Frequently Asked Questions
Who pays Business Rates?
What will happen if I don't pay?
How is the business rate calculated?
What’s transitional relief?
What should I do if I decide to move?
What is the rateable value and how can I find out what mine is?
Are all businesses rateable?
How can I appeal against my rateable value?
What happens if my rateable value changes?
What does "...and Premises" refer to on the description of my property?
Do I have to employ a rating adviser to appeal against my rateable value?
What happens if the property is left unoccupied?
Exemptions from Empty Rates
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Who pays Business Rates? Top of page
The occupier of the non-domestic property normally pays the business rates. Usually this is the owner-occupier or the leaseholder. If a business property is empty, the owner or leaseholder will have to pay a reduced rate.
If a property is empty and un-used there will not be any business rates to pay for the first three months. If there is a change of owner during or after the 3 month period there is no new commencement of the 3 month period. The new owner may benefit from any remaining time within this 3 month period but otherwise a new owner will be immediately liable to pay an empty property rate. After that period, you will have to pay an empty property rate, which is 50% of the normal bill. To qualify for a three-month exemption the property must have been occupied continuously for six weeks prior to it being vacated.
For industrial properties, small properties with rateable values less than £2,200 and listed properties, there is no charge for empty property rates even after the first three months have passed.
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What will happen if I don’t pay? Top of page
If you miss an instalment you will get a reminder notice giving you 7 days to bring your payments up to date.
If you do not bring your payments up to date or fall behind again later, you will have to pay the full outstanding balance on your account.
If you do not pay the outstanding balance, a summons will be sent to you which means that costs will be added to your account.
After sending a summons, we will ask the Magistrates Court to issue a liability order which can be sent to a bailiff if you do not make a payment arrangement with us or you fail to make the payments you have promised. If your case is passed to a bailiff, more costs will be added to your account.
If you are having difficulties in paying your business rates, please contact us as soon as you can so that we can discuss payment options with you.
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How is the business rate calculated? Top of page
We work out your bill by multiplying the rateable value of your property by the rate poundage, which the Government sets each April. The rate poundage figure applies to every property in England.
For example, the rate poundage for 2008/2009 is 46.2p. If your rateable value was £20,000 we would multipy this by 46.2 and the amount you would have to pay for the year would be £9,240.
The amount quoted in the example could be reduced or increased if transitional arrangements apply to your property.
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What’s transitional relief? Top of page
Following the introduction of business rates on 1st April 1990, many ratepayers faced large increases in the amount they would have to pay, whilst others anticipated considerably reduced bills.
To cushion the blow for businesses facing large increases, the Government introduced legislation to limit the amount the business rate could go up. This scheme, known as transitional relief, is financed by also placing a limit on the amount that rates can go down.
This phasing scheme recommences with each 5 yearly revaluation.
The scheme applies only to the bill based on a property at the time of revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in rateable value due to these changes. Special rules apply when rateable values change or existing properties are merged or split. Further information about transitional arrangements may be obtained from the Council or by clicking here.
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What Should I do if I decide to move? Top of page
The Council will require the following information:
1. The address of the property that you have vacated, along with the account number,
2. The date that you vacated the property,
3. The details of the owner of the property,
4. Your forwarding address,
5. The date you will move goods into the new property (if within the North Dorset area),
6. The date of any subsequent property transfer e.g. freehold or leasehold transfer,
7. The use for which the property is next intended.
8. Any other information that may relate to your liability for Business Rates.
The information will be used to determine the extent of your liability and, possibly, any exemptions or reliefs that you may be entitled to.
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What is the rateable value and how can I find out what mine is? Top of page
All business properties have a rateable value, which is determined by the Valuation Office Agency. The Valuation Office Agency (VOA) is an executive agency of the Inland Revenue (IR) with 80 offices spread throughout England, Wales and Scotland. A full list of all rateable values are available on their website at www.voa.gov.uk.
