1. Introduction
- 1.1 The guidance in this Policy relates to businesses liable for business rates in 2021/22. It is intended for businesses applying to Braintree District Council (the Council) for a discount from their liability in accordance with the government’s COVID-19 Additional Relief Fund (CARF), announced on 25 March 2021.
- 1.2 Only businesses occupying a property shown in the rating list and liable for business rates in 2021/22 are eligible to apply for the discount. It will be applied only to any liability for 2021/22 and any determination by the Council must be made by 30th September 2022.
2. Scope of Policy
- 2.1 Section 47 of the Local Government Finance Act 1988 (as amended by the Localism Act 2011) gives discretionary powers to Local Authorities to grant relief to reduce business rates bills.
3. General Information
- 3.1 This policy has been agreed to ensure that there is a framework in place under which ratepayers applying for relief are treated in a fair, consistent, and equal manner; and the taxpayer’s interest is safeguarded.
- 3.2 Central Government has provided the authority with funding to assist those ratepayers who businesses have been affected by the Covid-19 pandemic but that are ineligible for existing support linked to business rates.
- 3.3 The Council’s ability to grant CARF is limited to other factors, such as, the subsidy rules under the UK-EU Trade and Cooperation Agreement (TCA).
- 3.4 Applicants will be notified by way of a revised bill notice once a decision has been made.
- 3.5 Recipients of relief are required to notify the Council immediately of any changes of circumstances which may have an impact upon the award granted.
- 3.6 Rateable properties which have become closed temporarily due to the government’s advice on COVID-19, will be treated as occupied for the purposes of this relief.
4. Funding arrangements
4.1 The cost of CARF to the Council can be recovered from the Government by way of a grant under section 31 of the Local Government Act 2003. Once the Council’s full allocation has been awarded the relief fund will close.
5. Applying for assistance
- 5.1 As a pre-requisite to applying for relief, every applicant must complete an application form that is available by contacting the Business Rate team on 01376 557788.
- 5.2 Businesses that apply for relief must confirm that they have been adversely affected by the pandemic and have been unable to adequately adapt to that impact, providing relevant details with the application. The Council reserves to the right to request additional information in addition to that submitted if it considers this necessary to assess an application.
- 5.3 Applicants will need to provide confirmation:
- that the business has not received certain reliefs as stated within the government issued COVID-19 Additional Relief Fund Guidance;
- that they meet the eligibility criteria;
- that the business is not subject to Subsidy Control as set out in this Policy; and
- will provide evidence to support the above if requested to do so.
- 5.4 Relief will be removed if there is a subsequent failure to provide additional evidence requested by the Council.
- 5.5 Applications will be accepted from ratepayers only. The Council will provide this relief and provide guidance free of charge.
6. Excluded Businesses and Hereditaments
- 6.1 Not all ratepayers will qualify for this relief. Ratepayers meeting the circumstances outlined below will not be considered for relief:
- Ratepayers occupying hereditaments registered as empty for the qualifying period (other than premises which have become closed temporarily due to the government’s advice on COVID-19).
- Ratepayers who for the 2021/22 year were either in receipt of or, would have been eligible for:
- Extended Retail Discount (covering retail, hospitality, and leisure)
- Nursery Discount
- Airport, Ground Operations Support Scheme (AGOSS),
- Small Business Rate Relief or Rural Rate Relief granted at 100%
- Mandatory Rate Relief (80%) and discretionary top-up of 20%
- Any other discretionary relief (100%)
- Ratepayers subject to any personal or corporate insolvency procedures – including but not limited to:
- Individual Voluntary Arrangement (IVA)
- Company Voluntary Arrangement (CVA)
- Debt Relief Orders
- Breathing Space Respite
- Bankruptcy proceedings
- In receipt of a striking off notice
- In administration
- Any hereditament classed as:
- Vets and Animal Care
- Auxiliary Defence Buildings
- Banks
- Building Societies
- Clubs and associations (primarily storage)
- Communication Stations
- Education (incl. Public and Private Schools)
- Electricity Buildings
- Energy including renewables, photovoltaic
- Health Centres
- Nationwide Retailers and Distributors (national & multi-national retailers & distributors)
- Petrol Stations
- Post Office
- Postal, Courier and Home Delivery
- Professional Services (Accountants, Solicitors, and Independent Financial Advisors)
- Public Conveniences
- Public Bodies/ Public Funded
- Self-Storage and Non-Public Car Parks (i.e. containers, car parks attached to businesses)
- Sewage Treatment Works
- Site of ATM's
- Surgeries
- Telecoms and Utilities
- 6.2 In line with the legal restrictions in section 47(8A) of the Local Government Finance Act 1988, billing authorities may not grant the discount to themselves, or to the major precepting bodies.
