BUSINESS RATES ( NNDR) AND LIABILITY
ORDERS.
Business Rates and how they are calculated.
Business Rates are also known as the National Non Domestic Rate
(NNDR). This is a National Tax based on properties, or parts of
properties not in residential use.
The amount you pay in business rates will be determined by your
property’s rateable value. This is set by your local valuation
office. It is based on an assessment of what your property could
fetch in rent if it was placed onto the open market.
Who is liable to pay the Business Rates?
Where a business property, i.e. office, shop, factory, warehouse
etc., has a Rateable Value shown in the Valuation Officer's Rating
List, then a rates bill is normally issued to the ratepayer
who is in occupation of the property.
Actual occupation of the property is the
key to liability for the non-domestic rate. Ownership of a legal
title to the land or property is not necessary,
although the occupier must have beneficial and exclusive use of
the property.
What about if the property is empty?
You are exempt from payment of the Business Rates for the first
3 months, but charges for any subsequent period will depend on
the type of use of the property. As a general rule, warehouses,
factories, and manufacturing and/or repair workshops are exempt
from unoccupied property rate charges
but other properties such as shops, offices and those properties
where any part of the premises has been constructed or adapted
to include any retail provision of goods or services will be charged
at 50%.
For listed buildings and small properties
with a rateable value of less than £2,200 there are no
rates to pay even after the first three months.
Liability for these charges will be the responsibility of the
owner, defined as "the person or company entitled to possession" of the property in question.
How are business rates calculated?
In relation to shops, factories, warehouses and occupied Non-Domestic
premises, the following four points are used to determine
the Annual Rate Charge in 2005.
• The Rateable Value
• The Multiplier or Rate Poundage(s)
• Transitional adjustments, and Small Business Rate Relief
What is the rateable value?
The Rateable Value is currently reassessed every five
years by the Valuation Office Agency (an executive agency
of the Inland Revenue) and for most properties, the Rateable Value
represents an open market annual rent on a set date.
If you think that your rateable value has been set too
high you can make an appeal for this to be reassessed.
It is important that this be done as quickly as possible as there
are limits as to how far your appeal can be backdated.
NOTE:
We have now introduced a Help Line . For details see the Contact Us page.
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