About Business Rates

National Non-Domestic Rates, or business rates, collected by Gedling Borough Council are the way that those who occupy non-domestic property contribute towards the cost of local services.

Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenue.

The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by local authorities in your area.

Business rates are taxes to help pay for local services. They’re charged on most non-domestic properties (including commercial properties), eg:

• Shops
• Offices
• Pubs
• Restaurants
• Warehouses
• Factories
• Holiday rental homes or guest houses

If you use a building or part of a building for non-domestic purposes, you’ll probably have to pay business rates.

The person or company that occupies a business premises will be liable to pay business rates, in the case of unoccupied properties, it is the person or company entitled to possession who is liable to pay business rates charges, this will usually be the leaseholder or owner of the property.

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of His Majesty's Revenue and Customs. They compile and maintain a full list of all rateable values, available at www.gov.uk/voa

The rateable value of your property is shown on the front of your 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 2023, this date was set as 1 April 2021.

The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.

Further information about the grounds on which challenges may be made and the process for doing so can be found on the VOA website

Gedling Borough Council work out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier.

There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier.  The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.

Properties with a rateable value below £51,000 are charged using the small business multiplier and properties with a rateable value of £51,000 or over are charged using the standard multiplier.

Both multipliers for a financial year are based on the previous year’s multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for September prior to the billing year, unless a lower multiplier is set by the government.

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1st April 2023.

Revaluations ensure that business rates bills are up-to-date and more accurately reflect current rental values and relative changes in rents.

Frequent revaluations ensure the system continues to be responsive to changing economic conditions.

At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.

Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills.

Further information about transitional arrangements may be obtained from the local authority or at www.gov.uk/introduction-to-business-rates

Business Rate Reliefs

Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e. a reduction in their business rates bill). There are a range of available reliefs. Further details are provided below and at www.gov.uk/introduction-to-business-rates

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. You should contact your local authority for details on the latest availability of business rates reliefs and advice on whether you may qualify.

If a ratepayer's sole or main property has a rateable value which does not exceed a set threshold, the ratepayer may receive a percentage reduction in their rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property.

For example eligible properties with a rateable value below a specified lower threshold will receive 100% relief while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief.

The relevant thresholds for relief are set by the Government by order and can be at www.gov.uk/introduction-to-business-rates

Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either—

(a) one property, or

(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set by order.

The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. 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 fixed additional period.

Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be obtained on our reliefs page or at www.gov.uk/introduction-to-business-rates  

Certain changes in circumstances will need to be notified to the local authority by the ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are—

(a) the property falling vacant,

(b) the ratepayer taking up occupation of an additional property, or

(c) 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.

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. Further information can be obtained on our reliefs page

Certain types of properties in a rural settlement with a population below 3,000 may be entitled to relief. 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 has to be occupied. An eligible ratepayer is entitled to relief at 100% of the full charge. Further information can be obtained on our reliefs page

We have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full information can be obtained by contacting us.  

Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are reoccupied. Full details on exemptions can be obtained from gov.uk at https://www.gov.uk/apply-for-business-rate-relief.

The new UK subsidy control regime commenced from 4 January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments.

The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website at: https://www.gov.uk/government/collections/subsidy-control-regime.

Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Charted 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 or company 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.

Information relating to the relevant and previous financial years in regard to the gross expenditure of the Council is available at www.gedling.gov.uk/financialinformation.

A hard copy is available on request by writing to the Council or by emailing revenues@gedling.gov.uk.

The Economic Development team at Gedling Borough Council can offer a range of support to local businesses. This includes:

•  Advice on vacant property and property searches if you are looking to move, relocate or start a business within the borough.
• Providing details of the current support available from the Council and partner organisations to support your business to grow.
• Guidance on recruitment including employment of apprentices and the financial support that is available to enable businesses to do this. 

If you would like to get in touch with a member of the team you can contact us at ecdev@gedling.gov.uk or on 0115 901 3736 or 0115 901 3863.