There are a number of rate reliefs businesses can apply for in
order to ease the impact of their business rates bill. You can find
out about the different kinds of relief by selecting the links
below.
If you have any questions or would like further information
about rate reliefs contact the Business Rates team on 01394
444546 or 444544 or email
businessrates@suffolkcoastal.gov.uk.
Further
information about rate reliefs (new window)
is also available on the Business Link website.
Printable application forms in PDF format are available at the
end of each section. Follow this link for
help with
downloading and opening PDF files.
Transitional relief
Rateable values are reassessed every five years -
the latest revaluation came into effect on 1 April 2010.
Following a revaluation, special transitional arrangements are
put in place to phase in significant increases or decreases in
rates bills. These set limits on the percentage by which your rates
bill can change each year. The transitional arrangements do not
cover changes in the rateable value because of changes to the
property.
Any transitional relief you are entitled to is automatically
shown on your rates bill, you do not have to apply for it.
Follow this link for more
information about transitional
arrangements.
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Charities and non-profit making bodies
Charities are automatically entitled to an 80% reduction in
their rates bills and the Council has the discretion to reduce
the bill further.
The Council also has the discretion to grant relief of
up to 100% to certain non-profit making bodies. The purposes
of the organisations applying for the relief must be philanthropic,
or concerned with education, social welfare, science, literature or
the fine arts.
Charity shops
Section 64(10) of the Local Government Finance Act 1988 provides
that a property is to be treated as being 'wholly or mainly' used
for charitable purposes at any time, if at any time, it is 'wholly
or mainly' used for the sale of goods donated to a charity and the
proceeds from the sale of the goods (after any deduction for
expenses) are used for the purpose of the charity.
This provision brings properties occupied as Charity shops
within the scope of mandatory rate relief so long as the necessary
conditions are met and extends to unoccupied properties where it
appears to the Council that the conditions will be met in
future.
The term 'wholly or mainly' has often been discussed, the
Government does not have a special authority on the interpretation
of legislation but apart from other matters to take into
consideration it is of the opinion that over 50% of the goods sold
should be donated goods.
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Registered community amateur sports clubs
From 1 April 2004 legislation was introduced which provides
registered community sports clubs with relief from rates. Mandatory
relief of 80% is granted and the Council can top this up with
discretionary relief to 100%.
The sports clubs have to be registered as Community Amateur
Sports Clubs (CASC) with the Inland
Revenue. Information regarding CASC registration (new
window) can be found on the HM Revenue & Customs
website.
Once the club is registered the Business Rate Team requires a
copy of the registration certificate issued which shows the
registration number.
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Rural rate relief
Post offices and general stores
In the past councils which serve rural areas adopted a policy
which aimed to support the presence of essential facilities,
particularly post offices and general stores, by awarding them rate
relief. The Government then introduced a new scheme under the Local
Government and Rating Act 1997, this came into force on 1 April
1998 and applies to businesses situated in designated rural
settlements.
The Council has to compile a list of those rural settlements
with a population of less than 3,000 as at 31 December, before the
beginning of the chargeable financial year. Follow this link to
see the
list of rural settlements as at 1 January 2010
(new window PDF 20KB).
Mandatory relief
Where the business property is found to be:
- within a settlement on the rural settlement list;
- having a rateable value of not more than £7,000 or less
from 1 April 2005 and not more than £8,500 from 1 April 2010;
- either (a) a qualifying general store or (b) a qualifying post
office;
- it will qualify for 50% mandatory relief.
A qualifying general store is one where:
- a trade or business consisting wholly or mainly of the sale by
retail of both food for human consumption (excluding confectionery)
and general household goods is carried out; and
- such a trade or business is not carried out in any other
premises in the settlement concerned.
A qualifying post office is one where:
- it is used for the purposes of the post office (within the
meaning of the Post Office Act 1953); and
- no other property or part of a property in the settlement is so
used.
Discretionary relief
As a matter of policy the Council will normally grant 50%
discretionary relief where the property in question is receiving
50% mandatory relief under this scheme.
The Council also helps those shops and post offices in rural
settlements which are above the £7,000 (£8,500 from 1 April
2010) rateable value limit for mandatory relief, but not more
than the £14,000 (with effect from 1 April 2005) and £16,000 (with
effect from 1 April 2010) limit for discretionary relief
which, but for their rateable value would have qualified for both
mandatory and discretionary relief.
In these cases, as a matter of policy, the Council will normally
grant 100% on the first £7,000 (£8,500 from 1 April 2010). The
Council may also grant full discretionary relief on other
businesses provided that certain criteria are met.
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Public houses and petrol filling stations
The village shop rate relief scheme was extended to include any
public house and petrol filling station that is the sole such
outlet in a rural settlement with a population of less than
3,000. From 1 April 2005 this applies to properties
with a rateable value of £10,500 or less (£12,500 or less from
1 April 2010).
The sole public house or petrol filling station with a rateable
value of £10,500 or less will receive 50% mandatory relief. The
Council has the discretion to top this relief up to a maximum of
100%.
Discretionary relief may be granted to businesses provided
that:
- the property is used for the purposes which are of benefit to
the local community, and
- it is reasonable for the Council to make such a decision having
regard to the persons liable to pay council tax set by
it.
If there is more than one public house or petrol filling
station, the Council can grant between 0% and 100% discretionary
relief.
If the rateable value of the property is over £10,500 (£12,500 from
1 April 2010), but not more than £14,000 (£16,500 from 1 April
2010), the Council can grant between 0% and 100% discretionary
relief.
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Food shops
From August 2001 the village shop rate relief scheme was further
extended to qualifying food shops. Qualifying food shops are those
stores with a rateable value of no more than £7,000
(£8,500 from 1 April 2010) that are located in a qualifying
rural settlement and sell food for human consumption.
Under the Act 'food for human consumption' excludes confectionery
and catering. This means shops that mainly sell confectionery,
food for human consumption on the premises or hot food for
consumption off the premises will not be eligible for the
relief.
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Hardship relief
Section 49 of the Local Government Finance Act 1988 gives local
authorities discretionary powers to reduce or remit rates for
businesses which are suffering extreme financial hardship, and,
where the closure of the business, brought about by hardship, would
have an effect on the local community.
The test of the hardship does not necessarily have to be
strictly confined to financial hardship, all relevant factors of a
business to meet its liability for rates would be taken into
account.
To apply for this relief please complete the application form
and return it to us with the requested documents.
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