Government Explanatory Notes
This section contains information provided by the Government.
- Non-Domestic Rates
- Rateable Value
- National Non-Domestic Rating Multiplier
- Business Rates Instalments
- Revaluation 2017 and Transitional Arrangements
- Unoccupied Property Rating
- Partly Occupied Property Relief
- Small Business Rate Relief
- Charity and Community Amateur Sports Club (CASC) Relief
- Relief for Local Newspapers
- Spring Budget 2017 Relief Scheme
- Local Discounts
- State Aid
- Hardship Relief
- Rating Advisers
- Information Supplied with Demand Notices
- Business Rate Supplements - Statutory Explanatory Note
- Contact us
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. Under the business rates retention arrangements introduced from 1st April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues. The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by local authorities in your area.
- Further information about the business rates system, including transitional and other reliefs is available on the GOV.UK website (external link)
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 (VOA), an agency of Her Majesty’s Revenue and Customs (HMRC). The VOA draw up and maintain a full list of all rateable values, which are available on the VOA website (external link). 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 2017, this date was set as 1 April 2015.
The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong. Full details on your rights of appeal are available from the Valuation Office Agency. Your billing authority can only backdate any business rates rebate to the date from which any change to the list is to have effect.
The Valuation Office Agency will continue to fulfil their legal obligations to alter rating assessments if new information comes to light indicating the valuation is inaccurate.
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 obtained from your local valuation office:
- Non-Domestic Rates London
The Valuation Office Agency
305 Chase Road
- Phone: 03000 501 501
- VOA website (external link)
The local authority works out the business rates bills 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 the small business rate relief. Except in the City of London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation. The current multipliers are shown on the front of your bill.
For this financial year the standard non-domestic rating multiplier has been set at 0.493 pence in the pound and the small business non-domestic multiplier has been set at 0.480 pence in the pound.
Payment of business rate bills is automatically set on a 10 monthly cycle. However, the Government has put in place regulations that allow businesses to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact us as soon as possible.
All rateable values are reassessed at a general revaluation. The most recent revaluation took effect from 1st April 2017. Revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of 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 2017 revaluation did not increase the amount of rates collected nationally, within this overall picture, the majority of ratepayers received a reduction or no change in their bill whereas some ratepayers saw increases.
A £3.6 billion transitional relief scheme limits changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there are also limits on reductions in bills. Under the transitional 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 based on a property at the time of the revaluation. If there are any changes to the property after 1st April 2017, 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 changes to the amount of small business rate relief) are not covered by the transitional arrangements.
The transitional arrangements are applied automatically and are shown on the front of your bill. Further information about transitional arrangements and other reliefs can be obtained from the Council or at GOV.UK (external link).
More information on the 2017 revaluation can be found at GOV.UK (external link).
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 unoccupied property rate. Full details on exemptions can be obtained from the 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.
A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the Council has discretion in certain cases to award relief in respect of the unoccupied part. Contact us for full details.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill.
Generally, this percentage reduction (relief) is only available to ratepayers who occupy either -
- (a) one property, or
- (b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.
The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.
The Government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that they will be allowed to keep that relief for a period of 12 months.
Where a ratepayer meets the eligibility criteria and has not received the relief they should contact the Council. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.
Certain changes in circumstances will need to be notified to the Council by a ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are -
- (a) the ratepayer taking up occupation of an additional property, and
- (b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club, and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).
The Council has discretion to give further relief on the remaining bill. Contact us for full details.
The Government is providing funding to local authorities so that they can provide a discount worth up to £1,500 a year for 2 years from 1st April 2017, to office space occupied by local newspapers. This is up to a maximum of one discount per local newspaper title and per hereditament, and up to state aid limits. The relief will be delivered through local authority discretionary discount powers (under section 47(3) of the Local Government Finance Act 1988).
Eligibility criteria for this relief is set out in a guidance note: “The case for a business rates relief for local newspapers”, which can be obtained at GOV.UK (external link).
Supporting Small Business
Ratepayers losing Small Business or Rural Rate Relief as a result of the 2017 revaluation will have their increases limited to the greater of either:
- (i) a cash value of £600 per year, or
- (ii) the matching cap on increases for small properties in the transitional relief scheme
This relief will run for 5 years to 31 March 2022 and ratepayers will receive the relief until this date or they reach what their bill would have been within the relief scheme, whichever is first.
This relief will be delivered through local authority discretionary discount powers (under section 47(3) of the Local Government Finance Act 1988).
The Government is providing £300 million of funding to local authorities over 4 years to 31st March 2021 to provide discounts to ratepayers in their area on a discretionary basis. Each authority has been allocated a share with which to design and implement a scheme to deliver targeted support to ratepayers. The £300m will cover the 4 years from 2017/18: £175m in 2017/18; £85m in 2018/19; £35m in 2019/20 and £5m in 2020/21.
Local authority allocations can be found at on GOV.UK (external link)
The relief will be delivered through local authority discretionary powers (under section 47(3) of the Local Government Finance Act 1988).
Support for Pubs
The Government is providing funding for local authorities to provide a £1,000 discount to pubs with a rateable value of below £100,000. This was to run for 2017/18 only; at Autumn Budget 2017, the Government extended the scheme for an additional year. Pubs with a rateable value of below £100,000 will also receive a £1,000 discount for 2018/19.
This relief will be delivered through local authority discretionary discount powers (under section 47(3) of the Local Government Finance Act 1988).
Local authorities have a general power to grant discretionary local discounts. Contact us for full details.
The award of such discounts is considered likely to amount to state aid. However it will be state aid compliant where it is provided in accordance with the De Minimis Regulations EC 1407/2013. The De Minimis Regulations allow an undertaking to receive up to EUR 200,000 'de minimis' aid over a rolling three year period. If you are receiving, or have received, any 'de minimis' aid granted during the current or two previous financial years (from any source), you should inform the local authority immediately with details of the aid received.
The Council has discretion to give hardship relief in specific circumstances. Contact us for full details.
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors RICS (external website) and the Institute of Revenues, Rating and Valuation IRRV (external website) 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.
Information relating to the relevant and previous financial years in regard to the gross expenditure of the Council is available within our annual Council Tax Guides. A hard copy is available on request by writing to the council, or by phoning 020 8489 1700.
The Business Rate Supplements Act 2009 enables levying authorities - county councils, unitary district councils and, in London, the Greater London Authority - to levy a supplement on the business rate to support additional projects aimed at economic development of the area.
Business Rate Supplements (BRS) are not applicable to properties with a rateable value of £70,000 or below, and authorities have discretion to increase that threshold. The total maximum BRS which may be levied by a levying authority is 2p per pound of rateable value. Levying authorities have the power to apply such reliefs to the BRS as they think appropriate and in such cases must include an explanation of the rules for the application of those reliefs in the final prospectus for the BRS.
The business rate supplement applicable in London is being levied by the Greater London Authority in relation to the Crossrail project and is detailed in the GLA Crossrail BRS (PDF 59KB).
Further information may be found in the Crossrail BRS final prospectus which is available at the GLA website (external link).
If you would like more information about Business Rates please contact us by:
- Tel: 020 8489 1700
- Email: firstname.lastname@example.org
Or by writing to:
- Haringey Council
Shared Service Centre
PO Box 55280
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