Business rates explanatory notes
2024-2025 Explanatory Notes
Non-Domestic Rates (Business Rates)
Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1st April 2013, authorities keep a proportion of the business rates paid locally. The money, together with revenue from council taxpayers, locally generated income and grants from central government, is used to pay for the services provided by local authorities in your area. Further information about the business rates system, may be obtained at: Business rates relief: Overview - GOV.UK
Business Rates Instalments
Payment of business rate bills are automatically set on a 10-monthly cycle. However, if you wish your payments to be made through 12 monthly instalments, please visit our online portal - My Business Rates Account
National Non-Domestic Rating Multiplier
Mid Devon District Council works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the national non-domestic rating multiplier (54.6p) and the small business non-domestic rating multiplier (49.9p). The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to certain other mandatory relief[s] or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier (49.9p), rather than the national non-domestic rating multiplier (54.6p).
Both multipliers for a financial year are based on the previous year’s multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year, unless a lower multiplier is set by the Government. The current multipliers are shown on the front of your bill.
Rateable Value
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of Her Majesty's Revenue and Customs. They compile and maintain a full list of all rateable values, available at Find a business rates valuation - GOV.UK.
The rateable value of your property is shown on your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1st April 2021 for the 2023 list.
The Valuation Office Agency (VOA) values all business properties for business rates. The valuation is based on information the VOA holds about your property. You can view and update this information here. You can contact the VOA here. If you are unable to use the online service you can also contact the VOA on 03000 501 501.
The Valuation Office Agency may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong, you can check your rateable value at Find a property - Valuation Office Agency - GOV.UK. Further information about the grounds on which challenges may be made and the process for doing so can be found on the VOA website
You can contact the VOA at here. If you are unable to use the online service you can also contact the VOA on 03000 501 501.
Revaluations
All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1st April 2023. Revaluations ensure that business rates bills are up-to-date, more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.
Business Rate Reliefs
Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e. a reduction in your business rates bill). There are a range of available reliefs. Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available at www.gov.uk/apply-for-business-rate-relief. You should visit our website for details on the latest availability of business rates reliefs and advice on whether you may qualify. Further details on reliefs are provided at Business rates relief: Overview - GOV.UK or at our website Business Rates - MIDDEVON.GOV.UK
Small Business Rates Relief (SBRR)
If a ratepayer’s sole or main property has a rateable value which does not exceed £14,999, the ratepayer will receive a percentage reduction in their rates bill for this property. For a property with a RV below £12,001 the relief is 100%. While eligible properties above the lower threshold and below a specified upper threshold may receive partial relief. The relevant thresholds for relief are set out in regulations and can be obtained at Business rates relief: Overview - GOV.UK and Small business rate relief - MIDDEVON.GOV.UK
Generally, this percentage reduction (relief) is only available to ratepayers who occupy either—
(a) One property with an RV not exceeding £14,999, or
(b) One main property and other additional properties providing those additional properties each have a rateable value not exceeding £2,899 and the sum of all the property occupied does not exceed £19,999.
For those businesses (mentioned above in 'b' that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a period of 12 months. Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be obtained at Business rates relief: Overview - GOV.UK.
Certain changes in your circumstances will need to be notified to Mid Devon District Council and The Valuation Office Agency by the ratepayer who is in receipt of relief.
The changes which should be notified are—
(a) Vacating the property
(b) Taking up occupation of an additional property
(c) An increase in the rateable value of a property occupied by the ratepayer outside of Mid Devon Districts Councils Boundaries
Please inform us of your changes by using our online self service portal My Business Rates Account
Charity and Community Amateur Sports Club Relief
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs). Mid Devon District Council has discretion to give further relief on the remaining bill. Full details can be obtained at on our rate relief page
Unoccupied Property Rate Relief
Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain other properties (for example industrial premises or listed buildings). Full details on exemptions can be obtained at Business rates relief: Overview - GOV.UK.
Rate Relief for Businesses in Rural Areas
Certain types of properties in a rural settlement with a population below 3,000 may be entitled to relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property has to be occupied.
Local Authorities are expected to use their local discount powers to grant 100% rural rate relief to eligible ratepayers.
Transitional Rate Relief
At revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.
Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. Further information about transitional arrangements and other reliefs may be obtained from the local authority or the gov website.
Supporting Small Business Relief
Supporting Small Business Relief was first introduced following the 2017 revaluation. A new scheme has been put into place to reflect the 2023 revaluation. The relief will cap bill increases at £600 per year for any business losing some or all of their Small Business Rate Relief or Rural Rate Relief as a result of the 2023 revaluation. The scheme will be in place for 2023/24, 2024/25 and 2025/26.
Business Rates Relief:2023 Supporting Small Business Relief, local authority guidance
Improvement Relief
This is being introduced on the 1st April 2024 where a qualifying property can obtain 100% relief on qualifying improvements made to a property which is currently being occupied.
6/2023: Publication of Business Rates Relief information - GOV.UK (www.gov.uk)
Local Discounts
Local authorities have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full details can be obtained at Non-profit making organisations relief - MIDDEVON.GOV.UK
Subsidy Control Limits (State Aid)
The new UK subsidy control regime commenced from 4 January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website at: https://www.gov.uk/government/collections/subsidy-control-regime
Rating Advisers
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website www.rics.org) and the Institute of Revenues, Rating and Valuation (IRRV - website www.irrv.org.uk) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
Information Supplied with Demand Notices
Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available at Finance - MIDDEVON.GOV.UK