Article: Business rate reductions Article Body Ratepayers can benefit from a number of reliefs and exemptions that reduce the amount payable on their business rates bill. These include the following: Rates exemptions Small business rate relief Relief for charities and registered community amateur sports clubs (Casc's) Discretionary relief for non profit making organisations Rural rate relief Hardship relief Partial occupation relief Ratepayers are advised to contact the council if they wish to apply for relief rather than employ or take up an offer from a rating agent otherwise contractual commission charges, sometimes substantial, may be incurred for obtaining a reduction in the charge. Rates exemptions A general exemption from business rates applies to agricultural land and buildings, fish farms, churches and other places of worship, sewers, public parks, certain properties used for disabled people and moorings for boats. Other properties may become entitled to exemption based on individual circumstances. Properties that become unoccupied are normally exempt from rates charges for the first three months the property is empty, or six months in the case of industrial properties. A qualifying industrial property is one in which all buildings within the property are: (a) constructed or adapted for use in the course of trade or business, and (b) constructed or adapted for the use of one or more of the following purposes: the manufacture, repair, or adaption of goods or materials, or subjection of goods to any process storage, including the handling of goods the working or processing of materials the generation of electricity After the rate free exempt period empty rate charges are normally payable at the full (100%) rate. The government recognised the pressure on owners of empty business properties to let, occupy or dispose of their premises. As a temporary measure properties with a rateable value up to £15,000 were given exemption from empty rates in 2009/2010. This was extended, and in 2010/2011 all properties with a rateable value up to the threshold of £18,000 were exempt from empty rate charges. From 1 April 2011 the threshold for exemption for empty rates is £2,600. Properties can also be fully exempt from business rates in the following circumstances: unoccupied properties owned and likely to be next occupied by a charity or community sports club properties prohibited from occupation by law properties kept empty due to action taken by/on behalf of the Crown or any local or public authority with a view to prohibiting occupation or acquiring it unoccupied listed buildings, properties subject to a building preservation notice and properties scheduled as ancient monuments where the owner is entitled to possession of the property only in the capacity as the personal representative of a deceased person where the owner is a liquidator or a trustee under a deed of arrangement, or the owner is subject to a bankruptcy order, or as a company is subject to a winding up order or administration order where the occupier is only entitled to occupy the property as an executor of a deceased person Claiming an exemption If you wish to apply for an exemption please contact the Rates Office see business rates account enquiries and provide full details of the grounds on which you are making your claim. Small business rates relief Relief is available to assist small businesses in reducing their rate liability. Businesses granted (or already receiving) relief will continue to receive a reduction in their charge without having to reapply, providing they remain eligible for it. Relief thresholds were increased from 1 April 2010 to take account of the rateable value changes brought about by the 2010 business rates revaluation. As a result small business rate relief will now be granted to ratepayers who occupy either: (a) one property, or (b) one main property and other additional properties, including any not in the Barnsley area, of up to a rateable value of less than £2,600 each. Under this criteria the rateable value of the property in (a) or the aggregate rateable value of all properties mentioned in (b) must now be less than £18,000. Ratepayers satisfying the qualifying conditions, with a total rateable value of less than £18,000, will have the rates bill for their single or main property calculated by using the lower small business non domestic multiplier rather than the higher standard non domestic multiplier which is applied to larger businesses. From 1 April 2012 all properties with a rateable value below £18,000 will be charged using the lower small business relief multiplier. In 2012/2013 this means the multiplier used will be 0.45p rather than 45.8p. There is no need to complete an application form to receive these changes based on the reduced multiplier. Qualifying ratepayers with a rateable value of up to £12,000 will be entitled to an additional percentage reduction in the rates bill on their single or main property. An application form must be completed to receive the percentage reduction. Under the original provisions ratepayers with a rateable value up to and including £6,000 received a 50% relief entitlement on a property and relief on a sliding scale of between 50% and 0% was granted on properties valued between £6,000 and not more than £12,000. In the 23 March 2011 budget the Chancellor announced that the temporary increase in small business relief, which started on 1 October 2010 and was due to end on 30 September 2011, would continue for a further year. This has now been increased and will continue until 31 March 2013. These measures double the usual rate