A Guide To Non-Domestic Rates (Business Rates)
Non-Domestic Rates, or Business Rates, collected by local authorities is the way that those who occupy non-domestic property contribute towards the cost of local services.
Introduction to Non-Domestic Rates
Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local authorities according to the number of people living in the area. The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local authority and other local authorities in your area.
The present business rates system was introduced in 1990. At that time all business properties in the county were revalued. A revaluation takes place every five years. The last revaluation was in April 2005. The next one is due in April 2010.
For further details on business rates and the revaluation process visit the Government Web site mybusinessrates.gov.uk (external link).
The latest changes to Business Rates can be viewed on our explanatory note which can be accessed using the link on the right of the screen.
Who Pays Business Rates
Business rates are payable on most commercial properties, these include shops, warehouses, and factories. Some non-domestic properties do not have to pay rates, for example, farms, churches, parks and properties in enterprise zones.
Rates are usually paid by the occupier of the property. If the property is unoccupied then the owner or leaseholder will usually have to pay empty rates. Empty rates may be charged at a reduced rate (for more information see our page on Unoccupied Property Rating).
Calculation of the Rates Bill
The basic calculation of the bill is worked out as follows:
| Rateable Value x Multiplier = Gross rates charge for the year |
The rateable value of the property should broadly reflect the annual rent payable on the property. This Rateable Value is set by the Valuation Office, which is an agency of the Inland Revenue. This agency is responsible for maintaining the Valuation List which contains all the rating assessments for a district or borough council area. For the Mansfield area it can be inspected at the Civic Centre or at the Valuation Office in Nottingham or visit the Valuation Office Agency (external link) Web site.
The second part of the calculation is the multiplier. Before 1990 it was known as the rate in the pound. This figure is set at a national level by the Government every year and cannot increase by more than the level of inflation each year.
Changes in the Rateable Value
When a property is revalued there is a right of appeal. From the last revaluation in April 2005 if an appeal was successful the old rateable value was replaced by a new one. The result would mean the bill was recalculated. If the bill had transitional relief it could be that the change in rateable value made no difference to the bill until a later year.
If a rateable value changes after 1st April 2005, for example because there has been an alteration to the property, the bill will be amended from the date of the change. The limits on reductions and increases through transitional relief do not apply in these cases.
Legislation
In the collection of Business Rates, Mansfield District Council is governed by the Non Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989
Further Information
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