In the Autumn Statement on 22 November 2023 the Chancellor announced the introduction of a new business rates relief scheme for retail, hospitality and leisure properties in 2024/25.
The 2024/25 Retail, Hospitality and Leisure Business Rates Relief Scheme will provide eligible, occupied, retail, hospitality and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business.
Who is eligible for the relief?
Properties that will benefit from the relief will be occupied hereditaments that:
- fall under the £110,000 cash cap and Small Amounts of Financial Assistance limit and;
- are reasonably accessible to visiting members of the public and;
- are wholly or mainly being used:
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- as shops, restaurants, cafes, drinking establishments, cinemas or live music venues
- for assembly and leisure; or
- as hotels, guest & boarding premises or self-catering accommodation
Further information regarding the eligibility criteria can be found at GOV.UK
What is the cash cap and Small Amounts of Financial Assistance Allowance?
Cash cap
Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all their hereditaments in England.
Where a ratepayer has a qualifying connection with another ratepayer then those ratepayers should be considered as one ratepayer for the purposes of the cash cap. A ratepayer shall be treated as having a qualifying connection with another:
- where both ratepayers are companies, and
- one is a subsidiary of the other, or
- both are subsidiaries of the same company; or
- where only one ratepayer is a company, the other ratepayer (the “second ratepayer”) has such an interest in that company as would, if the second ratepayer were a company, result in its being the holding company of the other.
Small Amounts of Financial Assistance Allowance
Under subsidy control, no ratepayer can exceed £343,00 in total of Small Amounts of Financial Assistance over three years (including 2023/24).
Further guidance on the cash cap and financial assistance limit can be found at GOV.UK
How do I apply for this relief?
This relief has automatically been applied to 2024/25 business rates bills for those that may be eligible and were in receipt of the 2023/2024 Retail Hospitality and Leisure Relief (unless it was apparent that the above mentioned cap may be breached).
However, you are required to inform us, on a self-assessment basis, if you do not qualify or are in breach of the cash cap or Small Amounts of Financial Assistance limit so we can amend your account accordingly. You can also choose to opt out of this relief.
Please email revenuesandbenefits@rother.gov.uk quoting your account reference and address if you are in breach of the caps, are otherwise ineligible or to opt out.
If you would like to apply for this relief from 1 April 2024, then you can register and apply online here. You will need your property reference number which is the 13 digit number found on your business rates bill. The application is displayed in the Rates Discount Forms section.
Unoccupied and unfurnished
Properties that have been empty for less than three months, or in the case of some industrial properties, for less than six months will receive an exemption from Business Rates. After those initial three or six months rate-free periods, the responsible party will then be liable for 100% of the Business Rates. Please note that this exemption applies from the first day that the property becomes unoccupied, regardless of any change in liable party. Properties with a rateable value of under £2900 will remain exempt until they are no longer unoccupied.
If you would like to apply for this exemption then please complete the online form below.
Partially occupied
If a property is only partly occupied, the Council has the discretion to request that the Valuation Officer apportions the property’s Rateable Value between its occupied and unoccupied parts. Normal rates would then be charged on the occupied part, with the rules for empty property rating, as described above, applying to the unoccupied part. If you would like to apply for this then please contact us to arrange for a visiting officer to view your property.
Uninhabitable
If a property is not capable of beneficial occupation, for instance if it is in poor condition and cannot be economically repaired, and has not been intentionally damaged to avoid payment of rates, the Valuation Office may judge that it should be taken out of the rating list altogether. Please contact the Valuation Office for further information
Who is eligible for Small Business Rate Relief?
Small business rate relief can only be claimed for one property. The relief is only available to ratepayers who occupy either:
- one property with a rateable value of £15,000 or less or;
- one main property and other additional properties providing the additional properties each have a rateable value below £2,900 and the aggregate rateable value of all your properties is below £20,000.
In addition:
- if the rateable value is £12,000 or less you will get a 100% discount;
- if the rateable value is between £12,001 and £15,000, the discount is calculated on a sliding scale between 0 – 100%.
You will not be entitled to Small Business Rate Relief if:
- You are in receipt of Mandatory Charitable Relief.