of relief applied to small businesses so that ratepayers with rateable values below £6,000 pay no rates at all for the period (up to 31 March 2013), while ratepayers with rateable values of between £6,000 and not more than £12,000 receive tapered relief from 100% to 0%. Small business relief cannot be granted to ratepayers who receive mandatory relief for charities. Making a claim Small business rate relief applications can be made by completing an application for small business relief and returning it to the Rates Office. For more information contact the Rates Office see business rates account enquiries Relief for charities and registered community amateur sports clubs (Cascs) Ratepayers who are registered charities or registered community amateur sports clubs (Cascs) are entitled to 80% mandatory relief to reduce their business rates bill, where the property is occupied wholly or mainly for charitable purposes or the objects of the club. Relief can also be granted where a property is unoccupied and it is intended that it be used for charitable purposes when next occupied. Organisations seeking mandatory relief due to charitable status must be registered as a charity under the Charities Act 1960, which is conclusive evidence of charitable status, or alternatively be exempted from registration as a result of other legislation such as the Friendly Societies Act. Any request to register as a charity should be made direct to the Charity Commission. More information on charitable registration can be obtained from The Charity Commission. Charity shops can be granted mandatory relief on their premises provided they are used wholly or mainly for the sale of goods donated to the charity, and the proceeds of sale (after the deduction of expenses) are used for the purposes of the charity. Community amateur sports clubs must be registered with HM Revenue and Customs Charities Sports Club Unit in order to receive 80% mandatory relief from rates on any non domestic property that is wholly or mainly used for the purpose of that club, or that club and other such registered clubs. A Casc must also: be run as an amateur club allow access to the whole community be a non profit making organisation aim to provide facilities and encourage people to take part in sport More information on registration for Casc status can be obtained from HM Revenue and Customs. Making a claim Applications for mandatory relief for charities and registered community amateur sports clubs (Cascs) can be made by completing an application for relief - charitable and other organisations and returning it to the Rates Office. All applicants claiming relief must provide their charity registration number, where applicable, and the following documents with their application: a copy of the memorandum and articles of association or rules of the association copies of the audited accounts/balance sheets for the last two years (or if audited accounts are not available then copies of financial statements prepared by an appropriate officer of the organisation) a copy of the tenancy agreement (where applicable) A decision will not be made without this information. Additional discretionary relief can also be granted to registered charities and Cascs. Discretionary relief for non profit making organisations The council has the power to grant discretionary business rates relief in respect of organisations that are not established or conducted for profit and where the objects of such organisations are charitable. Discretionary relief of up to 100% can be granted in certain circumstances. Charities that are registered under the Charities Act 1960, or are exempt under another act and community amateur sports clubs (Casc's) can also qualify for additional top up discretionary relief in certain circumstances. A club, society or other organisation that is not established or conducted for profit where the property concerned is occupied for the purposes of the organisation and the: main objectives are charitable or are otherwise philanthropic or religious, or concerned with education, social welfare, science, literature and the fine arts; or property is used wholly or mainly for the purpose of recreation by a not for profit club or society, or organisation is entitled to mandatory relief Legislation restricts the period for which claims for discretionary relief can be considered. Applications determined by the council before 30 September can if appropriate, be allowed for both the current and previous financial year. Those not determined until after 30 September can only be allowed from 1 April in the current financial year. The council cannot guarantee to process a claim for relief in respect of a previous financial year where an application and supporting evidence are received after 31 August. For more information contact the Rates Office see business rates account enquiries. Making a claim Applications for discretionary relief can be made by completing an application for relief - charitable and other organisations and returning it to the Rates Office. Applications will need to include: a copy of the memorandum and articles of association or rules of the association copies of the audited accounts and balance sheets for the last two years (if audited accounts are not available then financial statements prepared by an appropriate officer of the organisation should be provided) a copy of the tenancy agreement (where applicable) The council will need information on how the organisation is run before considering a request for relief and therefore you will be required, where applicable, to state: what contribution the organisation