There are certain circumstances in which full rates are not payable:
- The first 3 months when a property is becomes empty
- The first 6 months when a property classed as industrial property becomes empty
- When a listed building is empty
- Where the occupier qualifies for Small Business Rate Relief
- When the occupier is a charity
- Where the occupier is a Community Amateur Sports Club.
- Where the occupier is a ‘not for profit’ organisation
- Certain properties which are located within a designated rural area
Empty properties
For the first three months that a property is empty, no rates are payable. After this time, ‘empty rates’ are charged, unless an exemption applies. From the 1st April 2008 empty rates are charged at the normal full rate. The relief previously given to empty property is no longer available.
For property classed as industrial, this includes factories, warehouses and workshops, no rates are payable for the first six months that a property is empty. After this time, empty rates are charged, unless an exemption applies. From the 1st April 2008 empty rates are charged at the normal full rate. The exemption previously given to empty industrial property is no longer available.
Properties are exempt from empty rates in the following circumstances
- those where the rateable value is less than £2200 in the 2005 list
- properties where occupation is prohibited by law, e.g. by Health and Safety legislation
- properties empty due to action taken by the Crown, or by any public or local authority, either to prevent occupation or to acquire the property, e.g. a compulsory purchase order has been made
- listed buildings or those subject to a preservation order
- properties where the person liable would be so only in his/her capacity as a personal representative of a deceased person, a liquidator or a trustee under a deed of arrangement, properties where the person entitled to possession is the subject of insolvency proceedings, the owner is a company in administration
- The owner is a charity or a Community Amateur Sports Club
Small Business Rate Relief
To qualify for this relief one of the following conditions must apply:
- The ratepayer occupies only one business property in England, and it’s rateable value is less than £10,000 or:
- The ratepayer occupies a main property with a rateable value of less than £10000 but also occupies other properties each with rateable values under £2200, and the total rateable value of all them does not exceed £14999. Relief can only be awarded on the property with the highest rateable value.
For properties with rateable values between £1 and £4999 relief of 50% is granted. For properties with rateable values between £5000 and £9999 relief is granted on a sliding scale reducing 1% for every £100 of rateable value above £5000.
Properties which qualify for Small Business Rates Relief also pay rates calculated using the Small Business Non Domestic Multiplier. The scheme is funded through a supplement on the rate bills of those businesses not eligible for the relief. However, properties with rateable values between £10000 and £14999 where the occupier otherwise meets the conditions above may have their liability calculated using the Small Business Non Domestic Multiplier.
If you believe that you may be eligible for either Small Business Rate Relief or that the Small Business Non Domestic Multiplier should apply, then you must submit an application form. This can be downloaded as a PDF form (on the right), and should be printed, completed and forwarded to Leeds City Council, Revenues and Benefits, P.O Box 60, 2 Great George Street, Leeds LS2 8JR.
Charities
Registered Charities which use premises for charitable purposes are generally entitled to 80% relief from rates. This includes shops, provided that the goods sold are wholly or mainly donated. Certain other organisations, such as Universities, are exempt from registration as a charity.
If the relevant conditions are met, this relief is mandatory, i.e. it must be granted, and the Government reimburses the Council in full.
Applications can be downloaded as a PDF form (on the right),which should be printed, completed and forwarded to Leeds City Council, Business Rates, P.O. Box 60, 2 Great George Street, Leeds LS2 8JR.
Community Amateur Sports Clubs (CASCs)
Sports clubs which are registered as Community Amateur Sports clubs with HM Revenue and Customs qualify for 80% relief. Further details on how to register as a CASC can be found on their website, www.inlandrevenue.gov.uk/casc/, or by writing to Inland Revenue Charities, Sports Club Unit, St John's House, Bootle, Merseyside L69 9BB.
Relief for ‘Not For Profit Organisations’
Councils may also grant discretionary relief to certain other non-profit-making bodies, e.g. sports clubs and community associations. The Government reimburses the Council for 75% of any of this relief granted.
Each application is considered on its own merits.
Rural Rate Relief
This was introduced from 1st April 1998 to allow relief for certain types of properties which lie within a designated rural settlement.
Properties which qualify are:
- Properties which operate as the sole general store or post office in a qualifying rural settlement, and have a rateable value of less than £7000
- Properties which operate as the sole public house or petrol filling station within a qualifying rural settlement and have a rateable value of £10500 or less.
The relief is 50% and is fully funded by central government.
The Council has the discretion to 'top up' this relief and the scheme also gives the council discretion to allow relief for other business premises in rural settlements if:
- the rateable value of the property is £14,000 or less,
- the property is used for purposes which are of benefit to the local community and
- it would be reasonable to allow relief having regard to the interests of those who pay Council Tax to the Council, since the relief is partly funded from Council Tax receipts.
Under the scheme the Council has drawn up a Rural Settlement List specifying qualifying settlements (those with a population of 3,000 or less) within areas designated as rural by the Government. This is available for inspection at our offices at 2 Great George Street, Leeds, LS2 8JR.
Hardship
Relief
Councils may grant relief to a ratepayer who would suffer hardship by paying the whole of the rates bill. The Government only reimburses the Council with 75% of the relief granted in these circumstances, so a quarter of the cost falls directly on Council Tax payers. For this reason, the Council in Leeds will usually only grant this relief where it is evident that it is in the interests of the community that the ratepayer remains in business because he/she:
- either provides a unique, regularly-required amenity, e.g. a village general store,
- or the loss of employment provided by the ratepayer would be severely damaging to the local community.
Before the Council will consider granting this relief, a written request must be made and copies of audited accounts supplied.
Properties in partial occupation
If a property is temporarily only partly occupied, it is not always possible or necessary to create two separate properties in the Rating List. For example, where the occupier of a warehouse reduces the amount of storage because of economic recession, or where a company phases its removal from one set of premises to another, it would be inappropriate to have the Rating List amended because the circumstances are not permanent.
Instead, the Council can ask the Valuation Office to determine the rateable values of the occupied and unoccupied parts. The rates payable on each part can then be worked out and relief is granted so that the ratepayer only pays the full rates for the occupied and benefits form any relief available on the unoccupied part. E.g. three months exemption for non industrial property and six month exemption for industrial property.