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About Business Rates

Business rates are charged on most non-domestic properties, like: shops, offices, pubs, warehouses, factories, holiday rental homes or guest houses.

We will send you a business rates bill in February or March each year. This is for the following tax year. You can estimate your business rates bill online. 

What are 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.

Who has to pay?

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.

Rateable value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency, an agency of Her Majesty’s Revenue and Customs. They draw up and maintain a full list of all rateable values which are available on their website

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 comes into effect on 1 April 2017, this date was set as 1 April 2015.

You can find and review your rateable value on the Valuation Office Agency website.

If you have reason to believe that your 2017 rateable value is not correct, follow the instructions provided on the site.  You will need to do the following (not available until 1 April 2017):

  • CHECK - review and confirm the facts about your property held by the Valuation Office Agency
  • CHALLENGE - once the facts are established, explain why you believe your valuation is wrong.

An appeal on your 2017 rateable value is not possible, and may not be necessary, until you have completed CHECK and CHALLENGE.

Further information about the grounds on which appeals can be made and the process for doing so can be found on the Valuation Office Agency website

National non-domestic multiplier

Gedling Borough Council works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier.

There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rates relief. Except in the City of London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation.

Between revaluations the multipliers generally change each year in line with the Retail Price Index in September of the previous year and to take account of the cost of small business rates relief. The calculation of the multipliers has taken account of the Government's decision in the Autumn Statement 2014 to cap the inflation increase to 2% in 2015-16.

The current multipliers are shown on the front of your bill. Below is a list of all multipliers.

 

Year

Small Business Rates Relief Multiplier

Standard Multiplier

2021/22

  51.2

  49.9

2020/20

  49.9

  51.2

2019/20

  49.1

  50.4

2018/19

  48.0

  49.3

2017/18

  46.6

  47.9

2016/17

  48.4

  49.7

2015/16

  48.0

  49.3

2014/15

  47.1

  48.2
2013/14   46.2   47.1
2012/13   45.0   45.8
2011/12   42.6   43.3
2010/11   40.7   41.4
2009/10   48.1   48.5
2008/09   45.8   46.2
2007/08   44.1   44.4
2006/07   42.6   43.3
2005/06   41.5   42.2
2004/05   N/A   45.6
2003/04   N/A   44.4
2002/03   N/A   43.7
2001/02   N/A   43.0
2000/01   N/A   41.6
1999/00   N/A   48.9
1998/99   N/A   47.4
1997/98   N/A   45.8
1996/97   N/A   44.9
1995/96   N/A   43.2
1994/95   N/A   42.3
1993/94   N/A   41.6
1992/93   N/A   40.2
1991/92   N/A

  38.6

1990/91

  N/A

  34.8

Revaluation

The Valuation Office Agency carries out a regular revaluation of rateable values to ensure bills paid by any one ratepayer reflect changes over time in the value of their property relative to others. This helps maintain fairness in the rating system by updating valuations in line with changes in the market.

A revaluation usually happens every 5 years, however this time the government delayed it for a further two years. The next revaluation will take effect from 1 April 2017 based on rateable values from 1 April 2015.

In the year of revaluation the multipliers are rebated to account for overall changes to the total rateable value and to ensure that the revaluation does not raise extra money for Government. Similarly, the change in the revaluation date to 2017 has no effect on the total amount of revenue raised from business rates.

You can find and review your rateable value on the Valuation Office Agency website.

If you have reason to believe that your 2017 rateable value is not correct, follow the instructions provided on the site.  You will need to do the following (not available until 1 April 2017):

  • CHECK - review and confirm the facts about your property held by the Valuation Office Agency
  • CHALLENGE - once the facts are established, explain why you believe your valuation is wrong.

An appeal on your 2017 rateable value is not possible, and may not be necessary, until you have completed CHECK and CHALLENGE.

Transitional arrangements

For those ratepayers who would otherwise have seen significant increases in their rates liability, the Government has put in place a £3.6 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. 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 appropriate 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 1st April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. Changes to your bill as a result of other reasons (such as because of changes to the amount of small business rates relief) are not covered by the transitional arrangements.

The transitional arrangements are applied automatically and are shown on the front of your bill.

Business rates explanatory notes

National Non-Domestic Rates

Non-Domestic Rates, or business rates, collected by the 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 1st April 2013, the Council keeps a proportion of the business rates paid locally. The money, together with revenue from council tax payers, locally generated income and grants from central government, is used to pay for the services provided by the Council. Further information about the business rates system may be obtained at www.gov.uk/introduction-to-business-rates.

Business Rates Instalments

Payment of business rate bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow businesses to require the Council to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact us as soon as possible.

National Non-Domestic Rating Multiplier

The Council works 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.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are neither entitled to certain other mandatory relief(s) nor liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier.

Both multipliers for this financial year are based on the previous year's multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year. The current multipliers are shown on the front of your bill.

Rateable Value

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 Her 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 specified in legislation. For the current rating list, this date was set as 1st April 2015. 

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 obtained by contacting the VOA, or by consulting the VOA website www.gov.uk/guidance/how-to-check-your-rateable-value-is-correct.

Revaluations

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1st April 2017. 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.

Business Rates 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.

Temporary Reliefs

Some of the permanent reliefs are set out below but temporary reliefs are often introduced by the Government at Budgets. Further detail on current temporary reliefs is available at www.gov.uk/apply-for-business-rate-relief. You should contact the Council for details on the latest availability of business rates reliefs and advice on whether you may qualify.

Small Business Rates Relief

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. Eligible properties between that threshold and a specified upper threshold will receive partial tapered relief.

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

Certain changes in circumstances will need to be notified to the Council by a ratepayer who is in receipt of relief (other changes will be picked up by the Council). 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 Council which granted the relief.

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).

We have discretion to give further relief on the remaining bill. If this applies to you please contact us.

Transitional Rate Relief 

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. Such relief schemes are funded by limiting the reduction in bills for those who have benefitted from the revaluation. Transitional relief is applied automatically to bills.

Further information about transitional arrangements and other reliefs may be obtained from the Council or the website www.gov.uk/introduction-to-business-rates.

Local Discounts and Hardship Relief

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

Unoccupied Property Rating

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 the Council or from gov.uk at https://www.gov.uk/apply-for-business-rate-relief.

State Aid

The award of discretionary relief(s) is considered likely to amount to state aid. However, it will be state aid compliant where it is provided in accordance with the De Minimis Regulation EC 1407/2013.

The De Minimis Regulation allows an undertaking to receive up to €200,000 'de minimis' aid over a rolling three-year period. If you are receiving, or have received, any 'de minimis' aid granted during the current or two previous financial years (from any source), you should inform the Council immediately with details of the aid received.

Rating advisers

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 Chartered Surveyors (RICS – www.rics.org) and the Institute of Revenues, Rating and Valuation (IRRV – 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 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 Supplied with Demand Notices

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.

Support for Businesses

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.