Pendle Borough Council
Market Street, Nelson, Lancashire BB9 7LG
Tel: 01282 661661 Fax: 01282 661130
Business Rates 2004/2005
Non-Domestic Rates
The non-domestic rate, or business rates, collected by local councils are the means by which businesses and others who occupy non-domestic property make a contribution 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 councils according to the number of people living in the area. This 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 your local council and other local authorities in your area. You can now apply to pay your Business Rates by direct debit, by either:
- completing our Business Rates Direct Debit Online Application Form
- or by downloading our Business Rates Direct Debit pdf Application Form
Rateable Value
Apart from properties that are exempt from Business Rates, each non-domestic property has a rateable value, which is normally set by the valuation officers of the Valuation Office Agency (VOA), an Agency of the Inland Revenue. It draws up and maintains a full list of all rateable values, which are available on their website at www.voa.gov.uk . If you want to search for the rateable value of a particular property in Pendle, you can do so using the Valuation Office search facility .The rateable value of your property will be shown on the front of this bill. The rateable value 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 1st April 2000, this date was set as 1st April 1998.
The valuation officer has to maintain the list and may alter the value if he or she believes that the circumstances of the property have changed. 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 on the grounds for making an appeal, and on how to make one, can be found on the VOA website at www.voa.gov.uk or from your local valuation office:
The District Valuation Office
Red Rose House
104 Lancaster Road
PRESTON
Lancashire
PR1 1LX
Telephone: (01772) 405700
The effect of successful appeals against values shown in the rating list that came into force on 1st April 2000 will normally be backdated to the beginning of the financial year in which they are made, although there are exceptions to this. Further information about these arrangements may be obtained on the DTLR website at www.local.odpm.gov.uk/finance/busrats/guide/index.htm .
National Non-Domestic Rating Multiplier
The local council works out the Business Rates bill by multiplying the rateable value of the property by the multiplier or 'poundage' which the Government sets from 1st April each year for the whole of England. The Government normally changes the multiplier every year to move in line with inflation. By law, the multiplier cannot go up by more than the rate of inflation, except in the year of a revaluation when it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. The current multiplier will be shown on the front of this bill.
Transitional Arrangements
Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reduction 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 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 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 those changes. Further information about transitional arrangements may be obtained from Pendle Borough Council:
Treasury Services,
Borough of Pendle,
Elliott House,
9 Market Square,
Nelson,
Lancashire
BB9 0LX
Telephone: (01282) 661831
or on the ODPM website at www.local.odpm.gov.uk/finance/busrats/guide/index.htm
Any transitional arrangements will be shown on the front of your bill.
Unoccupied Property Rating
In general, there will be no Business Rates to pay for the first three months that a property is empty. After that, an empty property rate of 50% of the bill that would have been due on the occupied property will be payable. Industrial buildings, listed buildings and small properties with rateable values of less than £1,900, pay no empty property rates even after the first three months have expired.
Charitable relief, relief for registered Community Amateur Sports Clubs (CASCs) and Discretionary Relief
Charities are entitled to relief from rates on any non-domestic property that is wholly or mainly used for charitable purposes. Registered CASCs are also entitled to relief from rates on any non-domestic proerty that is wholly or mainly used for the purposes of that club, or that club and of other such registered clubs. In both cases, relief is given at 80 per cent of the bill. Local councils have discretion to give further relief on the remaining bill.
Authorities also have discretion to give relief on all or part of any rate bill for property occupied by certain non-profit making bodies. They can also consider giving rate relief in cases of hardship or where part of a property is beyond use for a certain period.
Rate Relief for new, Non-Agricultural Business on Previously Agricultural Land or Buildings
Rate relief is available for businesses with rateable values of up to £6,000, where the business is set up on previously agricultural land or buildings. Subject to certain conditions, the business will get a 50% reduction in the rates bill for up to five years. Local councils have discretion to give further relief on the remaining bill on such property.
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.uk ) 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.
Rate Relief for Businesses in Rural Areas
Certain types of business in rural villages, with a population below 3,000 may qualify for rate relief of 50%. Businesses that qualify for this relief are the sole general store and the sole post office in the village, provided it has a rateable value of up to £6,000; any food shop with a rateable value of up to £6,000; and the sole pub, the sole petrol station in the village provided it has a rateable value of up to £9,000. Local councils have discretion to give further relief on the remaining bill on such property.
The local council may decide to give up to 100% relief to any other business in such a rural village, with a rateable value of up to £12,000, if it is satisfied that the business is of benefit to the community and having regard to the interests of its council tax payers.
