Business Rates (NNDR)

Business Rates (NNDR)

Non-Domestic Rates

Non-Domestic Rates are collected by billing authorities (district and London borough councils, the Common Council of the City of London, the Isle of Wight Council and the Council of the Isles of Scilly) are, subject to special arrangements for the City of London, paid into a central pool and redistributed to billing authorities and major precepting authorities. Your authority's share of
redistributed rate income, together with income from its council taxpayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your authority and other local authorities in your area.

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 1st April 2000, the rateable value of a property represents its annual open
market rental value as at 1st April 1998. From the 1st April 2005, the rateable value of a property represents its value as at 1st April 2003. The values of all property, in respect of which rates are payable to your authority, are shown in the local rating list, a copy of which may be inspected at the Valuation Office, 34 Southway, Colchester, CO2 7BB or on the Valuation Office Agency website or Braintree District Council.

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. The effect of successful proposals or appeals against new rateable values for 1st April 2000 will be backdated to 1st April 2000 only if they were made by 30th September 2000. Appeals made in the next six months will be backdated to no earlier than 1st October 2000. Appeals made in a subsequent financial year will be backdated to no earlier than the start of that year.

Information about the circumstances, in which a change in rateable value may be proposed and how such a proposal may be made, is available from the Valuation Office shown above. Further information about the new appeals arrangements may be obtained from Braintree District Council, or on the web at www.voa.gov.uk/

National Non-Domestic Rating Multiplier
The national non-domestic rating multiplier is the rate in the pound by which, outside the City of London where special arrangements apply, the rateable value is multiplied to produce the annual rate bill for a property. It is set annually by the Government and except in a revaluation year, cannot, by law, rise by more than the amount of the increase in the retail prices index. The national rate multipliers are set out below:

1993/94 - 41.6p
1994/95 - 42.3p
1995/96 - 43.2p
1996/97 - 44.9p
1997/98 - 45.8p
1998/99 - 47.4p
1999/2000 - 48.9p
2000/2001 - 41.6p
2001/2002 - 43.0p
2002/2003 - 43.7p
2003/2004 - 44.4p
2004/2005 - 45.6p
2005/2006 - 42.2p (41.5p Small Business multiplier)
2006/2007 - 43.3p (42.6p Small Business Multiplier)

2007/2008 - 44.4p (44.1p Small Business Multiplier)

2008/2009 - 46.2p (45.8p Small Business Multiplier)

Transitional Arrangements
Transitional arrangements will phase in the effect of significant changes in liability, which arise from the 5 yearly revaluation of non-domestic property. Where appropriate, these arrangements will operate until March 2005 (when all non-domestic property will be revalued again). There are limits on the percentage by which bills may increase or decrease each year. Special rules deal with changes in rateable values and the merger or splitting of existing properties.

Further information about transitional arrangements may be obtained from Braintree District Council, or on the web at www.voa.gov.uk/

Small Business Rate Relief

This is a relief which was introduced by Government with effect from 1st April 2005.

Eligible businesses with a rateable value (RV) up to £4,999 will get 50% rate relief on their liability. This relief will decrease on a sliding scale by approximately 1% for every £100 of rateable value £5,000, up to £9,999.

For rateable values £10,000 up to £14,999, no relief is allowed but the bill is calculated using the small business multiplier.

To calculate the percentage relief for a property with a Rateable Value £5,000 to £9,999, take 10,000 and divide it by your property's RV. Then multiply your property RV by the lower multiplier, then divide by the % amount.

Example

RV of your property is £6,100. 10,000 divided by £6,100 = 1.639%. Multiply your property RV £6,100 by the lower multiplier 42.6p (2006/7), then divide by 1.639%. The amount of relief awarded is £1,013.12 leaving you a balance to pay of £1585.48.

Relief is available to ratepayers who occupy one property within England or one main property and other additional properties, providing the additional properties do not have rateable values of more than £2,200, and the combined rateable values of all the properties in under £15,000 (£21,000 in London).

The threshold for the combined rateable value is dependent on the location of the main property. The main property is the only one that will have relief applied to it. The additional properties will have their charges calculated using the standard multiplier.

The Small Business Rate Relief scheme is funded by a supplement on the rate bill of those businesses not eligible for the relief. This supplement is built in to the standard multiplier.

