Business rates - exemptions and reliefs
Business rates relief for affected businesses
Business Rates Inspectors have started visiting those businesses affected by the recent troubles. The Council anticipates a very small number of properties will be identified as being uninhabitable - these will be referred to the Valuation Office by the Council for their rating to be amended or removed. For those properties where the damage is not as extensive the Council will be awarding hardship rate relief. Business Owners will not have to complete forms to apply for this assistance it will automatically be applied to their Business Rates Account. The Council will issue notifications to reflect the changes as quickly as possible.
Unoccupied property
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 property is exempt from unoccupied property rates
Exemptions include small properties with rateable values below a certain threshold.
These thresholds are:
|
Year |
Rateable Value Threshold |
|
2008/09 |
£2,200 |
|
2009/10 |
£15,000 |
|
2010/11 |
£18,000 |
| 2011/12 (to 2015) | £2,600 |
The threshold has reduced considerably between 2010/11 and 2011/12, meaning that a large number of ratepayers will receive full rates bills for the new financial year. To ensure that the ratepayers have notice of the change the Business Rates Team has sent a letter to all of the ratepayers involved, explaining that the bill they will be receiving for 2011/2012 will show a charge, unlike the bill they received for this year.
In most cases, the unoccupied rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the empty property rate.
Full details on exemptions can be obtained from the Business Rates section. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of your bill.
Small business relief
If the rateable value of your business property is below £12,000 you may be eligible for small business relief. If the value is between £12,000 and £25,499 you could be eligible for a lower bill because of a discount called the small business relief reduced multiplier. The rateable value is shown next to the property address on your Business Rates bill. If you occupy more than one property you may not be eligible for relief.
Small Business Relief is not awarded for empty properties, or for properties where mandatory Charity Relief has already been granted.
The table below shows how much you could save:
| Rateable Value of your property | Small Business Relief |
| £6,000 | 50% off your bill |
| £7,000 | 41.67% |
| £8,000 | 33.33% |
| £9,000 | 25% |
| £10,000 | 16.67% |
| £11,000 | 8.33% |
If you would like to apply for Small Business Relief please download, complete and return the form below:
Small Business Rates Relief Application Form (Word, 48 KB)
If you have previously applied for small business relief you do not need to re-apply.
Budget announcement: Important news that could benefit your business
The Government introduced a temporary increase in the level of Small Business Rate Relief (SBRR) available to eligible businesses. The increase in relief came into effect on 1 October 2010 and was due to end on 30 September 2011. However it was announced in the budget on 23 March 2011 that the increase in relief is to be extended for a further year to the 30 September 2012.
Once the legislation is in place confirming the extension of the period for the increase in relief an amended bill will be issued to you for 2011/12. Meanwhile, you should ensure that you continue to pay your existing business rates bill. More information is available in the Communities & Local Government leaflet below:
Small Business Rate Relief - Budget Changes 2011 (Word, 116KB)
Exempt property
Council Tax properties that are exempt still appear in the Valuation List with the Valuation Band for that property. However, properties that are exempt from non domestic rates do not appear in the local Rating List of the Council. The types of property that are exempt from rating are:-
- Agricultural Land and Buildings
- Drainage authority property
- Fish farms
- Property used for the disabled
- Public parks
If you believe that your property should be exempt from non domestic rates, you will need to contact the Valuation Office Agency at
London City Group Valuation Office
Cityside
40 Adler Street
London
E1 1EE
Tel: 03000 504 650
Fax: 03000 504 729
Email: londoncitygroup.vo@voa.gsi.gov.uk
Charity relief
This relief can be granted to registered charities (or charities exempt from registration) who occupy property which is used for wholly or mainly charitable purposes.
The relief is mandatory (must be granted) if the criteria are met and reduces the non domestic rate bill by 80% of the net amount payable. We have discretion, in certain circumstances, to further reduce the bill by 20% thereby giving a full 100% reduction in the rates bill.
If you think you may qualify for this relief and would like to apply please contact us at business.rates@hackney.gov.uk.
Discretionary relief
We have a discretionary power to grant relief of up to 100% of the net amount payable if your organisation is associated with any one of the following:-
- Fine arts
- Literature
- Social welfare
- Religion
- Charity
- Science
- Education
- Philanthropy
Or if your organisation is a club or society. As this relief can be granted at our discretion, we are not duty bound to grant the relief but will consider each case on its merits.
If you think you may qualify for this relief and would like to apply please contact us at business.rates@hackney.gov.uk.
Hardship relief
If you are experiencing problems paying your non domestic rates, we have the discretion to consider reducing your rates bill on the grounds of hardship.
When reaching our decision, we must not only take account of any financial hardship you may be experiencing, but also that to grant any relief would be in the interests of the taxpayers of the Borough.
If you think you may qualify for this relief and would like to apply please contact us at business.rates@hackney.gov.uk.
Page updated: 12 Oct 2011
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