The five-yearly revaluation of commercial properties can result in a large increase in the rateable value. This in turn could lead to a higher business rate bill to be paid by the ratepayer. The Transitional Relief scheme helps phase in an increase to a bill by limiting the amount that it can be increased by. Similarly, if a property’s rateable value falls after the revaluation, then the amount that the bill can be reduced by is subject to the transitional scheme so that large reductions are also phased in.

These limits continue to apply to annual increases and decreases until the full amount is due (rateable value x the multiplier)

Your annual bill will be automatically adjusted to take in any transitional relief where it applies to your property so you do not need to apply for it.

From 1 April 2005 central government introduced the Small Business Rate Relief (SBRR) scheme .

From 1st April 2010 a small business is regarded as one which has a rateable value of less than £18,000. (£15,000 for period 01/04/2005 to 31/03/2010)

To achieve this two multiplier amounts were introduced, a higher one and lower one and the difference between the two multipliers is known as the Small Business Rate Supplement. Money collected from ratepayers paying the supplement is used to fund the SBRR scheme.

The relief granted varies depending on the rateable value of the property.  If the rateable value is below £6,000 the relief allowed is 50%, then declines on a sliding scale to 0% on properties that have a rateable value of between £6,000 to £11,999. For properties whose rateable value is between £12,000 and £17,999 there is no relief but ratepayers do not have to pay the supplement and only pay the lower poundage rate.

You need only apply once for the property concerned during each 5 year rating list and this application can be made up to 6 months before the start or 6 months after the end of the 5 year period.

From 1 October 2010 for a period of 24 months to 30 September 2012 the relief allowed to small businesses was increased. All eligible businesses with a rateable value up to £6000 now receive 100% relief , those with a rateable value between £6,000 and £11,999 receive relief from 100% down to 0% on the sliding scale. Those business with a rateable value between £12,000 and £17,999 continue to pay the lower poundage rate and no supplement.

This is due to be extended for a further 6 months to 31st March 2013 following a recent government announcement. Legislation has still to be passed.

Registered Charities and Community Amateur Sports Clubs are eligible to apply for 80% relief for properties occupied by the charity or club and being used for that purpose. Application forms can be obtained through a link on the right of this screen.

Local authorities have the discretion to grant relief to non-profit making organisations where membership is not restricted. These tend to be those of a religious or educational nature, or run for the good of the local community.

A review of all discretionary relief awards is carried out periodically and customers will be notified in writing. They will all be invited to renew their applications  and advised of what they will need to provide at that time.

If a property is only partly occupied, a certificate (S44a) can be obtained to allocate occupied and empty property values thereby reducing a ratepayer’s bill. However, this relief is awarded at the discretion of the local authority.

If a business is suffering financial hardship we may be able to reduce the business rates. The local authority has discretion to grant hardship relief in certain special circumstances.

The Council would consider whether hardship would be sustained if the authority did not provide relief. It must also be determined that if the relief is not granted, and the business closes, it will be detrimental to the local community by way of a loss of a unique service provided, or the employment of local residents.

The Council has to determine these factors as 25% of the relief is funded by local taxpayers. This relief can be awarded to any ratepayer whether they are paying occupied or empty property rates and each case is treated on its own individual merits.

Applications must be made in writing and sent in with trading accounts for the last three years as proof of your financial circumstances. Simple loss of trade due to the economic climate would not normally be a reasonable basis for a claim.

If you would like to enquire further please contact the Business Rate Team.