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Reliefs and Exemptions - Business Rates

To apply for any Reliefs or Exemptions please contact us for a form.

Exemptions

Exempt properties are not shown in the Local Rating List and therefore have no liability for Business Rates. Such exemptions include:

  • agricultural land and buildings
  • fish farms
  • places of religious worship
  • open public places such as parks
  • property used for the disabled
  • property in enterprise zones etc

Some properties may be exempt whilst they are empty.

If your property is used under such circumstances, for further information you should contact the Valuation Officer Agency.

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Empty rate exemptions

Business Rates are payable on most empty properties and usually the person who is entitled to possession will be liable for the Business Rates.

  • shops and offices are exempt from Business Rates for the first three months after the property became empty. After this the full charge becomes payable
  • industrial properties are exempt from Business Rates for the first six months after the property became empty. After this the full charge becomes payable

Some properties are exempt from Business Rates empty property charges.

  • properties with a rateable value under £2,600 (check your rateable value)
  • empty properties of companies in administration or liquidation
  • listed buildings
  • properties where occupation is prohibited by law
  • properties where the owner is entitled to possession only in his capacity as the personal representative of a deceased person

The Government has announced a new measure for newly-completed empty properties that are brought into the rating list from 1st October 2013 to 30th September 2016 whereby the empty rate exemption period will be extended to a maximum of 18 months.

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Transitional relief

Following revaluation properties may face an increase or decrease in their bill, so to phase in significant increases or decreases and reduce the impact of these changes the government introduced Transitional Relief. Transitional arrangements following the revaluation on 1st April 2010 are phased over a maximum of seven years.

The transitional arrangements mean that rate bills for businesses operating from small properties won't rise as steeply as they would do otherwise (small properties are defined as those properties with rateable values below £18,000).

The set limits on the percentage by which your rates bill can INCREASE each year, before inflation
YearSmall propertyLarge property
2010/11 5% 12.5%
2011/12 7.5% 17.5%
2012/13 10% 20%
2013/14 15% 25%
2014/15 15% 25%
2015/16 15% 25%
2016/17 15% 25%
The set limits on the percentage by which your rates bill can DECREASE each year, before inflation
YearSmall propertyLarge property
2010/11 20% 4.6%
2011/12 30% 6.7%
2012/13 35% 7%
2013/14 55% 13%
2014/15 55% 13%
2015/16 Nil Nil
2016/17 Nil Nil

The transitional arrangements do not cover increases from inflation or changes in the rateable value because of changes to the property, e.g. an extension.

From 2015/16 properties with a rateable value above £50,000 will not be entitled to transitional relief.

We will automatically include transitional relief when we calculate your liability and details will be shown on your bill.

Please see the gov.uk website for further information on Transitional Arrangements.

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Small Business Rate Relief from April 2017

Ratepayers who are not entitled to another mandatory relief and who occupy a single property with a rateable value of up to £14,999 are eligible for Small Business Rate Relief.

You may be eligible for Small Business Rate Relief depending on your property's 2017 Rateable Value.

Relief applies where either:
• You are only responsible for Business Rates in respect of one property; or
• You are responsible for two or more properties; and
• the Rateable Value of the second and each subsequent property is less than £2,900; and
• the Rateable Values of all the properties totals less than £20,000

Properties with a Rateable Value of £12,000 and below will qualify for 100% relief and there’s a sliding scale reduction for properties with a Rateable Value of £12,001 to £14,999. No relief can be awarded where the Rateable Value is £15,000 or more.

Where a ratepayer has two or more properties, relief can only be awarded in respect of one property.

Relief cannot be awarded in respect of unoccupied properties or those where Mandatory Charitable Relief has been awarded.

To apply for relief please complete and return an application form:

If relief is awarded and you are only responsible for one property but you subsequently become responsible for Business Rates for a second property, please contact the Business Rates section immediately to confirm whether you will remain entitled to relief.

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Charities, Non-Profit Making Organisations and Community Amateur Sports Clubs (CASC)

Charities

Where the ratepayer of a property is a registered charity and the property is used for charitable purposes, by that or another charity, then the ratepayer will be entitled to 80% mandatory rate relief, providing the property is being wholly or mainly used for charitable purposes.

