Explanatory Notes 25/26

Non-Domestic Rates

The non-Domestic Rates, or business rates, 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. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues. The money, together with revenue from council taxpayers, revenue support grant provided by the government and certain other sums, is used to pay for the services provided by local authorities in your area. Further information about the business rates system may be obtained here.

Please be aware that your business rates do not fund the provision or emptying of bins. You have a duty of care to make your own arrangements for the disposal of waste created by your business. You can find further information about business waste here.

Business Rates Instalments

Payment of business rates bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow ratepayers to request payments over 12-monthly instalments. If you wish to pay over 12-months please email businessrates@oadby-wigston.gov.uk or call 01162 288 8961.

National Non-Domestic Rating Multiplier

The council works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business 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. The Chancellor announced at Autumn Budget 2024 that in 2025/26 the government would freeze the small business multiplier at 49.9p while uprating the standard multiplier by the September 24 CPI rate to 55.5p.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier.

The current multipliers are shown on the front of your bill.

Rateable Value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenue and Customs. They compile and maintain a full list of all rateable values, available here. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1st April 2023.

The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.

Further information about the grounds on which challenges may be made and the process for doing so can be obtained by contacting the VOA, or by consulting the VOA website.

Revaluations

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation takes effect from 1 April 2023. Revaluations ensure that business rates bills are up-to-date and more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.

Proposals and Appeals

Information about the circumstances in which a change in the rateable value may be proposed and how such a proposal may be made is available from the Valuations Office Agency (VOA).

Business Rates Reliefs

Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e. a reduction in their business rates bill). There are a range of available reliefs. Further details are provided here.

Temporary Reliefs

Some of the permanent reliefs are set out below but temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available here. You should contact the Council for details on the latest availability of business rates reliefs and advice on whether you may qualify.

Small Business Rates Relief

You can get small business rate relief If you:

• only use one property, and its rateable value is less than £15,000
• use more than one property, and the rateable value of each of your other properties is £2,899 or less, with the rateable value of all these properties combined being £19,999 or less.

You can only get small business rate relief on one property.

The rateable values of the properties are added together and the relief is applied to the main property.

If you don’t qualify for relief but your property has a rateable value of less than £51,000 you will still pay less. Your bill will be automatically calculated using the small business rate multiplier (even if you have more than one property).

Amount of relief

• For properties with rateable value £12,000 or below, small business rate relief will be given at 100%.
• For properties with rateable value between £12,001 and £14,999, small business rate relief will be given on a sliding scale – from 100% at the bottom of the range to 0% at the top.
• For properties with rateable value £50,999 or less, the small business rate multiplier is used only (even if you have more than one property).

Businesses that take on an additional property which would normally have meant the loss of small business rate relief will be allowed to keep that relief for 12 months.

If you believe you should be getting small business rate relief but have not received it, please email businessrates@oadby-wigston.gov.uk or call 01162 288 8961.

If you continue to satisfy the conditions for relief which apply at the relevant time, you will automatically continue to receive relief in each new valuation period.

If you get small business rate relief, you need to tell us about the following changes in circumstances (we will pick up on all other changes):

• if the property becomes vacant
• if you take up occupation of an additional property
• an increase in the rateable value of a property you occupy outside of our council area.

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 of that and other charities), or for the purposes of the club (or of that and other clubs).

The Council has discretion to give further relief on the remaining bill. For further information please email businessrates@oadby-wigston.gov.uk or call 01162 288 8961.

Transitional Relief

At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.

Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. Further information about transitional arrangements may be obtained from the local authority or found here.

Local Discounts and Hardship Relief

Local authorities have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. For further information please email businessrates@oadby-wigston.gov.uk or call 01162 288 8961.

Retail, Hospitality and Leisure Relief

Properties that meet the eligibility for Retail, Hospitality and Leisure scheme will be occupied assessments which meet all of the following conditions for the chargeable day:

• they are wholly or mainly being used:

i) as shops, restaurants, cafes, drinking establishments, cinemas or live music venues.

ii) For assembly and leisure; or

iii) As hotels, guest & boarding premises or self-catering accommodation.

The 25/26 Retail, Hospitality and Leisure Business Rates Relief scheme will provide eligible, occupied, retail, hospitality, and leisure properties with a 40% relief, up to a cash cap limit of £110,000 per business.

Further information can be obtained from the Local Authority or by visiting gov.uk.

Unoccupied Property Rating

You don’t have to pay business rates in the first three months that a property is empty. After this time, most businesses must pay full business rates.

Some properties can get extended empty property relief:

• industrial premises (for example warehouses) are exempt for a further three months
• listed buildings – until they’re reoccupied
• buildings with a rateable value under £2,900 – until they’re reoccupied
• properties owned by charities – only if the property’s next use will be mostly for charitable purposes
• community amateur sports clubs buildings – only if the next use will be mostly as a sports club.

Full details on exemptions can be obtained from your local authority or from gov.uk.

Subsidy Control

The new UK subsidy control regime commenced from 4th January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments.

The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website.

Rating Advisers

Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors and the Institute of Revenues, Rating and Valuation are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.