Relief and reductions
There are a number of relief and reduction options available to businesses that pay business rates.
Charitable and Discretionary Relief
Charities are entitled to relief from rates on any non-domestic property that is wholly or mainly used for charitable purposes.
Relief is given to registered charities at 80 per cent of the full rate bill or of the transitional bill where the transitional arrangements apply. We also have discretion to remit all or part of the remaining 20 per cent of a charity's bill on such property.
We also have discretion to remit all or part of any rate bill in respect of property occupied by certain bodies not established or conducted for profit.
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You can download a Discretionary Rate Relief form![(PDF [64Kb] opens in new window)](/images/PDF.gif)
or a Mandatory Charity relief form.
You can also download Explanatory notes on relief for Charities and other 'not-for-profit' Organisations.
The forms are available in PDF format and you will need Adobe Reader to view it.
Hardship
We have discretionary powers to grant relief for businesses experiencing particular financial hardship. As this relief is part funded by Council Taxpayers, our ability to exercise this discretion is restricted. European Union competition rules generally prohibit government subsidies to businesses. Relief from taxes, including non-domestic rates, can constitute state aid.
The Government only reimburses the Council with 75% of the relief granted in these circumstances, so a quarter of the cost falls directly on Council Tax payers. For this reason, the Council in Liverpool will usually only grant this relief where it is evident that it is in the interests of the community that the ratepayer remains in business because either.
- He/she provides a unique, regularly-required amenity, or
- The lost of employment provided by a ratepayer would be severely damaging by the ratepayer would be severely damaging to the local community.
Before we will consider granting this relief a written request must be made and copies of two years audited accounts supplied. Please contact us for further details.
Changes to Empty Property Rates 1 April 2008
The Rating (Empty properties) Act has completed its passage through both Houses of Parliament and received Royal Assent on 19 July 2007. These changes will have effect from 1 April 2008.
These amendments include:
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Replacing the current permanent exemption for industrial properties with an exemption for the first six months only.
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Properties that have been empty for more than three months will no longer receive 50% relief from rates. In the case of industrial property, those that have been empty for more than six months - will no longer receive 100% exemption from rates.
Some permanent exemptions from empty property rate wil not be removed.
Below are explanatory notes giving further details of the changes and the Government's reason for their introduction.
As part of the Government's commitment to promoting the efficient use of land and property, it is taking action to modernise empty property relief for Non-Domestic rates. This is to provide a positive incentive to bring vacant shops, offices, factories and warehouses back into use.
A 100% business rate charge will apply to most properties that have been empty for three months or more, or six months or more in the case of industrial and warehouse property, with effect from April 2008.
These reforms will encourage owners to re-let, redevelop or sell unused property; improving access to premises and reducing rents for businesses, as well as reducing the need for development on Greenfield land.
What will this mean for my rates liability?
From 1 April 2008, most property that has been empty for more than three months, or in the case of industrial property, for more than six months - will no longer receive relief from rates.
Are there any exemptions to this charge?
After the initial three or six month rate free period expires, empty property will be liable for 100% of the basic occupied business rate unless:-
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It is held by a charity and appears likely to be next used for charitable purposes.
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It is held by a community amateur sports club and appears to be next used for the purpose of the club.
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The rateable value of the property is less than £2200
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The owner is prohibited by law from occupying the property.
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The owner is prohibited by action taken by the Crown, or any other local or public authority from occupying the premises.
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The property is included in the schedule of monuments compiled under s.1 to the Ancient Monuments and Archaeological Areas Act 1979.
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Is a listed building as compiled under Section 54 of the town and Country Planning Act 1971.
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The owner is entitled to possession only in his capacity as the personal representative of a deceased person.
If the following insolvency or debt administration situation exists
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A bankruptcy order within parts 8 to 11 of the Insolvency Act 1986.
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The owner is a trustee under a deed of arrangement to which the Deeds of Arrangement Act 1914 applies.
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The owner is a company subject to a winding up order made under the Insolvency Act 1986.
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The owner is entitled to possession of the property in his capacity as liquidator under s.112 or s.145 of the Insolvency Act 1986.
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Is an Administrator of a company in possession of an unoccupied property.
Can I have my property removed from the rating list?
If your property is in poor condition and cannot be economically repaired, the valuation officer may judge that it should be taken out of the rating list altogether.
The valuation officer is an officer of HM Revenue and Customs and can be contacted on telephone number 0151 802 1000 or by going to their website at http://www.voa.gov.uk
Can I appeal against the change in my rates liability?
The changes in rates liability arising from the reforms to empty property relief are not in themselves grounds for appeal. However, if you disagree with the rateable value that appears in the current rating list entry for your property, under the existing arrangements you may challenge it by making a `proposal' against it to your local valuation office.
What happens next?
Bills with increased charges will be sent out in March 2008 and will be payable under normal instalment arrangements.
Partly Occupied Properties
If a property is only partly occupied on a temporary basis, it is not always possible to amend the Rating List.
From 1 April 2008, as a consequence of the reforms to empty property relief, the empty part may, subject to the billing authority's approval, receive a complete exemption from rates for the first three months if it is empty (or, if it is an industrial property, for the first six months).
After the initial rate-free period expires, in most cases the apportionment will cease to have effect and the occupied business rate will be apply to the whole property. This will ensure that occupiers can benefit from any occupied business rate relief's to which they are eligible - such as small business rate relief - on the whole of the property, not just the occupied part.
Transitional Arrangements
Transitional arrangements will phase in the effect of significant changes in rateable value that arose from the 2005 revaluation of non-domestic property. The Government will limit the percentage by which bills may increase or decrease each year.
Where appropriate, these arrangements will operate until 31 March 2009 (the Government has decided that this scheme will only run for 4 out of the 5 years of the rating list).
Special rules apply when dealing with changes in rateable value as a result of splitting or merging properties during the life of the 2005 rating list.
Further information about transitional arrangements may be obtained from us or from the website of the Valuation Office at http://www.voa.gov.uk/business_rates/tranrelieffaq4.htm.
Contact us
Post
Liverpool City Council
Revenues Service
PO Box 2012
Liverpool
L69 2DX
In person
You can visit us at one of our one stop shops. It is best to make an appointment on our Appointments Hotline: 0151 233 3016. Please note that the last appointment will be half an hour before closing.
Telephone
0151 225 3409
Fax
0151 225 2145