- The property is unoccupied.
Taking on additional properties
In previous years, if you took on a second property with a rateable value of more than £2,899 you would no longer qualify for Small Business Rate Relief. From 14 February 2014 ratepayers continue to receive Small Business Rate Relief on the first property for 12 months, even when taking on a second one.
How do I apply for Small Business Rate Relief?
To apply for SBRR please complete and submit our online form:
Change of circumstances
Certain changes in circumstances need to be notified to the Business Rates team by the ratepayer. The changes which must be notified are:
- the ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief, and
- an increase in the rateable value of a property occupied by the ratepayer, and
- the hereditament becoming unoccupied.
Mandatory Relief
When a non-domestic property is occupied by a charity or a Community Amateur Sports Club it may qualify for 80% mandatory charitable relief.
Charities
With regard to occupied property, two requirements must be met:
- the ratepayer must be a charity or trustees for a charity; and
- the hereditament must be wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).
With regard to unoccupied property, two requirements must be met:
- the ratepayer must be a charity or trustees for a charity; and
- it must appear that when next in use the hereditament will be wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).
Exempt Charities
If you are an exempt charity we would require a letter from Inland Revenue saying you are entitled to an exemption from taxes under the provisions of section 505 of the Income and Corporation Taxes Act 1988. Please send this evidence in with your application.
Community Amateur Sports Clubs
Two requirements must be met:
- the rate payer must be registered as a Community Amateur Sports Club under the Corporation Tax Act 2010; and
- the hereditament must be wholly or mainly used for the purposes of the club itself, or for the purposes of the club and other Community Amateur Sports Clubs.
An application form can be downloaded below to complete and return.
Mandatory Rate Relief for Charities and Community Amateur Sports Clubs
Once entitlement is established, relief will continue from year to year without re-application but a check will be made from time to time to confirm the above conditions are still met.
Any change in entitlement to this relief must be notified to the Business Rates team within 28 days including if the hereditament becomes empty. New occupiers will need to make their own application.
Discretionary Relief
Further relief for Charities and Community Amateur Sports Clubs from all or part of the remaining 20% of their rate charge can be allowed.
An application form for this relief can be downloaded below.
Discretionary Rate Relief for Charities, Sports Clubs and Voluntary Organisations
Please complete and return both pages of the form. Applications MUST be accompanied by the audited accounts and forecasts specified in the form.
A fresh application is required each financial year for relief to continue.
Voluntary Organisations and Sports Clubs (not Community Amateur Sports Clubs)
Relief of up to 100% can be allowed to institutions or organisations, not established or conducted for profit and whose main objects are charitable, philanthropic, religious or concerned with education, social welfare, science, literature or the fine arts. An application for this relief may be downloaded. The completed application MUST be accompanied by the copies of the accounts and forecasts shown.
Relief of up to 100% can be allowed to the ratepayers of properties wholly or mainly used for purposes of recreation, and the occupier is a club, society or other organisation not established or conducted for profit. Application for this relief can be made on the form which may be downloaded. Applications MUST be accompanied by the copies of the accounts and forecasts shown.
Discretionary Rate Relief for Charities, Sports Clubs and Voluntary Organisations
Mandatory Relief
General Stores, Food Shops and Post Offices may be entitled to Mandatory Rural Rate Relief of 100%, provided they meet the following conditions:
- They must be within a “Rural Settlement” (defined in the Rural Settlement List compiled by the Council).
- The rateable value of the property must not exceed £8500.
- They must be used, in whole or part, as a General Store, Food Shop or Post Office.
- They must be the only General Store, Food Shop or Post Office in the settlement.
A General Store, Food Shop and a Post Office in the same settlement can qualify for relief.
A General Store is one in which the business consists wholly or mainly of the sale by retail of food for human consumption (excluding confectionery) and general household goods.
A Food Shop is one in which the business consists wholly or mainly of the sale by retail of food for human consumption. This excludes confectionary, supply of food for consumption on the premises and supply of hot food for consumption off those premises however Food Shops that only sell a small amount of heated food will be eligible.
An application form for this relief can be downloaded below.
