A new, enhanced relief scheme comes into force 1st October 2010 and continues until 30th September 2011 (when, it is assumed, relief levels will revert to that granted under the previous scheme)
The enhanced scheme gives additional rate relief to businesses occupying small premises as outlined below. The smallest premises (Rateable Value £6,000 or less) will attract 100% relief leaving the ratepayer with no charge for the 12 month period October 2010 to September 2011.
For further information please contact:
Business Rates Section, 3 Spilman Street, Carmarthen SA31 1LE
Tel.: 01267 228770
or E-mail : Rates@Carmarthenshire.gov.uk
1. General Rules & Exclusions:
1.1 The existing Small Business Relief exclusions will also apply to the enhanced scheme.
For example, the scheme will not apply to local authority premises or to premises occupied by ratepayers that are charities or non-profitmaking organisations that are entitled to apply for mandatory or discretionary “charitable” relief.
1.2 Apart from these specific exclusions, relief is not dependent upon the type of business e.g. it is not restricted to retail premises.
1.3 The business property must be wholly occupied to qualify for relief.
1.4 Where businesses would receive less relief under the enhanced scheme than under the outgoing SBR scheme, they will continue to get the previous, higher level of relief (see 2.3 below)
2. Basis of Enhanced Scheme
2.1 Premises with Rateable Value not exceeding £6,000 will be entitled to 100% relief for the duration of the enhanced scheme i.e. 1st October 2010 until 30th September 2011.
2.2 Above £6,000 Rateable Value, and up to the upper RV limit of £12,000 relief will reduce on a tapered basis, gradually reducing at a rate of approximately 1% for every £60 RV e.g. :-
• a property with RV £6,120 will attract 98% relief
• a property with RV £6,600 will attract 90% relief
2.3 The relief outlined in paragraphs 2.1 and 2.2 above will apply to all types of business, not only retail. (but see the exclusions mentioned in 1.1)
2.4 Under the original scheme Retail Premises with Rateable Value up to £11,000 received 25% relief. Under the new scheme, due to the taper premises between £10,500 and £11,000 RV would receive less relief.
The new scheme therefore includes protection for these cases and they will continue to receive 25% relief.
2.5 Post Offices will continue to receive relief under the existing scheme:
• Rateable Value £9,000 or less : 100% relief
• Rateable Value £9,001 to £12,000 : 50% relief
2.6 For Registered Child Care premises:
• Rateable Value £6,000 or less : 100% relief
• Rateable Value £9,000 - £12,000 will continue to get 50% relief
• Rateable Value £6,001 - £8,999 will be subject to the tapered relief
2.7 Credit Unions will also be subject to the enhanced tapered relief scheme.
3. Arrangements
3.1 Businesses entitled to relief will be identified from the Council’s rating records. There will be no need for applications.
3.2 Where relief granted results in accounts being in credit, these credits will be carried forward to 2011/12. However ratepayers will be entitled to request a refund.
3.3 Unfortunately ratepayers previously paying by Direct Debit but having nothing to pay between October 2010 and September 2011 may have to complete a fresh DD instruction due to banking rules over “dormant” instructions.
3.4 The 2011-12 bills that will be issued in March / April 2011 will show the full year effect of the enhanced relief [e.g. full exemption for premises below £6,000 RV.] As the enhanced relief scheme stops in September fresh bills will be issued at that time showing ratepayers their revised liability.