Overview of Business Rates
Business Rate Reliefs
Depending on individual circumstances, a ratepayer may be eligible for a rate relief. There are a range of available reliefs. Further details are provided below and at www.gov.uk/introduction-to-business-rates, or by contacting the Council.
Temporary Reliefs
Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available at www.gov.uk/apply-for-business-rate-relief.
Small Business Rates Relief
Ratepayers who occupy a property with a rateable value below £51,000 will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a sole or main property with a rateable value of not more than £12,000, the ratepayer will normally receive a 100% reduction in their rates bill.
Generally, this percentage reduction is only available to ratepayers who occupy either—
- one property, or
- one main property and other additional properties, providing those additional properties each have a rateable value of less than £2,900.
The aggregate rateable value of all the properties mentioned in (b), must be less than £20,000, 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. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a period of 12 months.
Where a ratepayer meets the eligibility criteria and has not received the relief they should contact the council. 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 automatically continue to receive relief in each new valuation period.
Certain changes in circumstances will need to be notified to the council by a ratepayer who is in receipt of relief. The changes which should be notified are—
- the property falling vacant,
- the ratepayer taking up occupation of an additional property, or
- an increase in the rateable value of a property occupied by the ratepayer in an area other than the Test Valley Borough Council area.
Charity and Community Amateur Sports Club Relief
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club, 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 club (or of that and other clubs). The council has discretion to give further relief on the remaining bill. Full details can be obtained from Test Valley Borough Council.
Retail, Hospitality and Leisure Relief Scheme
This scheme provides eligible, occupied, retail, hospitality and leisure properties with 40% relief, up to a cash cap limit of £110,000 per business. For more information on this relief, including details of how to apply, please visit www.testvalley.gov.uk/RetailRelief
Local Discounts
Local authorities have a general power to grant discretionary local discounts. Full details can be obtained from Test Valley Borough Council.
Rate Relief for Businesses in Rural Areas
Certain types of property in a rural settlement, with a population below 3,000, may be entitled to a discount. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500; or the only public house or the only petrol station and have a rateable value of less than £12,500. The property must be occupied. An eligible ratepayer is entitled to relief at 100% of the full charge. The council also has discretion to award up to 100% relief to businesses in rural settlements that do not fit the above criteria but whose rateable value is less than £16,500.
Full details of the above reliefs are included in Test Valley Borough Council’s Discretionary Rate Relief Policy which can be found here:
www.testvalley.gov.uk/business/land/business-rates/reliefs/discretionary-rate-relief/