Mandatory Rural Rate Relief for General Stores, Food Shops and Post Offices
Once entitlement is established, relief will continue from year to year without re-application but a check will be made from time to time to confirm the above conditions are still met. New proprietors will need to make their own application.
Any change in entitlement to this relief must be notified to the Business Rates team within 28 days including if the hereditament becomes empty.
Other Rural Businesses
Relief of up to 100% can be allowed to other village shops and rural businesses, of any sort, located in a “Rural Settlement” provided the property has a Rateable Value that does not exceed £16,500 at the beginning of the rating year concerned, and is used for the purposes which are beneficial to the local community. The interests of the Council Taxpayers must also be considered. You may download an application form for this relief below which must be accompanied by the copies of the accounts and forecasts shown.
Mandatory Relief
Public Houses and Petrol Filling Stations may be entitled to Mandatory Rural Rate Relief of 100%, provided they meet the following conditions:
- They must be located within a ‘Rural Settlement’ (defined in the Rural Settlement list compiled by the Council).
- They must be used as a Public House or a Petrol Filling Station.
- The rateable value of the property must not exceed £12,500.
- They must be the only Public House or Petrol Filling Station in the settlement.
An application form for this relief can be downloaded below.
Mandatory Rural Rate Relief for Public Houses and Petrol Filling Stations
Once entitlement is established, relief will continue from year to year without reapplication, but a check will be made from time to time to confirm the above conditions are still met. New proprietors will need to make their own application.
Any change in entitlement to this relief must be notified to the Business Rates team within 28 days including if the hereditament becomes empty.
Relief of up to 100% of the rates on ANY property in the District can be allowed on the grounds of hardship. This means not only the hardship caused to the ratepayers by payment of the rates, but also the loss of the local community by the possible closure of the business, depending on the proximity and availability of alternatives. Applications for this relief can be made on the below form which may be downloaded. Applications MUST be accompanied by the trading accounts and forecasts shown.
In all cases, an applicant is required to provide copies of trading accounts for the past two years, and a forecast for the current year. If these are not available for any reasons, other evidence of the financial position of the business MUST be provided. Applications will NOT be considered without this information. Relief is only allowed for a year at a time, and a fresh application is required each year for relief to be continued. Applicants are advised to provide as much information as possible with an application, to avoid delays in a decision being made.
Transitional relief limits how much your bill can change each year as a result of business rates revaluation.
This means changes to your bill are phased in gradually, if you’re eligible.
From the 2023 – 2024 tax year you’ll get transitional relief if your:
- property is in England
- rates go up by more than a certain amount
How much your bill can change by
How much your bill can change by from one year to the next depends on both:
- your property’s rateable value
- whether your bill is increasing or decreasing as a result of revaluation
You stop getting transitional relief when your bill reaches the full amount set by a revaluation.
The business rates year is from 1 April to 31 March the following year.
If your bill is increasing from 1 April 2023 as a result of the business rates revaluation your rates bill will be capped
We will adjust your bill automatically if you’re eligible.
Rateable value | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
---|---|---|---|
Up to £20,000 (£28,000 in London) | 5% | 10% plus inflation | 25% plus inflation |
£20,002 (£28,001 in Londoon) to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
Over £100,000 | 30% | 40% plus inflation | 55% plus inflation |
At the 2022 Autumn Statement on 17 November 2022, the Chancellor announced a relief to support small businesses. This aims to help businesses that face an increase in their rates bill due losing eligibility for some or all Small Business Rate Relief or Rural Rate Relief at the 2023 revaluation.
The relief will be granted automatically to those eligible, and will limit increases to £600 more than the previous year, every year while the scheme runs.
Supporting Small Business Eligibility
To qualify for this relief, your business must:
- not have received more than £315,000 in Subsidy Control over a rolling 3-year period (consisting of the current and prior two financial years)
- occupy the property
- have lost any part of their Small Business Rate Relief as a result of the 2023 Revaluation
Businesses not eligible
- A charity or a Community Amateur Sports Club occupy the property.
- If the property becomes unoccupied at any time
Refusal of relief
If we have applied the relief and you do not wish to receive it, you can choose to cancel your relief by emailing revenuesandbenefits@rother.gov.uk