Following the property revaluation that came into effect on 1 April 2005, the rateable value is representative of the annual rent the property could have been let for on the open market as at 1st April 2003. Further revaluation’s will take place every five years to ensure that values are kept up to date and make sure that each bill is fair.
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Are all businesses rateable? Top of page
Generally, business rates are payable on most commercial properties like shops, offices and hotels. Self-catering accommodation such as holiday homes are also liable for business rates where they are available for use by short stay guests for 140 days or more per year.
There is no liability to pay business rates on the following properties:
1. churches
2. public parks
3. farm land and buildings
4. moorings
5. sewers
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How can I appeal against my rateable value? Top of page
All business properties have a rateable value, which is determined by the Valuation Office Agency (VOA) and are available on their website at www.voa.gov.uk
The Valuation Officer may change the rateable value of a property if he or she feels that circumstances have changed since the last valuation. The business ratepayer (and other parties who have an interest in a specific property) may also propose changes to the assessment.
In cases where the Valuation Officer and a business ratepayer are unable to reach agreement about a change in rateable value, the matter can be referred as an appeal to a Valuation Tribunal.
Information about the circumstances, which may require a change of rateable value, and how to apply may be obtained from:
The Valuation Office Agency
Holland House
Oxford Road
BournemouthBH8 8EF
Telephone: (01202) 702000
Website www.voa.gov.uk
If you submit a request for a change in rateable value, your existing bill must be paid as detailed on your account. Any necessary adjustments will be made when we are notified of the Valuation Officer’s decision.
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What happens if my rateable value changes? Top of page
If the Valuation Office Agency (VOA) amends your rateable value, they will notify you of the change in writing. We will recalculate your bill and work out the new amount that you have to pay. If your bill is subject to transitional arrangements you may find that a change in the rateable value of your property following an appeal makes no difference to the amount you pay.
If you submit a request to the Valuation Office Agency for your rateable value to be changed, you must continue to pay the instalments shown on your bill until a new value is agreed. Any amounts, which have been overpaid, will be refunded to you and will be subject to interest providing the Council has not obtained a liability order at the Magistrates Court for non-payment of the business rate.
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What does "...and Premises" refer to on the description of my property? Top of page
The vast majority of business properties have "…. and Premises" after the main description of the property, i.e. "Shop and Premises" or "Office and Premises". The "…. and Premises" refers to perhaps a storage area or a cloakroom facility used in connection with the business property and does not refer to any part of the property used for domestic living accommodation.
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Do I have to employ a rating adviser to appeal against my rateable value? Top of page
You do not have to be represented in discussions about your rateable value. Appeals against rateable values can be made free of charge. However, if you do wish to be represented you should be aware that the members of the Royal Institution of Chartered 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, 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.
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What happens if the property is left unoccupied? Top of page
Empty Rates are payable on a property if no part of the property is occupied and the property is not in an exempt class or the rateable value is more than £2,200.
There is no liability for rates where a property has been continuously unoccupied for a period of three months after it ceases to be occupied or from the day that it is determined as its ‘completion date’ in respect of new properties. If after this three month period, the property is sub-divided or there is a new owner, there is not another ‘free’ period.
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Exemptions from Empty Rates Top of page
Where an unoccupied property is prohibited by law from occupation, no empty rates are payable. This situation may arise where a Council has taken legal steps to prevent occupation as a risk to health or safety. Similarly, properties kept vacant by the actions of the Crown or local or public authority with a view to prohibiting occupation or acquiring it.
Listed buildings are exempt provided that they are included in a list of buildings of special architectural or historic interest or subject to a building preservation notice under the terms of the Town & Country Planning Act 1971 and the Planning (ListedBuildings and Conservation Areas) Act 1990.
Personal Representatives of deceased persons are exempt together with insolvency and debt administration entitled to possession only in their respective representative capacities.
Ancient Monuments that are included in the schedule of monuments compiled under Section 1 to the AncientMonuments and Archaeological Areas Act 1979 are also exempt.
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