The Councils also have the discretion to award a further 20% relief. Applications for discretionary relief will be considered in accordance with the guidelines in the Councils' Discretionary Rate Relief Policy.

Non-Profit Making Organisations

Discretionary relief of up to 100% of the rate bill can be awarded to non-profit making organisations whose main objectives are charitable, religious, or concerned with education, social welfare, science, literature or fine arts or sporting organisations.

Applications for relief will be considered in accordance with the guidelines in the Council's Discretionary Rate Relief Policy.

Community Amateur Sports Clubs (CASC)

Community Amateur Sports Clubs are treated in the same way as registered charities and they will therefore be entitled to 80% mandatory relief and can be considered for a further 20% discretionary relief. Applications for relief will be considered in accordance with the guidelines in the Council's Discretionary Rate Relief Policy.

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Rural rate relief

Certain types of properties in a rural settlement with a population below 3,000 may be entitled to relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500 or the only public house or the only petrol station and have a rateable value of less than £12,500. The property has to be occupied. An eligible ratepayer is entitled to relief at 50% of the full charge whilst the local authority also has discretion to give further relief on the remaining bill.

In addition, the local authority has the discretion to remit all or part of the rate bill on other occupied properties in a rural settlement where the rateable value is less that £16,500 and the authority is satisfied that the property is used for a purpose that benefits the community.

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Rate Relief for pubs

In the Spring Budget on 8th March 2017 the Government announced that, as the result of the Business Rates revaluation that became effective from 1st April 2017, it would provide relief of up to £1,000 during 2017/18 for pubs that have a Rateable Value below £100,000.

Further guidance was issued by the Department for Communities and Local Government on 20th June 2017 stating that eligible pubs should:

  • be open to the general public
  • allow free entry other than when occasional entertainment is provided
  • allow drinking without requiring food to be consumed
  • permit drinks to be purchased at a bar

The guidance also stated that relief should not be awarded to restaurants, cafes, nightclubs, hotels, snack bars, guesthouses, boarding houses, sporting venues, music venues, festival sites, theatres, museums, exhibition halls, cinemas, concert halls or casinos.

Awards of this relief must comply with the EU law on State Aid such that the award of relief will not exceed the €200,000 that a business can receive under the De Minimis Regulations EC 1407/2013. Further information about State Aid is available on the gov.uk website.

Other De Minimis State Aid includes relief that has been granted in respect of other pubs that the ratepayer is liable to pay Business Rates for. This may be particularly relevant to properties that are part of a large retail chain where the cumulative total of the relief received could exceed €200,000.

The €200,000 threshold should be calculated in respect of a rolling three-year period (i.e. 2015/16, 2016/17 and 2017/18).

During June and July 2017 we will be attempting to identify Business Rates accounts that should be awarded this relief and will issue revised bills for those ratepayers who we believe should qualify for assistance.

An application to apply for this relief is available below:

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Part occupied property

Section 44a of the Local Government Finance Act 1988 gives the Council discretion to award relief if part of a property, e.g. a room or floor that is included in the rating assessment, is temporarily not being used.

Applications must be made in writing to the Business Rate Team and cannot be made retrospectively. Please include a detailed plan of the occupied/unoccupied areas with your application. Please tell us why part of the property is not being used, the date that it became unoccupied and the date that you expect it to be re-used.

When we have received your application we will contact you and arrange for our Revenues Inspector to visit the property to confirm the unoccupied areas.

If relief is approved, we will then contact the VOA to value the unoccupied part. This will then allow the Councils to treat this area as a separate unoccupied property for the purposes of awarding empty property relief.

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Hardship relief

The Councils may, in exceptional circumstances, grant hardship relief to ratepayers whose circumstances have become so severe that not granting relief may cause unnecessary hardship - either financially or otherwise.
The Councils can only grant hardship relief if it is satisfied that:

  • The ratepayer would sustain hardship if the Authority did not do so; and
  • It would be reasonable to do so, having regard to the interests of persons subject to its Council Tax.

Please note that you will need to include financial information including accounts and bank statements.

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