Business rates - General Information

Business Rates [NNDR]

Non-Domestic Rates

The non-domestic rates, or business rates, collected by local councils are the means by which businesses and others who occupy non-domestic property make a contribution towards the cost of local services.  Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local councils according to the number of people living in the area.  This money, together with revenue from council taxpayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local council and other local authorities in your area.

Rateable Value

Apart from properties that are exempt from Business Rates, each non-domestic property has a rateable value which is normally set by the valuation officers of the Valuation Office Agency (VOA), an Agency of the Insland Revenue.  It draws up and maintains a full list of all rateable values, which are available on their website at www.voa.gov.uk or on telephone number 0845 602 1507. The rateable value of your property will be shown on the front of your bill. The rateable value broadly represents the yearly rent the property could have been let for on the open market on a particular date.  For the revaluation that came into effect on 1 April 2005, this date was set as 1 April 2003.

The valuation officer has to maintain the list and may alter the value if he or she believes that the circumstances of the property have changed.  The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they believe it is wrong.  Further information on the grounds for making an appeal, and on how to make one, can be found on the VAO website at www.voa.gov.uk or from your local valuation office.

The effect of successful appeals against values shown in the rating list that came into force on 1st April 2005 will normally be backdated to the beginning of the financial year in which they are made, although there are exceptions to this.

National Non-Domestic Rating Multiplier

The local council works out the Business Rates bill by multiplying the rateable value of the property by the multiplier or 'poundage' which the Government sets from 1st April each year for the whole of England. The Government normally changes the multiplier every year to move in line with inflation.  By law, the multiplier cannot go up by more than the rate of inflation, except in the year of a revaluation when it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. The current multiplier will be shown on the front of your bill.

Transitional Arrangements

Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reductions in bills. Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier).

The scheme applies only to the bill based on a property at the time of the 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 those changes. Further information about transitional arrangements may be obtained from North Shropshire District Council or on the ODPM website at www.mybusinessrates.gov.uk

Any transitional adjustments will be shown on the front of your bill.

Unoccupied Property Rating

With effect from the 1st April 2008, the legislation concerning empty property rates has changed.  In general, there will be no Business Rates payable for the first three months that a property is empty, or six months in the case of an industrial property.  After that, an empty property rate of 100% of the bill that would have been due if occupied will be payable.  Listed buildings and small properties with rateable values less than £2,200 will continue to be exempt from empty property rates even after the first three months have expired.

Charitable and Discretionary Relief

Charities are entitled to relief from rates on my non-domestic property that is wholly or mainly used for charitable purposes. Relief is given at 80 per cent of the bill. Local councils have discretion to give further relief on the remaining bill.

Authorities also have discretion to give relief on all or part of any rate bill for property occupied by certain non-profit making bodies. They can also consider giving rate relief in cases of hardship or where part of a property is beyond use for a certain period.

Community Amateur Sports Clubs (CASCs)

A new fetaure of the regulations is the provision for rate relief for clubs registered as community amateur sports clubs (CASCs). From 1st April 2004, under Section 64 of the Local Government Act 2003, CASCs will automatically get 80% mandatory rate relief. It is not currently the policy of this Council to award the 20% discretionary 'top-up' relief to those who are entitled to this new mandatory relief.

Rating Advisors

Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website www.rics.org.uk) and the Institute of Revenues Rating and Valuation (IRRV - website www.irrv.org.uk) 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.

Rate Relief for business in rural areas

Certain types of business in rural villages, with a population below 3000 may qualify for rate relief of 50%. Businesses that qualify for this relief are the sole general store and the sole post office in the village, provided it has a rateable value of up to £7000; any food shop with a rateable value of up to £7000; and the sole pub and the sole petrol station in the village provided it has a rateable value of up to £10,500. Local councils have discretion to give further relief on the remaining bill on such property.

The local council may decide to give up to 100% relief to any other business in such a rural village, with a rateable value of up to £14,000, if it is satisfied that the business is of benefit to the community and having regard to the interests of its council tax payers.

Small Business Rate Relief

With effct from 1 April 2005 the Government have introduced a new rate relief scheme, aimed mainly at small businesses that occupy one rating assessment, that has a Rateable Value of less than £15,000.  Further information and an application form may be obtained from the Revenues Section using the contact details below.

Related Links

Check your Business Rates Account Online

Register to receive your Council Tax Bill electronically