Business Rates 2012-13


Rates information for businesses Contact: 01724 296095 email: nndr@northlincs.gov.uk


Revaluation 2010 and Transitional Arrangements All rateable values are reassessed every five years at a general revaluation. The current rating list is based on the 2010 revaluation. Five- yearly revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others. Revaluation does not raise extra money for Government. For those ratepayers who would


otherwise have seen significant increases in their rates liability, the Government has put in place a £2 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2010 revaluation. To help pay for the limits on increases in bills, there were also 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 1 April 2010, 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 rate relief) are not covered by the transitional arrangements. The transitional arrangements are


applied automatically and are shown on the front of your bill. More information on revaluation


2010 can be found at www.voa.gov.uk


Unoccupied property rating Business rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period rates are payable in full unless the unoccupied property rate has been reduced by the Government by order. In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the


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unoccupied property rate. Full details on exemptions can be obtained from the local authority. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of your bill.


Partly occupied property relief A ratepayer is liable for the full non- domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the local authority has discretion in certain cases to award relief in respect of the unoccupied part. Full details can be obtained from North Lincolnshire Council.


Small business rate relief Ratepayers who are not entitled to another mandatory relief or are liable for unoccupied property rates and occupy a property with a rateable value which does not exceed £17,999 outside London or £25,499 in London will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier. In addition, if the sole or main property is shown on the rating list with a rateable value which does not exceed £12,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 50% for a property with a rateable value of not more than £6,000. This percentage reduction (relief) is 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 £2,599. The rateable value of the property


mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £17,999 outside London or £25,499 in London 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. An application for Small Business


Rate Relief is not required. 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 local authority by a 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 ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief, and (b) 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.


Charity and Community Amateur Sports Club (CASC) 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 local authority has discretion


to give further relief on the remaining bill. Full details can be obtained from North Lincolnshire Council.


Non-profit making organisation relief The local authority has discretion to give relief to non-profit making organisations. Full details can be obtained from North Lincolnshire Council.


Local Discounts and Hardship relief The local authority has discretion to give relief in specific circumstances. Full details can be obtained from North Lincolnshire Council.


Rate Relief for businesses in rural areas 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 50% of the full charge whilst the local authority also has discretion to give further relief on the remaining bill. In addition, the local authority can give relief on certain other occupied property in a rural settlement where the rateable value is less than £16,500. Full details can be obtained from North Lincolnshire Council.


Cancellation of Backdated Rates Liabilities The Government has, through the Localism Act 2011, taken a power to allow for the cancellation of certain backdated rates bills that accrued on the 2005 rating list only. Information on the type of backdated rates liability that can be cancelled is available with Business Rates Information letter titled Cancellation of Backdated Rates www.communities.gov.uk/ localgovernment/ localgovernmentfinance/ businessrates/ busratesinformationletters/


Rating advisers Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS--website www.rics.org) and the Institute of Revenues, Rating and Valuation (IRRV- -website 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, 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 local authority is available at www.northlincs.gov.uk. A hard copy is available on request by writing to the council or phone 01724 297000.


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