Eligible ratepayers can apply for the relief , including those with rateable values between £10,000 and £14,999. If your business ceases to be eligible during the financial year, relief will cease on that day. You must submit your application for relief to the Council within six months of the end of the financial year to which it relates - i.e. for the 2006/2007 year, the last date for applications would be 30th September 2007.

For an application form, please telephone the Revenues team on 01376 557755. Alternatively you can click on http://www.sbrr.co.uk/. Please note this is not a Council web page and the Council takes no responsibility for its content.

Rating of Unoccupied Non-Domestic Properties

The owner of a non-domestic property becomes liable to unoccupied rates when the whole hereditament has been unoccupied for a continuous period of 3 months, or in the case of industrial property, 6 months.

The unoccupied charge is currently 50% of the occupied charge but from 1st April 2008 100% charge will apply.

There are exemptions from the unoccupied rate, including:-

1. its owner is prohibited by law from occupying it or allowing it to be occupied;

2. it is kept vacant by reason of action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting the occupation of the hereditament or to acquiring it;

3. it is the subject of a building preservation notice as defined by section 58 of the Town and Country Planning Act 1971 or is included in a list compiled under section 54 of that Act;

4. it is included in the Schedule of monuments compiled under section 1 of the Ancient Monuments and Archaeological Areas Act 1979;

5. its rateable value is less than £1,000 in the 1990 rating list, or less than £1,500 in the 1995 rating list, or less than £1,900 in the 2000 rating list;

6. the owner is entitled to possession only in his capacity as the personal representative of a deceased person;

7. there subsists in respect of the owner’s estate a bankruptcy order within the meaning of parts 8 to 11 of the Insolvency Act 1986;

8. the owner is entitled to possession of the hereditament in his capacity as trustee under a deed or arrangement to which the Deeds of Arrangement Act 1914 applies;

9. the owner is a company which is subject to a winding-up order made under the Insolvency Act 1986 or which is wound up voluntarily under that Act;

10. the owner is entitled to possession of the hereditament in his capacity as liquidator by virtue of an order made under section 112 or section 145 of the Insolvency Act 1986.

Definitions

In ascertaining whether an hereditament has been continuously unoccupied for a period of 3 months, or in the case of industrial properties, 6 months, periods of occupation of less than 6 weeks will not be taken into account (although any occupied periods will be charged for)

‘Qualifying industrial hereditament’ means any hereditament other than a retail hereditament in relation to which all buildings comprised in the hereditament are-

1. constructed or adapted for use in the course of a trade or business; and

2. constructed or adapted for use for one or more of the following purposes, or one or more such purposes and one or more purposes ancillary thereto;

(a) the manufacture, repair or adaptation of goods or materials, or the subjection of goods or materials to any process;

(b) storage (including the storage or handling of goods in the course of their distribution);

(d) the generation of electricity; and “retail hereditament” means any hereditament where any building or part of a building comprised in the hereditament is constructed or adapted for the purpose of the retail provision of-

1. goods, or services, other than storage for distribution services, on or from the hereditament.

Important Information for Owners / Leaseholders Concerning the Rating of Empty Non-Domestic Property – The Rating (Empty Property) Act 2007

With effect from 1 April 2008 the Government is changing entitlement to relief from rates for empty non-domestic property.

If you are responsible for rates in respect of an empty non-domestic property it is likely you will be affected by the changes. The following questions and answers are intended to explain how and allow you to plan accordingly.

What changes are being made?

The principle changes are as follows:

empty property rate relief will be reduced from 50% to 0% exemption from rates for empty industrial property will no longer be open ended but limited to 6 months. Why are the changes being made?

The changes are being made to provide a strong incentive to bring empty property back into use and in particular are intended to:

help increase the supply of premises to let reduce business rents and improve competitiveness encourage re-development of brownfield sites so reducing the need for development on greenfield land. What will it mean for my rate liability?

Currently, most empty property is liable to rates at 50% of the full occupied rate after an initial exemption period of 3 months, while empty industrial property is exempt altogether.

The changes will mean that, as of 1 April 2008, most property that has been empty for more than 3 months - or, in the case of industrial property, for more than 6 months - will no longer receive any relief from rates and the full amount will become payable.

Are all empty properties affected?