makes to the amenities of the area whether membership is open to all the community if the organisation encourages open membership, for example all age groups, either sex etc the range of facilities provided by the organisation whether the facilities it offers are available to non-members, for example schools or other groups if the organisation provide teaching skills, facilities for the community, for example the disabled whether the facilities have been provided by self-help or if they are substantially grant aided if the organisation has received any other support from the council whether members pay a subscription and if so what this amounts to how any savings resulting from relief being granted will be used for sporting organisations only, is there any distinction between playing and non-playing members the name and address of the owner of the property for which relief is being claimed An application cannot be considered without this supporting information. Rural rate relief Certain types of businesses in rural areas that are situated in settlements with a population below 3,000 may be entitled to mandatory rate relief to reduce their charge by 50%. The council is required to draw up a rural settlement list identifying rural areas in the borough that have a population of 3,000 or less. The list is reviewed each year and a copy can be obtained by contacting the Rates Office. In order to qualify for mandatory relief a property must be occupied and included in a rural settlement in which it is: the only general store, the only post office or the only food shop with a rateable value of less than £8,500 or the only public house or the only petrol filling station with a rateable value of less than £12,500 A general store is defined as one in which a trade or business is carried on consisting wholly or mainly of the sale by retail of both food for human consumption (excluding confectionery) and general household goods. An application for mandatory relief can made by completing the application for mandatory rate relief - village shop rate relief scheme form. Further information and assistance can also be obtained by contacting the Rates Office. The council has discretion to top-up the relief to 100% by granting additional discretionary relief. The council can also grant discretionary relief, of up to 100%, to other businesses situated in a rural settlement area, which have a rateable value less than £16,500, providing a business can show that it is of benefit to the local community. Properties in receipt of rural rate relief are not eligible to receive small business rate relief. For more information contact the Rates Office see business rates account enquiries. Making a claim An application for discretionary relief can made by completing the rural rate relief scheme - application for discretionary rate relief form and returning it to the Rates Office. Hardship relief The council has discretion to reduce business rates in special cases where hardship has been caused through exceptional circumstances. Relief granted on the grounds of hardship can amount to 100% of the rates liability. Consideration will only be given where a ratepayer can provide evidence to show that hardship, affecting the viability of the business, has been incurred which is not in the nature of a normal business risk, or within the control of the ratepayer. Applications are considered based on the individual merits of each case. For more information contact the Rates Office see business rates account enquiries. Making a Claim An application for hardship relief can be made by completing the hardship relief application form and returning it to the Rates Office. Partial occupation relief Where a property is partially occupied for a temporary period, for example when a phased occupation of vacation takes place or refurbishment is ongoing, the council has discretion to request that the Valuation Office Agency (VOA) to certify the values attributable to the empty parts of the property. If agreed the rates on each part will be calculated so that full rates are charged on the occupied part and empty rates are charged on the unoccupied part. Reductions will only apply for up to three months, or six months in the case of an industrial property, following which the full charge will be reapplied (unless the empty part is otherwise exempt). Ratepayers will be required to provide details about the temporary nature of the partial occupation, and a plan showing the occupied and unoccupied parts. Premises will be subject to inspection and therefore applications will not normally be accepted where a retrospective request for a reduced charge is made. Making a claim Partial occupation relief can be requested by contacting the Rates Office see business rates account enquiries. Changes in circumstances If you receive or become entitled to a relief that reduces your rates bill, you must notify the council immediately if you experience a change in circumstances that may alter your entitlement. Notification can be made by contacting the Rates Office see business rates account enquiries. More information Click on business rates account enquiries for information including: contact details viewing your account online methods of payment application forms The business rates account number should be quoted when making an enquiry. Additional information To learn more about our compliments, comments and complaints process please see general complaints. Other useful websites Communities and Local Government Business Matters Business Link Institute of Revenues, Rating and Valuation Royal Institute of Chartered Surveyors