Business Rates Annual Ratepayers Consultation 2023

The details on this page confirm the changes that are being made to the Business Rates for the financial year 2023/2024. The council has a duty to inform ratepayers of these changes before the beginning of the financial year. Ratepayers are invited to make any comments about these changes to Business.Rates@torridge.gov.uk 

The text can also be downloaded here  Business Rates Annual Ratepayers Consultation 2023 (PDF) [136KB]

Non Domestic Rates

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. The money, together with revenue from council taxpayers, locally generated income and grants from central government, is used to pay for the services provided by local authorities in your area.

National Non-Domestic Rating Multiplier

The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the national non-domestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to certain other mandatory relief(s) 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. Both multipliers for a financial year are based on the previous year's multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year, unless a lower multiplier is set by the Government.

Multipliers for 2023/2024

Small Business Multiplier = 49.9 pence                                                                  

Non -Domestic Multiplier = 51.2 pence

Revaluations

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation takes effect from 1 April 2023. Ratepayers have been notified of their new Rateable Value.

If you disagree with your new Valuation you can appeal using the Valuation Office's Check, Challenge and Appeal process. Further information about the grounds on which challenges may be made and the process for doing so can be found on the VOA website: www.gov.uk/guidance/how-to-check-your-rateable-value-is-correct

Summary of Reliefs

Transitional relief

Transitional relief limits how much your bill can change each year as a result of the business rates revaluation, which comes into effect on 1 April 2023. This means changes to your bill are phased in gradually, if you're eligible. Your council will adjust your bill automatically if you're eligible.

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.

If your bill is increasing from 1 April 2023

Small Business Rate Relief

Ratepayers who occupy only one property with a rateable value which does not exceed 12,000 will receive 100% reduction in their rates bill. For a property with a rateable value which is between 12,000 and 15,000 rateable value, the ratepayer will receive a percentage reduction in their rates bill.

Out of the 4,214 properties currently in the Torridge area, 2,637 claim Small Business Rate Relief, with 2,588 in receipt of 100% relief.

Supporting Small Business Relief

This scheme has been implemented to ensure that no small business faces a bill increase greater than £50 per month (£600 per annum) for the year 2023/24 as a result of losing eligibility for the Small Business Rate Relief or the Rural Rate Relief due to the Revaluation.

Rate relief for Businesses in Rural Areas

To receive 100% relief, the property must be the only general store, the only post office, or a food shop and have a Rateable Value of less that £8,500, or the only public house or the only petrol station and have a Rateable Value of less than £12,500. The property must be occupied.

Unoccupied Property Rating

Business Rates will not be payable for the first 3 months that a property is empty. This is extended to 6 months in the case of certain industrial properties.

Hardship Relief

The local authority has discretion to give hardship relief in specific circumstances. Application should be made to Business.Rates@torridge.gov.uk

Charity and Community Amateur Sports Club 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 that and other charities), of for the purposes of the club (or of that and other clubs)

Retail Relief

Retail Relief will award 75% relief to eligible, occupied, retail, hospitality and leisure properties up to a cash cap limit of £110,000 for the year 2023/24.