Harrogate Borough Council
Menu
Business Rates
The Non-Domestic Rate
National Non-Domestic Rates (NNDR), or Business rates as they
are sometimes known, are the way local businesses contribute to the
cost of services which Harrogate Borough Council provide.
The number of Non-Domestic Ratepayers in the Borough
fluctuates but as at 28/02/08 it was 6336. The Council
expects to collect about £48.1m in Non-Domestic Rates in
2008/09.
The Rates are set by the government and collected by the
council on their behalf. This income is then paid into a central
pool administered by the government and redistributed between all
authorities in the form of a grant. How much the Council receives
depends upon how many people live in the Borough.
The Non-Domestic or Business Rates are calculated by
multiplying a property's Rateable Value
by the non-domestic multiplier.
The "multiplier" is the rate in the pound that is set annually
by the Government. For 2008/09 this is 46.2p (45.8p for small
businesses). Other than in a revaluation year, the multiplier may
not increase by more than the rate of increase in the Retail Price
Index.
Who pays Business Rates?
In general, Business Rates are payable on most commercial
property, such as shops, offices, restaurants, public houses,
warehouses and factories.
Self-catering accommodation, such as a holiday home, is also
liable to pay Business Rates, if you intend to make it available
for commercial letting to short stay guests for 140 days or more in
a year. Businesses run from domestic dwellings may also
be liable to pay Business Rates (in addition to Council Tax).
There are certain types of businesses that are not rateable,
for instance sewers, farmland and buildings, churches, public
parks, and moveable moorings.
Changes to empty and partly occupied property rates from 1 April 2008
This text is substantially reproduced from
information supplied by Central Government to explain their changes
in legislation.
The Government has reformed empty property relief
in order to
provide a strong incentive to bring empty
property back into use.
This will help to increase the supply of premises
to let, reducing
business rents and improving the
competitiveness of the UK.
It will also encourage re-development of
brownfield sites reducing
the need for new development on greenfield
land.
Questions you may have:-
What will this mean for my rates liability?
As of 1 April 2008, most property
that has been empty for more than three months, or in the case of
industrial property, for more than six months, will no longer
receive relief from rates. After the initial three or six month
rate-free period expires, empty property will be liable for 100% of
the basic occupied business rate, unless it:
- qualifies for the new zero rate provided by the Rating (Empty Properties) Act 2007. From 1 April 2008, the rates liability of empty property that is held by a charity and appears likely to be next used for charitable purposes, or that is held by a community amateur sports club and appears likely to be next used for the purposes of the club, will be reduced from 10% of the basic occupied rate to zero.
- qualifies for an exemption from rates under the NNDR (Unoccupied Property) Regulations. While the current permanent exemption for industrial property will be reduced to six months, the Government proposes to preserve the majority of the other existing exemptions unchanged. However, the Government is consulting on possible reforms to the exemption for empty property that is listed or subject to a building preservation notice. It is also consulting on the possibility of extending the exemption from rates for empty property held by companies in liquidation to that held by companies in administration.
Can I get my property taken out of the rating list
altogether?
If your property is not capable of beneficial occupation - for
instance, if it is in poor condition and cannot be economically
repaired - your valuation officer may judge that it should be taken
out of the rating list altogether.
However, please be aware that if the state of your property is
damaged for the purposes of avoiding rates, your valuation officer
will be required to disregard the change in the property's state
when assessing its rateable value - this is under new
anti-avoidance legislation introduced by the Government . So, for
instance, if the roof is removed from an empty property for the
purpose of avoiding rates, it may be valued as if the roof had not
been removed.
How will my rates liability be affected if my property is
only partly occupied?
If a property is only partly occupied, the billing authority
has discretion to request that the valuation officer apportions the
property's rateable value between its occupied and unoccupied
parts.
At present, broadly speaking, the empty property rate applies
to the empty part of an apportioned building and the occupied
business rate applies to the occupied part. From 1 April 2008, as a
consequence of the reforms to empty property relief, the empty part
will receive a complete exemption from rates for the first 3 months
it is empty (or, if it is an industrial property, for the first 6
months).
After the initial rate-free period expires, in most cases the
apportionment will cease to have effect and the occupied business
rate will apply to the whole property. This will ensure that
occupiers can benefit from any occupied business rate reliefs to
which they are eligible - such as small business rate relief - on
the whole of the property, not just the occupied part. However, if
the property would qualify for the new zero rate, or for an
exemption from rates when empty, the apportionment will continue to
have effect and the owner will not be liable for rates on the empty
part.
Can I appeal against the change in my rates
liability?
The changes in rates liability arising from the reforms to
empty property relief are not in themselves grounds for appeal.
However, if you disagree with the rateable value that appears in
the current rating list entry for your property, under the existing
arrangements you may challenge it by making a 'proposal' against it
to your local valuation office. Your rights of appeal are not
affected by the reforms to empty property relief and you can
contact your local valuation office for further information about
the arrangements for making proposals.
Where can I obtain more information?
Copies of the Government's Business Rates Information Letters,
which contain information about the change can be located at
http://www.local.communities.gov.uk/finance/busrats1.htm
Website
www.communities.gov.uk
Email
contactus@communities.gov.uk
Tel
020 7944 4400
Website
www.voa.gov.uk
Tel
01423 830800
Harrogate Borough Council
If you wish to discuss payment of your account please contact
the Revenues Division at:
Scottsdale House, Springfield Avenue,
Harrogate HG1 2SD
Opening hours 8.30am 4.30pm Monday to Friday
Tel
01423 556677 8.30am 5.15pm (4.45pm
Friday)
Fax
01423 556410
Customer Charter
Click on the link below to access the charter:
page last updated 28/02/08