Business Rates

 

The National Non-Domestic Rating system was introduced in 1990.  Revaluations are subject to review every 5 years and the non-domestic properties have been revalued with effect from 1 April 1995, 1 April 2000 and 1 April 2005.  The next review will be in 2010.

 

The income from non-domestic rates is collected by the Council on the Government's behalf and paid into a national pool.  The monies are then redistributed between authorities by the Government and is based on authorities' adult population.  Areas which have few businesses or where property values are generally low are therefore not disadvantaged.

 

Rates are payable by the occupier on shops, offices, warehouses and factories.  Farm land and buildings, churches, sewers, public parks, certain property used for the disabled, property in an enterprise zone and moveable moorings are not rateable.

 

Unless the property is exempt from rates, all commercial properties have a rateable value.  Broadly speaking, the current rateable value from 1 April 2005 represents the annual rent the property could have been let for on the open market in 2003.  It is assessed by the Valuation Office.

 

The Valuation Office is an Executive Agency of the Inland Revenue.  It carries out valuations for non-domestic (business) rating purposes, and banding for council tax on behalf of the Office of the Deputy Prime Minister.

The Council calculates the bill by multiplying the rateable value by the 'poundage' better known as the 'uniform business rate'.  This amount is fixed each year by the Government.  A scheme for 'phasing in' reductions and increases of business rates is in place.  This scheme is complex and details may be obtained on request.  The rates bill is payable by monthly instalments which are due by the 6^th of each month.

 

 

Payment can be made online or at the Eastleigh Area Office, Unit 2, Wells Place, at your bank or building society, by standing order, credit / debit card or direct debit (PDF).  If the payment method is direct debit, the payment dates that are available are the 7^th or 21^st of each month.  Late payment may affect interest payable on overpayments following reductions in rateable values.

 

Residents can now check their Business Rates payments and outstanding balances online.

 

• Check your Business Rates account balance  

 

From 1 September 2007, the Council's website will provide a link to Business Rates accounts.  This link will show the overall balance on an account and give options to view balances for previous years.

 

Where appropriate, ratepayers will also be able to see what instalments they have paid and what outstanding instalments remain for the year.

 

Standard Multiplier  = £0.462

Small Business Rate Multiplier = £0.458

 

If the property is empty, no rates are payable for three months. This is applicable from when the property first became unoccupied. After the three month period, 100% of the charge becomes payable. Certain properties are exempt from empty rate charge. A full list is available on request.

 

Registered charities are entitled to an 80% reduction.  The Council also has the discretion to reduce the bill further depending on the policies of individual Councils for granting reliefs.

If you would like further information regarding charitable rate relief or would like an application form (PDF) please contact us at the address below.

 

 

Community sports clubs may also qualify for charitable rate relief provided membership is open to all sections of the Community (membership fees may be charged).  The organisation must promote community participation in healthy recreation or the advancement of the physical education of young people not undergoing formal education. 

 

Small Business Rate Relief

This relief was introduced by the Government in 2005 to ease the rates burden for small businesses.

 

Application must be made to the Local Authority and the business must occupy either:

 

(a) one property or,

(b) one main property and other additional properties providing those additional properties each have a rateable value of less than £2,200.

 

The rateable value of the property mentioned in (a), or the aggregate rateable value of all properties mentioned in (b), must be under £15,000 outside London or £21,500 within London on 1 April each year.

 

Ratepayers who meet the above conditions will have their rates for single (a) or main property (b) calculated using the small business non-domestic rating multiplier.  In addition, businesses with a rateable value of £5000 - £10,000 or less will receive a percentage reduction of up to 50%.  Properties with a rateable value of £4999 or less, will receive the maximum reduction of 50%.

 

Provided the ratepayer’s circumstances remain unchanged, the relief will remain in place up to 31 March 2010.