- 6.3 In certain cases, the order in which relief is granted is specified. Mandatory relief shall be granted in all cases where the relevant criteria are met irrespective of whether discretionary relief can be granted or not.
7. Award
- 7.1 Eligible businesses will receive relief at 25% off their business rates bills (calculated after any other reliefs and reductions have been applied) for the 2021 to 2022 tax year (1 April 2021 to 31 March 2022). Relief will be awarded on a pro rata basis in line with the period of occupation.
- 7.2 Subject to the balance of funds left in the Council’s CARF allocation in July 2022, a further top-up award of relief may be made to those businesses that have received an initial award. There is no guarantee that a top-up award will be paid, and the amount of this top-up award will not be confirmed or potentially awarded until at least August 2022.
8. Subsidy Control
- 8.1 The CARF scheme is subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). However, for CARF there is an exemption for subsidies under the value of approximately £2,243,000 per economic actor (broadly speaking, for example, a holding company and its subsidiaries). This allowance comprises 325,000 Special Drawing Rights (at current exchange rates about £343,000) for Small Amounts of Financial Assistance and a further £1,900,000 for COVID-19 related subsidy
- 8.2 Therefore, to be awarded CARF you must not have claimed over the period 2019/20 to 2021/22 more than £2,243,000 from schemes which fell within the Small Amounts of Financial Assistance or COVID-19 related allowances. COVID-19 business grants you have received from local government and the 2019/20 Retail Relief should count towards this limit, but you should not count any Extended Retail Discount you have received since 1 April 2020. Click here to read further details of subsidy control.
9. Changes in circumstances
- 9.1 Variations in any decision will be notified to ratepayers as soon as practicable and will take effect as follows:
- Where the amount of relief is increased due to a change in rate charge (excluding rateable value increases where no increase in relief will be granted), or a change in the Council’s decision which increases the award – this will apply from a date determined by the Council as appropriate;
- Where the amount is to be reduced due to a reduction in the rate charge of liability including any reduction in rateable value, awarding of another relief or exemption this will apply from the date of the decrease in rate charge; and
- Where the amount is to be reduced for any other reason, it will take effect from a date determined by Council as appropriate.
- 9.2 Where a change of circumstances is reported which would cease or revise eligibility, the relief will, if appropriate, be revised or cancelled as appropriate. Where any award is to be reduced, the Council will look to recover the amount from the date the change of circumstances occurred.
10. Administration of the Scheme
10.1 Granting, varying, reviewing and revocation of relief
- 10.1.1 The Council’s Revenues Manager will award, revise or revoke any discretionary relief applications. However, any application which is considered to be of a significant nature, will be subject to consultation with the Council’s Section 151 Officer, prior to final determination.
- 10.1.2 Applicants that are refused will, on request, be reconsidered if additional supporting information is provided or the refusal is subsequently considered to be based on misinterpretation of the application.
10.2 Appeals
- 10.2.1 If a ratepayer wishes to appeal against a decision on the granting, non-granting or the amount of any discretionary relief, this should be made in writing to the Revenues and Benefits Manager and must be received by the Council within 4 weeks of the date a decision letter is sent. Late appeals will not be considered. The case will be reviewed by the Revenues and Benefits Manager and where a decision is revised then the ratepayer shall be informed, likewise if the original decision is upheld.
- 10.2.2 Where the ratepayer wishes to appeal the decision of the Revenues and Benefits Manager, the case will considered by the Council’s Section 151 Officer whose decision on behalf of the Council will be final.
11. Fraud
- 11.1 All information is subject to a series of internal and external checks including government departments to ensure compliance and awards are made accurately. The Council will not accept deliberate manipulation and fraud. Any business identified falsifying their records or making inaccurate statements to gain relief will face prosecution and any relief awarded will have to be repaid as will any relief claimed or awarded in error.