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Stockton-on-Tees Borough Council

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Business rates - reliefs

business rates

There are a number of reliefs available to non-domestic rate payers which can be applied for and awarded depending on various qualifying conditions.

 

Small Businesses

From 1st April 2017 eligible business properties with a rateable value of less than £12,000 will get 100% rate relief.

There will be an exact sliding taper for those with a rateable value between £12,000 and £15,000.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 and are not entitled to other mandatory relief will have their rates bill calculated using the small business non-domestic rating multiplier (e.g. from 01 April 2017 to 31 March 2018 this is 46.6p instead of 48.4p).

Who will qualify?

Small business rate relief is only available to ratepayers who occupy either:

  • One property or
  • One main property and other additional properties providing those additional properties each have a rateable value of less than £2,900 and the total value of all properties is below £20,000.

A qualifying property must be within the thresholds outlined above and must meet the criteria on every chargeable day for which the relief is claimed.

If a ratepayer occupies a second property which affects their entitlement to Small Business Rates Relief they may retain the relief for 12 months on their existing property.

The relief is not available for unoccupied properties.

How to apply

An application for Small Business Rates Relief is not required. Where the ratepayer meets the eligibility criteria and has not received the relief, they can request relief by contacting 01642 397108 or completing the online application:

Apply online for Small Business Rate Relief

 

Provided that the ratepayer continues to satisfy the condition for relief, they will automatically continue to receive relief in each new valuation period.

Where the ratepayer is an individual as opposed to a company, contact must be made by the ratepayer or business partner. Where the ratepayer is a company, contact must be made by an officer of that company e.g. a director, company secretary or trustee.

 

Pub Relief Scheme

At Spring Budget 2017, the Chancellor announced a £1,000 business rate discount for public houses with a rateable value of up to £100,000. The relief is for one year from 1 April 2017 and will end on the 31 March 2018.

Who will qualify?

To be eligible for this relief the pubs should:

  • be open to the general public
  • allow free entry other than when occasional entertainment is provided
  • allow drinking without requiring food to be consumed
  • permit drinks to be purchased at a bar.

For the purpose of this relief pubs are not any of the following:

Restaurants, Cafes, Nightclubs, Hotels, Snack Bars, Guesthouses, Boarding Houses, Sporting Venues, Music Venues, Festival Sites, Theatres, Museums, Exhibition Halls, Cinemas, Concert halls and Casinos.

There is no relief available under this scheme for properties with a rateable value of £100,000 or more. Where pubs are part of a chain, relief will be available for each eligible property in the chain, subject to meeting State Aid requirements.

How to apply

An application for Pub Relief is not required. The relief has been awarded to qualifying establishments and account holders notified. If based on the above qualifying criteria you believe that you are eligible for this relief and have not received it please contact customer services on 01642 397108 or email business.rates@stockton.gov.uk

 

Charitable and discretionary relief 

Non-profit making organisations are entitled to rate relief on any non-domestic property that is wholly or mainly used for charitable purposes. Relief is given at 80% off the bill. Local councils also have the discretion to give further relief up to 100%.

The local authority can also consider giving hardship rate relief in very special circumstances, an application form and guidance notes are available.

Discretionary rate relief notes

Mandatory and discretionary rate relief application

Business rates notes to accompany Hardship application form

Section 49 Hardship Relief application form

 

Enterprise Zone Business Rate Discount

Businesses located within the Tees Valley Enterprise Zone may be entitled to business rates discount of up to £66,000 (approximately £51,000 depending on exchange rates) for up to 5 years. The discount is available on the following Enterprise Zone sites in Stockton:

  • Belasis Business Park, Billingham
  • Northshore, Stockton 

Applications for Enterprise Zone Business Rate Discount are assessed against our criteria.  For further information contact the Business Engagement Team on 01642 528384 or email: business.enquiries@stockton.gov.uk

Visit Tees Valley Combined Authority for further information about the Tees Valley Enterprise Zone.


