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NON-DOMESTIC RATES |
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Non-Domestic rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property
contribute 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 authorities 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 authority and other local authorities in your area.
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RATEABLE VALUE |
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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 Inland Revenue. It draws up and maintains a full list of all rateable values,which are available on their website at www.voa.gov.uk. The rateable value of a non domestic property 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 1st April 2005, this date was set as 1st April 2003. The valuation officer may alter the value if the circumstances of the property have changed. The rate payer (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 about making appeals, can be found on the VOA website or from your local valuation office. Successful appeals against values shown in the rating list that came into force on 1st April 2005 will normally be backdated to that date, although there are exceptions to this. Further information about these arrangements may be found at the VOA website.
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NATIONAL NON-DOMESTIC RATING MULTIPLIER |
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The local authority works out the Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier. From 1st April 2005 there are two multipliers; the standard non-domestic rating multiplier and the small business rating multiplier. The former is higher to pay for small business rate relief. The Government sets the multipliers for each financial year for the whole of England. The Government normally changes both multipliers every year in line with inflation. By law, the multipliers cannot go up by more than the rate of inflation apart from some minor adjustments to counteract losses from appeals and, in relation to the standard multiplier, to pay for small business rate relief. In the year of a revaluation 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 multipliers are shown on the front of this bill.
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TRANSITIONAL ARRANGEMENTS |
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Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the
effects of these changes by limiting increases in bills. To help pay for the limits on increases in bills, 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 1st April 2005,
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 St Albans District Council or from the website at www.mybusinessrates.gov.uk
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UNOCCUPIED PROPERTY RATING
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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 at the standard occupied rate 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 empty rate. Full details on exemptions can be obtained from the local authority. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of this bill.
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CHARITABLE RELIEF, RELIEF FOR REGISTERED COMMUNITY AMATEUR SPORTS CLUBS (CASCS) AND DISCRETIONARY RELIEF
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Charities are entitled to relief from
rates on any non-domestic property that is wholly or mainly used for charitable purposes. Registered CASC’s are also entitled to relief from rates on any non-domestic property that is wholly or mainly used for the purposes of that club, or that club and other such registered clubs. In both cases, 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. Full details can be obtained from the local authority.
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RATING ADVISERS
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Rate payers 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, rate payers 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.
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SMALL BUSINESS RATE RELIEF
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This is available at 50% for ratepayers occupying single properties with a rateable value up to £5,000, with relief declining in percentage terms on a sliding scale until it is 0% at £10,000. The relief is only available to ratepayers with either (a) one property, or (b) one main property and other additional properties providing those additional properties have rateable values less than £2,200. The rateable value of the property mentioned in (a), or the aggregate rateable value of all properties mentioned in (b), must be under £15,000 outside London or £21,000 within London.
The scheme is funded through a supplement on the rate bills of those businesses not eligible for relief. The supplement is built into the standard
non-domestic rating multiplier. However ratepayers of eligible business properties with ratable values between £10,000 and £15,000 (£21,000 within
London) do not have to contribute towards the relief and will have their bills calculated using the lower small business non-domestic rating multiplier.
Ratepayers must apply for the relief each year and must be eligible on the 1st April of each year. If a ratepayer ceases to be eligible on a day during the
year in question, the relief will cease on that day. An application for relief must be submitted in writing to the local authority within 6 months of the end of
the financial year to which it relates. Full details on how to apply for the relief are available from the local authority.
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ENQUIRIES |
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For further enquiries, please contact the Business Rates
department via businessrates@stalbans.gov.uk.
or use our online
business rates enquiry form.
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