Reductions and
relief
There are a number of different
business rate reductions available in Newham.
Revaluation 2010
and transitional arrangements
All rateable values are reassessed every five years
at a general revaluation. The current rating list is based on the
2010 revaluation. Five-yearly revaluations make sure each ratepayer
pays their fair contribution and no more, by ensuring that the
share of the national rates bill paid by any one ratepayer reflects
changes over time in the value of their property relative to
others. Revaluation does not raise extra money for
Government.
For those ratepayers who would otherwise have seen significant
increases in their rates liability, the Government has put in place
a £2 billion transitional relief scheme to limit and phase in
changes in rate bills as a result of the 2010 revaluation. To help
pay for the limits on increases in bills, there were also 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 appropriate 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 1st
April 2010, transitional arrangements will not normally apply to
the part of a bill that relates to any increase in rateable value
due to those changes. Changes to your bill as a result of other
reasons (such as because of changes to the amount of small business
rate relief) are not covered by the transitional
arrangements.
The transitional arrangements are applied automatically and are
shown on the front of your bill. More information on revaluation
2010 can be found at
www.voa.gov.uk.
Rateable
Value
Apart from properties that are exempt from Business Rates, each
non-domestic property has a rateable value which is set by the
valuation officers of the Valuation Office Agency (VOA), an agency
of Her Majesty's Revenue and Customs. They draw up and maintain a
full list of all rateable values, available on their website at
www.voa.gov.uk. The rateable
value of your property is shown on the front of this bill. This
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 2010, this date was set as 1 April
2008.
The valuation officer may alter the value if circumstances change.
The ratepayer (and certain others who have an interest in the
property) can appeal against the value shown in the list if they
believe it is wrong. Further information about the grounds on which
appeals may be made and the process for doing so can be found on
the VOA website or from the local valuation office detailed
below:
Valuation Office Agency
Chase House
305 Chase Road
Southgate
London
N14 6LZ
Tel: 03000 501501
National
Non-Domestic Rating Multiplier
The local authority works out the business rates bill by
multiplying the rateable value of the property by the appropriate
multiplier. There are two multipliers; the standard non-domestic
rating multiplier and the small business non-domestic rating
multiplier. The former is higher to pay for small business rate
relief. Except in the City of London where special arrangements
apply, the Government sets the multipliers for each financial year
for the whole of England according to formulae set by legislation.
Between revaluations the multipliers change each year in line with
inflation and to take account of the cost of small business rate
relief. In the year of revaluation the multipliers are rebased to
account for overall changes to total rateable value and to ensure
that the revaluation does not raise extra money for Government. The
current multipliers are shown on the front of your bill.
Unoccupied property
rating
Business rates will not be payable in the first
three months that a property is empty. This is extended to six
months in the case of certain industrial properties. After this
period rates are payable in full unless the unoccupied property
rate has been reduced by the Government by order. In most cases the
unoccupied property rate is zero for properties owned by charities
and community amateur sports clubs. In addition, there are a number
of exemptions from the unoccupied property rate. Full details on
exemptions can be obtained from Newham council business rate
section on
020 8430 3250. If the unoccupied
property rate for the financial year has been reduced by order, it
will be shown on the front of the bill.
Partly
occupied property relief
A ratepayer is liable for the full non-domestic rate
whether a property is wholly occupied or only partly occupied.
Where a property is partly occupied for a short time, the local
authority has discretion in certain cases to award relief in
respect of the unoccupied part. Full details can be obtained from
the business rate section on
020 8430 3250.
Small
business rate relief
This relief is only available to ratepayers who apply to their
local authority and who occupy either:
(a) one property, or
(b) one main property and other additional properties providing
those additional properties each have a rateable value of less than
£2,599.
The rateable value of the property mentioned in (a), or the
aggregate rateable value of all the properties mentioned in (b),
must not exceed £17,999 outside London or £25,499 in London on each
day for which relief is being sought. If the rateable value, or
aggregate rateable value, increases above those levels, relief will
cease from the day of the increase.
Ratepayers who satisfy these conditions will have the bill for
their sole or main property calculated using the lower small
business non-domestic rating multiplier rather than the national
non-domestic rating multiplier that is used to calculate the
liability of other businesses. In addition, if the sole or main
property is shown on the rating list with a rateable value which
does not exceed £12,000, the ratepayer will receive a percentage
reduction in their rates bill for this property of up to a maximum
of 50% for a property with a rateable value of not more than
£6,000.
If an application for relief is granted, provided the ratepayer
continues to satisfy the conditions for relief which apply at the
relevant time as regards the property and the ratepayer, they will
not need to re-apply for relief in each new valuation period.
Certain changes in circumstances will need to be notified to the
local authority by the ratepayer (other changes will be picked up
by the local authority). The changes which must be notified
are:
(a) the ratepayer taking up occupation of a property they did not
occupy at the time of making their application for relief,
and
(b) an increase in the rateable value of a property occupied by the
ratepayer in an area other than the area of the local authority
which granted the relief.
Notification of these changes must be given to the local authority
within 4 weeks of the day after the day on which the change
happened. If this happens, there will be no interruption to the
ratepayer's entitlement to the relief. A notification that the
ratepayer has taken up occupation of an additional property must be
by way of a fresh application for relief; notice of an increase in
rateable value must be given in writing.
Full details on the eligibility criteria and on how to apply for
this relief are available from Newham Council business rate team on
020 8430 3250 or you can
apply online.
Charity and
registered community amateur sports club
relief
Charities and registered CASCs are entitled to 80% relief where the
property is occupied by the charity or the CASC, and is wholly or
mainly used for the charitable purposes of the charity (or of that
and other charities), or for the purposes of the CASC (or of that
and other CASCs).
The local authority has discretion to give further relief on the
remaining bill. Full details can be obtained by contacting the
business rate office on 0208 430 3250 or download
details.
Non-profit
making organisation relief
The local authority has discretion to give relief to Non-Profit
Making Organisations. Full details can be obtained from Newham
Council Business Rate team on 020 8430 3250.
Hardship
relief
The local authority has discretion to give relief in special
circumstances. Full details can be obtained from Newham Council
Business Rate team on 020 8430 3250.
Rating
advisers
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 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.