Some non-domestic properties will still be exempt from rates after 1st April 2008 including:

any small property with a rateable value below £2200 where liability falls on a charity or community amateur sports club listed buildings and properties subject to insolvency / administration. Can I appeal against the change in my rates liability?

The changes in rates 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 for your property, under existing arrangements you may challenge it by making a `proposal’ against it to your local Valuation Office. Your rights of appeal are not affected by the reforms to empty property relief and you can contact the local Valuation Office for further information about making proposals.

Can I get my property taken out of rating?

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 may judge it should be taken out of rating altogether. However, if a property is damaged for the purposes of avoiding rates, under new anti-avoidance legislation introduced by the Government the Valuation Office will be required to disregard the change in the property’s state when assessing its rateable value.

Where can I find out the rateable value of a property?

The quickest and easiest way to find the rateable value of any non-domestic property in England is through the website of the Valuation Office Agency,www.voa.gov.uk

Where can I get further information on these changes or anything else to do with non-domestic rates?

More information about non-domestic rates can be found on the following websites -

- http://www.voa.gov.uk/
- http://www.mybusinessrates.gov.uk/
- http://www.communities.gov.uk/

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 per cent of the full rate bill or of the transitional bill where the transitional arrangements apply. Billing authorities have
discretion to remit all or part of the remaining 20 per cent of a charity'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.

Please contact the Revenues Section for further details and an application form.

Rural rate relief
The occupier of a general store or post office in a settlement appearing in a billing authority's rural settlement list is entitled to rate relief, if it is the only such store or post office in that settlement and its rateable value is £6,000 or less.

Occupiers of the sole public house and/or garage with rateable values of £9,000 or less appearing in a billing authority's rural settlement list could be entitled to rate relief. Relief is given at 50% of the full charge, or of the transitional bill. Billing authorities have discretion to remit all or part of the remaining 50%.

Authorities also have discretion to remit part or all of the rate bill on other properties in a qualifying settlement of 3,000 people or fewer, if the rateable value is £12,000 or less and the authority is satisfied that the property is used for a purpose 'which benefits the local community.' Rate relief for new, non-agricultural business on previously agricultural land or buildings.

Rate relief is available for businesses with rateable values of up to £6000, where the business is set up on previously agricultural land or buildings. Subject to certain conditions, the business will get a 50% reduction in the rate bill for up to five years. Local councils have discretion to give further relief on the remaining bill on such property.

Please contact the Revenues Section for further details and an application form.

What to do, if you think your rateable value is too high. If you think that your rateable value is too high, you may wish to make an appeal to have it reduced, or if the reason that you think that it is too high is due to having had a 'material decrease' you may wish to propose a change. Alternatively, you may wish to contact a rating advisor. Members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues, Rating and Valuation (IRRV) are regulated by rules of professional conduct designed to protect the public from misconduct. If you have access to the Internet, see http://www.rics.org.uk/ or http://www.irrv.org.uk/.

Making Payments
Many people would like an easier way to pay their Council Tax or Business Rate bill. As these bills are payable monthly, but we do not issue reminders each month, many people face recovery action when they have forgotten to send their cheque each month or can't get into the Council offices. The easiest way to avoid these problems is to use DIRECT DEBIT.

If you do not already pay by direct debit and wish to take up this option, please complete and return an instruction to the Revenues Section.

If you already pay by Direct Debit, you do not have to complete a new instruction. Your Direct Debit will carry over to the new year, or new property, if you move.

DIRECT DEBIT is safe and convenient and you are covered by the Direct Debit Guarantee. This guarantee is offered by all banks and building societies that take part in the Direct Debit Scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society.

As part of the guarantee, if the amounts to be paid or the payment dates change, Braintree Council will notify you 10 days in advance of your account being debited or as otherwise agreed.

If an error is made by Braintree Council or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

You can cancel a Direct Debit at any time by contacting your bank or building society. Please also inform Braintree Council Revenues Section.

PLEASE REMEMBER
If you do not make payments by the due dates, the Council will issue a reminder notice. The maximum number of reminders you may receive is 2; the minimum is 1, in any financial year. You will not receive a reminder every month. So, if any of your payments are irregular after receiving a reminder, the next notification that you will receive will be a pre-summons notice.

Further information about how to pay your bill is
printed on the reverse of your bill, or, you can contact the Revenues section of Braintree District Council.

You can now make payments via the internet using E-Payments.