Business rates - reductions

Summary

Business rates - reductionsBusiness owners may be eligible for reductions in their business rates. Examples of reductions are transitional relief, empty properties, charity relief, rural rate relief and hardship relief. The council provides advice on eligibility for rate reductions and will provide application forms and process applications for reductions.

How to apply for this service

  1. An application form is available either from the link below or by contacting the Revenues Section.

Downloads

Printable forms

Further information

Transitional Relief

Transitional phasing was first introduced following the introduction of the Non-Domestic Rating Scheme in order to restrict large increases or decreases in annual rates charges.

The basis for the calculation is that an annual charge, when compared with that for the previous financial year, is limited by how much it can increase or decrease.

New limits are set each re-valuation and details of each of the five year schemes are shown via the links above.

Small Business Rate Relief

From 1st April, 2005, occupiers of properties with a rateable value of less than £15,000 may be entitled to a reduction in their rates bill. Eligible properties with a rateable value of £5,000 will be entitled to 50% relief. This will decrease on a sliding scale of approximately 1% for every £100 rateable value below £10,000. Rateable values between £10,000 and £14,999 will not receive relief, but will have their bill calculated using the small business rating multiplier.

From 1st April 2010, occupiers of properties with a rateable value of less than £18,000 may be entitled to a reduction in their rates bill. Eligible properties with a rateable value of £6,000 will be entitled to 50% relief. This will decrease on a sliding scale of approximately 1% for every £120 rateable value below £12,000. Rateable values between £12,000 and £17,999 will not receive relief, but will have their bill calculated using the small business rating multiplier.

Mandatory Relief

If a property is wholly or mainly used for charitable purposes and occupied by an organisation established for charitable purposes, the occupier will be entitled to 80% mandatory rate relief. Types of organisation which are eligible for mandatory rate relief are:

  • An organisation registered with the Charity Commissioners (or one that can prove charitable status).
  • The Church Commissioners or any institute administered by them.
  • Any registered society - within the meaning of the Friendly Societies Act.
  • Boy Scout or Girl Guide Associations.
  • Voluntary Aided Schools within the meaning of the Education Act.
  • Charity Shops will be entitled to mandatory relief if they are wholly or mainly used for the sale of the goods given to the charity or if the proceeds of the sale of the goods are used for the purposes of the charity.

If your organisation fulfils one of the above criteria and you are not currently receiving mandatory relief please contact the Revenues Section. You will also need to send to us your last two most recent audited accounts and a copy of your articles of association.

You can also apply for discretionary relief in order to increase your relief up to a maximum of 100%.

Community Amateur Sports Clubs

Registered Community Amateur Sports Clubs are entitled to 80% mandatory relief.

Discretionary Relief

In order to apply for discretionary rate relief an organisation needs to be a non-profit making organisation and the property must be used for charitable, philanthropic or religious purposes, or be concerned with educational, social welfare, science, literature, the fine arts, or used wholly or mainly for recreation by a not for profit club or society. Organisations can apply for this relief under which the Council may remit part or all of their rates bill. On receipt of any application for discretionary rate relief the Council will consider:

Access
  • Membership should be open to all Sections of the Community, unless there are legitimate restrictions placed on membership.
  • The organisation should actively encourage membership from particular groups in the Community.
  • Facilities should be made available to people other than members.
Provision of Facilities
  • The organisation should provide training or education for its members. There should be schemes for particular groups to develop their skills.
  • Are the facilities provided/maintained by self help or are they grant aided?
  • Does the organisation run a bar?
Other Considerations
  • Is the organisation affiliated to a local or national organisation?
  • Is membership drawn from people mainly resident within Blaby District boundaries?

If your organisation is non-profit making and not currently receiving discretionary rate relief please contact the Revenues Section. You will need to send us your last two most recent audited accounts and a copy of your articles of association.

Hardship Relief

The Council may grant hardship relief to a ratepayer who would suffer hardship if they had to pay the whole bill. As 25% of any relief has to be paid from Council Tax revenue the Council must consider the interests of persons subject to Council Tax, when making such a decision.

Rural Rate Relief Scheme

This scheme is designed to assist with the provision of essential services in settlements of less than 3,000 population in rural areas. The scheme provides for a mandatory reduction of 50% to certain general stores and post offices. The billing authority is also able to top this relief up to 100%. There are also discretionary powers available, which allow for a reduction in rates to other qualifying businesses.

Village Shop Rate Relief Scheme

This scheme is designed to assist with the provision of essential services in settlements of less than 3,000 population in rural areas. The scheme provides for a mandatory reduction of 50% to certain general stores and post offices. The billing authority is also able to top this relief up to 100%. There are also discretionary powers available, which allow for a reduction in rates to other qualifying businesses.

Rural Settlement List

The following parishes are classed as rural settlements and have populations of less than 3,000.

  • Aston Flamville
  • Croft
  • Elmesthorpe
  • Huncote
  • Kilby
  • Leicester Forest West
  • Lubbesthorpe
  • Potters Marston
  • Sapcote
  • Sharnford
  • Thurlaston
  • Wigston Parva

Designated Area: Littlethorpe

Criteria for Mandatory Rural Rate Relief
  • The premises must be in a parish shown in the Council's rural settlement list
  • The rateable value of the premises must be no more than £8,500 (with effect from 1st April, 2010)
  • It must be a qualifying General Store or Post Office

A qualifying General Store is one which wholly or mainly sells both household goods and food and is the only one in the settlement.

A qualifying Post Office is one which is the only one in the settlement.

It is quite possible for both a Post Office and a General Store, in the same settlement, to qualify for mandatory relief. If your business fulfils the above criteria and you are not currently receiving mandatory village shop rate relief please contact the Revenues Section.

You can also apply for discretionary relief in order to increase your relief up to a maximum of 100%.

Criteria for Discretionary Rural Rate Relief
  • The premises must be in a parish shown in the Council's rural settlement list
  • The rateable value of the premises must be no more than £16,500 (with effect from 1st April, 2010)
  • The business must be of benefit to the local community
  • Relief now also applies to certain sole public houses and petrol filling stations where the rateable value is not more than £12,500 (with effect from 1st April, 2010)

If your business fulfils the above criteria and you are not currently receiving discretionary village shop rate relief please contact the Revenues Section.

Stud Farms

Premises that are attached to agricultural land or buildings that are used for the breeding or rearing of horses or ponies (stud farms) will receive relief on part of their rateable value. With effect from 1st April, 2010, they will receive relief on £4,200 rateable value.

Contact us

Officer / Team Revenues Section
Postal address Blaby District Council
Council Offices
Desford Road
Narborough
Leicester
LE19 2EP
E-mail address revenues@blaby.gov.uk
Telephone 0116 272 7530
Fax 0116 272 7790

If you need this information in other languages or formats (large print, Braille or audio), please let us know when you contact us.

This page was last updated on 12th March 2010

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