Using a Rating agent to apply for relief
We are aware that some ratepayers are being approached by companies that promise to act on their behalf to reduce their rates liability – and that a minority of these companies are subsequently charging fees for ‘securing’ access to existing reliefs to which the ratepayer is already entitled.
It is Rochford District Council and the Government’s view that these companies and agents are unnecessarily diverting business rate relief that is intended to help businesses into their own pockets – for example where little to no additional work is needed to obtain the relief.
We wish to make clear that all Business Rates reliefs and discounts can be obtained for free through Rochford District Council. You do not require a rating agent to do this on your behalf.
Small business rate relief
With effect from 1st April 2017 a Small Business Rate Relief multiplier is automatically awarded to any occupied property with a rateable value up to £51,000.
You can qualify for an additional small business rate relief discount if the rateable value of your property is less than £15,000 and if it is the only non-domestic property that you use.
If you qualify for small business rate relief discount, you will not have to pay business rates on a property with a rateable value of £12,000 or less.
Relief decreases on a sliding scale from 100% to 0% for properties with rateable values between £12,001 and £14,999.
If you have more than one occupied property, you may still qualify for relief on your main property if both of the following apply:
- None of your other properties have a rateable value above £2,899
- The total rateable value of all your properties is less than £20,000
If you take on an additional property that would normally mean your entitlement to the relief ends you will keep the existing relief for a period of 12 months.
If your circumstances change at any point you must advise us in writing immediately.
Full details can be found on the Small Business Rates Relief online application form.
Retail, Hospitality and Leisure Relief Scheme
The government provides relief to certain occupied Retail, Hospitality and Leisure premises. A list of the types of business entitled to this relief can be found in the Eligibility criteria for Retail, Hospitality and Leisure Relief Scheme.
Properties must be occupied, not empty.
For the period 1st April 2023 until 31st March 2025 the discount is 75%.
Confirmed during the Budget on 30th October 2024, for the period 1st April 2025 to 31st March 2026 the discount will continue at a level of 40%.
From 2026/27 the Government intends to introduce permanently lower business rates multipliers for high street Retail, Hospitality and Leisure properties.
The rules for entitlement to the relief will change and there will be a cash cap limit of £110,000 per business. Under the cap, no ratepayer will be able to in any circumstances exceed the £110,000 limit across all of their properties in England. This cash cap applies at a group company level so holding companies and any subsidiaries are treated as single company.
Full details can be found on the Retail, Hospitality and Leisure Relief form.
This relief can be backdated until 1st April 2023.
Supporting Small Business Relief
The 2023 Supporting Small Business scheme will cap bill increases at £600 per year for three years to any business losing eligibility for some or all Small Business Rate Relief at the 2023 revaluation. This cash maximum increase ensures that ratepayers do not face large bill increases in 2023/24, 2024/25 & 2025/26 after transitional relief and small business rate relief (as applicable) have been applied.
This relief has been automatically awarded to any qualifying properties and ratepayers will be contacted concerning their individual entitlement.
Improvement Relief
Improvement Relief commences from 1st April 2024 and will apply to works completed between 1st April 2024 and by 31st March 2028 (with qualifying works completed by that date benefitting from 12 months of relief).
This relief will support businesses wishing to invest in their property. It will ensure that no ratepayer will face higher business rates bills for 12 months as a result of qualifying improvements to a property they occupy.
The works should increase the area of any building in or on the property, otherwise improve the physical state of the property or add to it rateable plant and machinery. Therefore, neither a newly constructed hereditament nor a refurbished property (which had left the rating list during the works) will qualify. A change of use alone or the addition of land also will not qualify.
The Valuation Office Agency will notify Rochford District Council of any qualifying works. The same ratepayer has to have been “the occupier” on each day since the day the qualifying improvement works commenced in order to qualify.
This scheme will run until 1st April 2029.
Empty Property Relief
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. The change of ownership or liability does not entitle the ratepayer to a fresh period of exemption.
After this period rates are usually payable in full.
Some properties can get extended empty property relief:
- industrial premises (eg warehouses) are exempt for a further 3 months
- listed buildings - until they’re reoccupied
- buildings with a rateable value under £2,900 - until they’re reoccupied
- properties owned by charities - only if the property’s next use will be mostly for charitable purposes
- community amateur sports clubs buildings - only if the next use will be mostly as a sports club
Contact us for more details
Charitable Bodies
A registered charity occupying a property for charitable purposes is entitled to a reduction of 80% on its business rates bill. Other non-profit organisations whilst not registered charities may also qualify for this reduction. These include: Church commissioners, voluntary schools and certain universities and colleges.
In addition some sports clubs are eligible for mandatory rate relief. If you are a registered C.A.S.C (community amateur sports club) you can apply for charitable relief.
Make an application for mandatory relief
Discretionary Rate relief
The Council has discretion to award rate relief to other bodies for example sports clubs or leisure groups in its area, which are set up as non profit making but which are not charities. Local authorities also have the discretion to top up mandatory charitable and rural relief to a maximum of 100%. Each application is considered on its merit.
Make an application for discretionary relief
Rural rate relief
With effect from 1st April 2017 to qualify for 100% mandatory rate relief under the rural rate relief scheme, the property must:
- be within the boundaries of a qualifying settlement.
- have a rateable value of not more than £8500 if it is a general store, qualifying food store or post office
- have a rateable value of not more than £12500 if it is a public house or petrol filling station
- be used, in whole or part, as a petrol filling station, public house, general store or the only post office, or both
- be the only petrol filling station, the only public house, the only general store or the only post office in the settlement.
It is possible for both a General Store and a Post Office in the settlement to qualify for mandatory rate relief, provided that both meet the criteria.
A copy of our rural settlement list is available on request.
Discretionary Non-Domestic Rate Relief Policy
Our Discretionary Relief Policy gives details on all the discretionary reliefs available, the criteria for each scheme and the Councils approach to awarding the relief.