Stockton Town Centre Local Business Rates Discount Scheme

Business Rate discounts of 50% for up to 2 years are available to businesses that occupy and trade from a vacant unit within a defined area of Stockton Town Centre.

You will be required to submit an application form and applications will be assessed against our criteria.

For more information contact the Business Engagement team.

Telephone: 01642 528384
Email: business.enquiries@stockton.gov.uk

 

Rate Relief for Sporting Organisations 

Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the Charity or Club and is wholly or mainly used for charitable purposes or as a Registered Community Amateur Sports Club. The local authority has discretion to give further relief on the remaining bill.

Full details can be obtained from our Taxation Division (Tel. 01642 397108)

Download the National Non-Domestic Rate Relief Application for Sporting Organisations.

 

Rural Rate Relief

Certain types of business in rural villages, with a population below 3000 may qualify for rate relief of 50%. Businesses that qualify for this relief are:

  • The sole general store and sole post office in the village, provided it has a rateable value of up to £8,500.
  • Any food shop with a rateable value of up to £8,500; and
  • The sole pub and the sole petrol station in the village provided it has a rateable value of up to £12,500.

Local councils have discretion to give further relief on the remaining bill on such property.

The local council may decide to give up to 100% relief to any other business in such a rural village, with a rateable value of up to £16,500, if it is satisfied that the business is of benefit to the community and having regard to the interests of its council tax payers.

For further information please see the Rural Rate Relief Scheme document, alternatively see the contact details at the bottom of the page.

 

Unoccupied Property Rating 

Business rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period rates are payable in full unless the unoccupied property rate has been reduced by the Government by order.

In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the unoccupied property rate. Full details on exemptions can be obtained from Stockton Council's Revenues and Benefits Division*. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of your bill.

 

Partly Occupied Property Relief

 

A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the local authority has discretion in certain cases to award relief in respect of the unoccupied part. Full details can be obtained from Stockton Council's Taxation Division.

For more information please see the contact details at the bottom of the page.

 

Village Shop Rate Relief Scheme

In accordance with the Local Government and Rating Act 1997 Stockton on Tees Borough Council has compiled a rural settlement list.

The list will be used to assess entitlement to the Village Shop Rate Relief Scheme.

The list and associated documentation are held at Revenues & Benefits Service, Bayheath House, Prince Regent Street, Stockton-on-Tees TS18 1DF and are available for inspection during normal office hours.

If anyone wishes to view or make comment upon the list they can do so at the address shown.

For application forms and further details please contact the Revenues & Benefits Service on 01642 397108 or  email business.rates@stockton.gov.uk.

 

Hardship Relief

The local authority has discretion to give relief in special circumstances. Full details can be obtained from Stockton Council's Revenues and Benefits Division*.

 

Transitional Relief

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 are put in place by the Government to phase in significant increases or decreases in rates bills. The transitional amount forms part of the chargeable calculation and is shown on your rates bill.

    Property Size 2017/18 2018/2019 2019/2020 2020/2021 2021/2022
  Upward Phasing (RV Increase)

 Small   5.0%   7.5%   10.0%   15.0%   15.0% 
   Medium  12.5%   17.5%   20.0%   25.0%   25.0%
   Large  42.0%   32.0%   49.0%   16.0%   6.0% 
  Downward Phasing (RV Decrease)

 Small  20.0%   30.0%   35.0%   55.0%   55.0% 
   Medium  10.0%   15.0%    20.0%   25.0%   25.0% 
   Large  4.1%   4.6%   5.9%   5.8%   4.8% 
  NOTE: These are year on year caps on increases. For instance, the maximum increase for small properties over 5 years would be 64%. But a small property with an increase of 7% would reach their full bill in year 2.

Rateable Values;

Small Property - Up to £20,000

Medium Property - £20,000 to £100,000

Large Property - Over £100,000