Changes to Non-Domestic Rates
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The Chancellor’s Budget 8th March 2017
In the March 2017 Budget, the Chancellor announced further support for businesses facing significant increases in bills from the English business rates system. This includes:
- Support for small businesses losing Small Business Rate Relief to limit increases in their bills to the greater of £600 each year.
- Support providing English local authorities with funding to support £300 million of discretionary relief, to allow them to provide support to individual hardship cases in their local area.
- The government will also introduce a £1,000 business rate discount for public houses with a rateable value of up to £100,000, subject to state aid limits for businesses with multiple properties, for one year from 1 April 2017.
Please be aware that we are still awaiting further details/instructions from Central Government on the administration of these schemes, and therefore any changes are not yet reflected in the business rate demands for 2017/2018, dated 10th March 2017.
Please therefore make payments in accordance with the 2017/2018 demand. Anyone affected by the changes will be contacted and issued with adjusted demands as appropriate.
2017 Business Rate Revaluation
The current valuations used by local authorities to calculate business rate bills are based on the 2010 valuation. The next revaluation will take place on 1st April 2017, and is based on rental values at 1st April 2015.
Business rate bills sent out with effective dates from 1st April 2017 will use the new 2017 valuation information. You can get an estimate of your 2017-18 bill online at www.gov.uk/voa/revaluation
What you need to do
Your draft rateable value was published online on 30 September 2016. You will be able to review your draft valuation and let the Valuation Office Agency (VOA) know if any of the details are incorrect. Please note that you will not receive printed valuations.
Click: www.gov.uk/voa/revaluation to view your draft rateable value.
Check: the information to make sure all your property information held by the VOA is correct.
If you think the information held about your property is incorrect advise the VOA so that your records can be updated. This can be done at www.gov.uk/voa/revaluation.
Transitional Rate Relief and Adjustment
The government will introduce a five year transitional rate relief scheme to limit the impact to changes in rate liabilities as a result of the general revaluation in April 2017.
Transitional Relief is granted if the rateable value of your property changes significantly as a result of revaluation. This relief means that the business rates that you have to pay will increase gradually. If you get this relief, we automatically include this when we work out what business rates you should pay.
To help pay for the limits on increases in bills there are also limits on the reduction in bills known as transitional adjustment. These do not cover changes in rateable value due to changes to the property. For example, if an extension was built and the rateable value increased you would not be included in the transitional scheme.
Transitional Rate Relief Explanation can be assessed here.
Small Business Rate Relief Scheme
On 1st April 2017 the Small Business Rate Relief scheme will be changing as announced by the government in their budget on 16th March 2016.
Ratepayers of occupied properties with a rateable value of £12,000 or less will be entitled to relief under the scheme of 100%. Further to this, ratepayers of occupied properties with a rateable value of £12,000 to £15,000 will receive tapered relief of between 100% and 1%. The relief would be granted upon receipt of a valid application where all eligibility criteria is met.
The Non-Domestic Rate charge for ratepayers of occupied properties with a rateable value of £50,999 or less will automatically be calculated using the Small Business multiplier of £0.466.
Relief for Local Newspapers
On 1st April 2017 the government will introduce a £1,500 discount for office space occupied by local newspapers in England, up to a maximum of one discount per local newspaper title and per rated property, and up to state aid limits, for 2 years.
Empty Property Exemption
With effect from 1st April 2017 the threshold for an empty property to receive an indefinite empty property exemption whilst it remains unoccupied will increase from £2,599 to £2,899.
Page last updated: 19/06/2017