Business Rates frequently asked questions

The rateable value is assessed by the Valuation Office Agency, which is an agency of HM Revenue and Customs. A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date. From 1 April 2023, the rateable value is based on the valuation date of 1 April 2021. 

Business Rates are a local tax that is paid by the occupiers of all non-domestic/business property, in the same way that council tax is a tax on domestic property. Under the business rates retention arrangements introduced from 1 April 2013, Councils keep a proportion of the business rates paid locally. This money, together with revenue from council tax payers, revenue support grant provided by the Government and other sums, is used to pay for the services provided by your local authority and other local authorities in your area such as the Police and Fire Service.

Holiday properties that are available to let on a commercial basis for short-term lets for more than 20 weeks of the year may be subject to payment of Business Rates rather than Council Tax

This type of property will have a Rateable Value applied to it instead of a Council Tax band. The amount of rates you will have to pay is calculated by multiplying the rateable value by the annual rate in the pound.

The rateable value is set by the Valuation Office Agency who apply a price per bed space based on the size, type and location of the property. The VOA will send you a questionnaire and ask you to provide evidence of lettings and how the property is marketed.

You may be eligible to apply for Small Business Rate Relief for your holiday let property, subject to certain conditions.

New eligibility rules came into force from 1 April 2023. For assessment purposes the VOA will look at letting information from the previous operating year. Owners of self-catering properties need to be aware that it is the availability and actual letting of their property during 2022-23 that will determine whether they are eligible for Business Rates rather than Council Tax.

From April 2023 your property must be:

• Available for letting commercially (with a view to making a profit) for short periods. These short period must total 140 days or more in the previous, and in the current year
• Actually let commercially for 70 days or more in the previous 12 months.

All new self-catering accommodation must initially be entered into the Council Tax list, for at least the first 140 days. Only when all the eligibility rules have been met can the property be deleted from the Council Tax list and entered into the Non-Domestic Rating (NDR) list.

The property must have been made available from 11 November 2022, or earlier, to meet the 'availability test' on 1 April 2023. All other rules must be met.

You can find out more on the Gov.UK website here Self-catering holiday accommodation

If you own a self-catering holiday unit, and you believe that your property has now met the criteria, you can find the form to complete at the following link  Application for Business Rates for self-catering holiday units

No. There is a separate charge for commercial refuse collection (trade waste) - For Torridge District Council there are various trade refuse collectors. Properties let for the purpose of self-catering holiday accommodation need to either dispose of their waste by private licensed waste carrier or organise a schedule 2 waste collection from Torridge District Council. Schedule 2 waste is only available for businesses that receive small business rate relief. Please contact operational services on 01237 428734 for more information.

Unoccupied non-domestic properties are liable for empty property rates after an exempt period of up to three months (six months for industrial properties). Rates are charged at 100% of the annual bill. Specific types of properties, for example, listed buildings or properties with rateable values below £2,900 are exempt from payment of empty property rates.

Yes. Please tell us the following: the date you moved out of the premises, the date the premises were sold or the lease expired, your forwarding address for correspondence and details of the new owner or leaseholder. By letting us know promptly we can arrange to refund you any overpayment you may be entitled to. You can complete the online form. Alternatively, email us at business.rates@torridge.gov.uk or call 01237 428700.

Yes. Business Rates are payable based on the current entry in the Rating List. If the rateable value of a property is reduced, any overpayment will be refunded together with statutory interest, if applicable. The Council cannot by law, change your rateable value without first being advised of the new one in writing by the Valuation Office Agency.

If there has been a large increase or decrease in the rateable value of your property following a revaluation, the increase or decrease in your bill will be phased in over a number of years. Your rate bill will increase or reduce by a fixed percentage, plus inflation, each year.