Business rates

This section will give you an overview of the rating system and is intended to give a helpful outline of business rates, but it should not be regarded as a complete guide to the law.

You can request the appropriate forms (including NNDR Direct Debit mandate) to be issued to you by post by telephoning us on 01246 242490, or email revenues@bolsover.gov.uk

Non-Domestic Rates

The Non-Domestic Rates, or Business Rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services.

Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local authorities as part of the annual formula grant settlement. The money, together with revenue from council taxpayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by Bolsover District Council and other local authorities in your area.

Rateable Value

Apart from properties that are exempt from Business Rates, each non-domestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency, an agency of Her Majesty’s Revenue and Customs, which draws up and maintains a full list of all rateable values.

The rateable value of your property is shown on the front of your bill.  This broadly represents the yearly rent the property could have been let for on the open market on a particular date.  For the revaluation that came into effect on 1 April 2010, this date was set as 1 April 2008.

The valuation officer may alter the value if circumstances change.  The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they believe it is wrong.  Further information about the grounds on which appeals may be made and the process for doing so can be found on the VOA website or from your local valuation office.

National Non-Domestic Rating Multiplier

Bolsover District Council works out the Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier.

The former is higher to pay for small business rate relief. The Government sets the multipliers for each financial year for the whole of England, except in the City of London where special arrangements apply, according to formulae set by legislation. The multipliers change each year in line with inflation and to take account of the cost of small business rate relief. In the year of a revaluation, the multipliers are rebased to account for overall changes to the total rateable value and to ensure that the revaluation does not raise extra money for government. The current multipliers will be shown on the front of your bill.

Revaluation 2010 and Transitional Arrangements

All rateable values are assessed 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.

Whilst the 2010 revaluation will not increase the amount of rates collected nationally, within this overall picture, over a million properties will see their business rate liabilities reduced and some ratepayers will see increases.

For those that would otherwise see 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 also have to be 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 on a property at the time of the revaluation.  If there are any changes to the property after 1st April, 2010, the 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 relief) are not covered by the transitional arrangements.

The transitional arrangements are applied automatically and are shown on the front of this bill.  Further information about transitional arrangements may be obtained from us or the Business Rates website.

More information on revaluation 2010 can be found on the Valuation Office Agency website.

Further information about transitional arrangements may be obtained from My Business Rates website.

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

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 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.

Last Updated on Thursday, 21 July 2011 17:14