on the Valuation Office Agency Website.
The Valuation Office Agency may change the rateable value of a property if they feel that circumstances have changed since the last valuation. The business ratepayer (and other parties who have an interest in a specific property) may also propose changes to the assessment.
In cases where the Valuation Office Agency and a business ratepayer are unable to reach agreement about a change in rateable value, the matter can be referred as an appeal to a Valuation Tribunal.
Information about the circumstances, which may require a change of rateable value, and how to apply may be obtained from:
The Valuation Office Agency
Telephone: 03000 501501
If you submit a request for a change in rateable value, your existing bill must be paid as detailed on your account. Any necessary adjustments will be made when we are notified of the Valuation Officer’s decision.
If the Valuation Office Agency amends your rateable value, they will notify you of the change in writing. We will recalculate your bill and work out the new amount you have to pay. If your bill is subject to transitional arrangements you may find that a change in the rateable value of your property following an appeal makes no difference to the amount you pay.
If you submit a request to the Valuation Officer for your rateable value to be changed, you must continue to pay the instalments shown on your bill until a new value is agreed. Any amounts, which have been overpaid, will be refunded to you and will be subject to interest providing the Council has not obtained a liability order at the Magistrates Court for non-payment of the business rate.
The vast majority of business properties have "…. and Premises" after the main description of the property, i.e. "Shop and Premises" or "Office and Premises". The "…. and Premises" refers to perhaps a storage area or a cloakroom facility used in connection with the business property and does not refer to any part of the property used for domestic living accommodation.
You do not have to be represented in discussions about your rateable value. Appeals against rateable values can be made free of charge. However, if you do wish to be represented you should be aware that the members of the Royal Institution of Chartered Surveyors and the Institute of Revenues Rating and Valuation 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.
Following the introduction of business rates on 1st April 1990, many ratepayers faced large increases in the amount they would have to pay, whilst others anticipated considerably reduced bills.
To cushion the blow for businesses facing large increases, the Government introduced legislation to limit the amount the business rate could go up. This scheme, known as transitional relief, is financed by also placing a limit on the amount that rates can go down.
This phasing scheme recommences with each 5 yearly revaluation of business properties.
The current revaluation came into effect on 1 April 2010 and ends on 31 March 2015. The transitional arrangements may apply for the full 5 year period, capping both increases & decreases, however many properties will phase out of these arrangements within one or two years.
The scheme applies only to the bill based on a property at the time of revaluation. If there are any changes to the 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 these changes.
Special rules apply when rateable values change or existing properties are merged or split. Further information about transitional arrangements may be obtained from the Council.
There is no need for a ratepayer to apply for the transitional arrangements as these are calculated automatically and any entitlement will be shown on the bill.
To access further information on these arrangements, go to www.voa.gov.uk|
and enter transitional arrangements in the 'search with help' area.
1 April 2010 to 30 September 2010 - 50% Small Business Rate Relief
1 October 2010 to 31 March 2013 - 100% Small Business Rate Relief
1 April 2013 to 31 March 2015 - 50% Small Business Rate Relief
Bills will be calculated using the lower rate multiplier as set by the Government for each financial year.
1 April 2010 to 30 September 2010 - Small Business Rate Relief decreasing between 50% and 0%.
1 October 2010 to 31 March 2013 - Small Business Rate Relief decreasing between 100% and 0%.
1 April 2013 to 31 March 2015 - Small Business Rate Relief decreasing between 50% and 0%.
(i.e. the lower the rateable value the greater the relief).
As notifying the billing authority of these changes, within 4 weeks starting on the day after the date of change, is a condition of entitlement, failure to notify the billing authority will mean the ratepayer would no longer be entitled to the relief. If the ratepayer notifies the billing authority after the 4 week period, the ratepayer would lose relief from the day after the date of change until the day on which the billing authority is notified.
If you miss an instalment you will get a reminder notice giving you 7 days to bring your payments up to date.
If you do not bring your payments up to date or fall behind again later, you will have to pay the full outstanding balance on your account.
If you do not pay the outstanding balance, a summons will be sent to you which means that costs will be added to your account.
After sending a summons, we will ask the Magistrates Court to issue a liability order which can be sent to a bailiff if you do not make a payment arrangement with us or you fail to make the payments you have promised. If your case is passed to a bailiff, more costs will be added to your account.
If you are having difficulties in paying your business rates, please contact us as soon as you can so that we can discuss payment options with you.
Broadly, the Council require the following information:
The information will be used to determine the extent of your liability and, possibly, any exemptions or reliefs that you may be entitled to.
Generally, business rates are payable on most commercial properties like shops, offices and hotels. Self-catering accommodation such as holiday homes are also liable for business rates where they are available for use by short stay guests for 140 days or more per year.
There is no liability to pay business rates on the following properties:
From 1 April 2008 the law regarding empty property rate has changed. Previously an empty property that did not qualify for an exemption benefited from being charged at a zero rate for the first three months followed by a 50% charge. From 1 April 2008 the full business rate will be payable to all properties that have been empty for three months or more, or six months in the case of industrial and warehouse property.
The new limited exemption period will run from the date the property became empty and not the date the law changed so properties that have already had the benefit of the exemption period do not benefit from a further exemption from the 1 April 2008.
The Government has announced that it has reformed empty property relief in order to provide a strong incentive to bring empty property back into use. The Government hopes this will help to increase the supply of premises to let, and so reduce business rents and improve the competitiveness of the UK, as well as bringing forward brown field sites for re-development and so reduce the need for new development on environmentally valuable greenfield land.
Please be aware that these changes to empty property rates are due to Government legislation and the Council has no discretion in relation to the new charges.
So what will this mean for my rates liability?
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 rates. After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate.
The new limited exemption period will run from the date the property became empty and not the date the law changes so properties that have already had the benefit of the exemption period do not benefit from a further exemption period from the 1 April 2008.
Are there any exemptions to this charge?
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:
If the following insolvency or debt administration situation exists:
If you work from home it is possible that the part of your property used for work should be assessed for business rates, while the rest of your property remains assessed for Council Tax.
The Valuation Office Agency is responsible and not the Council to decide if your property should be assessed for business rates for the home working part of your property. The Valuation Office Agency will consider the following:
If you want to find out if your property should be assessed for business rates please contact the Valuation Office Agency at: