| Non-Domestic Rates |
| Introduction |
| Payments |
| Change of Owner |
| Rates Relief |
| Appeals |
| Water and Sewerage Charges |
Empty Property Relief – In general, there will be no non-domestic rates to pay for the first three months that a property is empty. After that, the rates bill will be calculated by taking the rateable value of the empty non-domestic property and multiplying this by one half of the current non-domestic poundage rate (this is referred to as the empty property rate). However some properties e.g. industrial and listed buildings, and properties with rateable values of less than £1,700, are exempt from the 50% empty property rate levy and do not have to pay non-domestic rates at all. Businesses that occupy a property, only trading on a seasonal basis at certain times of the year, would not qualify for relief.
Part of a property is not being used and is completely unoccupied for a short time – As short term empty property relief is granted at the discretion of the Council, each Council may have a different policy in place. South Ayrshire Council policy is to award this relief to former industrial premises only, where the value of the unoccupied part is greater than 5% of the total rateable value, and for a maximum period of 3 months per financial year.
Small Business Bonus Scheme – The rate relief scheme for small businesses, introduced from 1 April 2003, has been replaced from 1 April 2008 with a new scheme to award relief to businesses where the aggregate rateable value of their properties amounts to £15,000 or less.
Mandatory Relief for Registered Charities – Where an organisation is a registered charity and the property occupied by the organisation is used "wholly or mainly for charitable purposes", there may be an entitlement to 80% mandatory rates relief. It is not sufficient that a property is owned by a charity - the Council must determine whether a property is being used "wholly or mainly for charitable purposes".
Using the discretionary powers available to it, the Council’s policy is to top-up the 80% mandatory relief with a further 20% discretionary relief.
Discretionary Rates Relief - Non-profit Making Organisations – Councils have discretionary powers to grant up to 100% rate relief to non-profit making organisations, whether they are registered charities or not. To qualify, an organisation must either be charitable, religious, or concerned with education, social welfare, science, literature or the fine arts, or the property must be used by a non-profit-making organisation and used wholly or mainly for the purpose of recreation (sport). It should be noted that licensed clubs are not necessarily disqualified.
Sports Clubs Registered as Community Amateur Sports Clubs (CASCs) – Sports Clubs registered with Her Majesty’s Revenue and Customs Service (HMRC) as CASCs are entitled to 80% mandatory rates relief. Clubs wishing to apply for this relief should provide the Council with a copy of their registration certificate. Providing that this confirms the registration commencement date, no further application is required. In the event that a club thinks it may be entitled to relief greater than 80% under the discretionary relief scheme, the appropriate discretionary application form should be completed.
Rural Rates Relief – Certain types of businesses located within a rural settlement with a population below 3,000, and in an area designated as rural by Scottish Ministers, may be eligible for mandatory relief of rates. The types of business that may qualify for this relief are:
These premises are entitled to mandatory 50% rate relief, with councils having discretionary powers to top up this relief to 100%. The Council’s policy is to top-up the 50% mandatory relief with a further 25% discretionary relief, with the exception of petrol filling stations, which get an additional 50% discretionary relief.
Councils also have discretionary powers to grant up to 100% rate relief to properties within a rural settlement with a rateable value of £14,000 or less, used for purposes that are beneficial to the local community.
De-Rating Allowance/Discretionary Rate Relief for Stud Farms –The rateable value of lands and heritages which comprise or include buildings used for the breeding and/or rearing of horses and occupied with agricultural land or agricultural buildings should be ascertained by making a deduction from what would otherwise be the rateable value. The deduction is made from the value of the whole property by the local assessor to reflect how much of the property is used as a stud farm. The maximum amount of the deduction the assessor can make is determined by the Scottish Ministers by order and currently stands at £3,500.
Additionally, stud farms with a rateable value of £7,000 or less, newly established on or after 1 April 2003, will be able to qualify for discretionary rate relief. The Council’s policy is to award an additional 25% discretionary relief to complement the de-rating allowance.
Disabled Relief - To qualify for relief in terms of the Rating (Disabled Persons) Act 1978 the premises on which relief is claimed must be used wholly or mainly for one of the purposes specified below or for a purpose ancillary to the purposes specified:
This relief is usually awarded to nursing homes, although other types of facilities associated with the welfare or training of disabled persons may also qualify.
Revaluation-Transitional Arrangements - In order to minimise the effects of the revaluation of non-domestic subjects at 1st April 2005 the Scottish Executive implemented a Transitional Arrangement Scheme under which rateable value changes that significantly exceed the Scottish average, either up or down, were phased in over a period of time. Increases in bills were limited to 12.5% in real terms whereas decreases in bills were limited to 10%. These arrangements were phased over a 3-year period. From 1st April 2008 businesses now pay the true bill based on the rateable value and rate poundage (subject to any of the reliefs noted above). Since relief is granted automatically no application is required from ratepayers.
Exemption from Rating – Churches, church halls, and other places of worship are entered in the Valuation Roll but are fully exempt from the payment of rates.
