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Business Rates Reductions
Charities are entitled to relief from rates on any non domestic property wholly or mainly used for charitable purposes. Registered Community Amateur Sports Clubs (CASCs) 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 of any other such registered club. In both cases, relief is given at 80% of the full rate bill or of the transitional bill where the transitional arrangements apply.
Billing authorities have discretion to remit all or part of the remaining 20% of a charity or CASC's bill on such property as described above.
A billing authority also has the power to grant discretionary rate relief, to certain ratepayers, from all or part of the amount of non-domestic rate payable. This allows billing authorities to grant additional relief to registered charities (to top up the 80% mandatory relief) and also to non-profit making bodies (ie. not established or conducted for profit) including sports clubs. The level of rate relief is determined by the billing authority. This relief can be granted for a fixed period, and notice must be given if that relief is varied or revoked.
In considering an application from a sports club, the following factors will be taken into account:
If the applicant is a limited company, Mole Valley District Council (MVDC) would need to make a detailed inspection of the accounts to ascertain what profits, if any, are being made. Then an investigation would need to be made as to how the income/profit is used. For example, is any excess income/profit ploughed back into the club to further it's aims and to improve facilities for it's members. The constitution of the club and the objectives of the limited company would also have to be studied to ensure that these were not different.
Relief for Hardship and Part Occupation
To apply for hardship, local business ratepayers would need to supply evidence of the hardship encountered. This could take the form of accounts showing takings before and during the period in question. Any applications for hardship relief will be considered by the Executive who will take into account the interests of the council tax payers, as any award would be part funded from the council tax.
In exceptional circumstances, business premises that are only partly occupied for a temporary period may be entitled to some relief based on the unoccupied part, for example:
In these circumstances a certificate will be requested from the valuation office to show the respective rateable values of the occupied and unoccupied parts of the property.
Rural Rate Relief
Mandatory Rural Rate Relief
The occupier of a general store or post office in one of the above is entitled to rate relief if it is the only such store or post office in that settlement and its rateable value is £8,500 or less. Where a part or the whole of a property is used as a Public House or Petrol Filling Station, the rateable value limit for this relief is £12,500. Relief is given at 50% of the rate bill. Billing authorities have discretion to remit all or part of the remaining 50%.
Discretionary Rural Rate Relief
There is also discretion to remit all or part of the rate bill on other property in one of the settlements below. The rateable value must be £16,500 or less and the authority should be satisfied that the property is used for a purpose, which benefits the local community.
The following settlements within Mole Valley qualify in line with the relevant legislation:
Local Discretionary Relief Scheme
At the Spring Budget, the Government announced the establishment of a £300m discretionary fund over four years from 2017-18 to support those businesses that face the steepest increases in their business rates bills as a result of the 2017 revaluation.
The intention is that every billing authority in England will be provided with a share of the £300m to support their local businesses. Billing authorities will be expected to use their share of the funding to develop their own discretionary relief schemes to deliver targeted support to the most hard-pressed ratepayers.
Please see 'Downloads' for Mole Valley's local discretionary scheme in full.
Small Business Rate Relief
Small business rate relief can be claimed by any small business with a rateable value of under £15,000. The relief is applied an a sliding scale between £12,000 and £15,000 with RateableValues of £12,000 or under receiving 100% relief as long as the qualifying criteria are met.
The government has also introduced additional support to small businesses. For those that take on an additional property which would normally have meant the loss of small business rate relief, the government has confirmed they will be allowed to keep that relief for a period of 12 months. More information can be found on GOV.UK.
Support for Pubs
In the Spring Budget of 2017, the Government announced a new relief scheme for pubs that have a rateable value of below £100,000. Under the scheme, eligible pubs will receive a £1000 discount on their bill. The relief was originally just for the 2017/18 rating year, but in the Autumn budget of 2017 it was extended for another year to include 2018/19.
All qualifying public houses were identified and asked to return a 'State Aid' declaration before the relief could be awarded. If you believe your establishment would qualify for the relief, please contact our Business Rates section on 01306 879293.
How to Apply for Relief
To apply for rate relief, download a form from the bottom of the page, complete and return it to the address provided. If you have any queries, please email firstname.lastname@example.org.
© 2018 Mole Valley, Pippbrook, Dorking, Surrey, RH4 1SJ.
Tel: +44 (0)1306 885001 Fax: +44 (0)1306 876821, 2018.