Who sets the Business Rates & other frequently asked questions
Q/ Who sets the Business Rates?
Business Rates are set nationally by the UK Government, rather than by a town or county council.
Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories. Note that a property does not have to be used for a business to be rateaeble. If it is used for non-domestic purposes then it is likely to be rateable.
Q/ What is Rateable Value?
The Rateable Value is an estimate of the open market rental value that a property could achieve, on a specified date. RV is assessed by valuation officers from the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenues & Customs. The RV can vary according to the type, size and location of the property.
The UK Government has an online page where you can find the rateable values of all business premises in England and Wales.
The rateable value is not the amount you pay in business rates, but the figure that is used to calculate the business rates you have to pay. You can work out how much you will actually be charged by multiplying the rateable value by an amount, set by the government, called a ‘multiplier’. The relevant multiplier can be found in a simple table. Some businesses can deduct Business Rates Relief from their business rates, reducing the total due, as described below.
Properties with a rateable value of £12,000 or less are exempt from business rates.
Q/ How does this effect Business Rates Relief?
Those properties with a rateable value up to £15,000 are eligible for small business rates relief.
There are other reliefs and exemptions, including an 80 per cent discount for properties used by charities (More: Business rates relief).
The amount of relief awarded depends on the Rateable Value of the property as follows:
- Rateable value of £12,000 or less – 100%
- Rateable value of between £12,001 and £15,000 – the 100% relief is reduced on a sliding scale which is approximately 1% for every £30 increase in RV over £12,000
- Rateable value of between £15,001 and £50,999 – the liability is calculated using the lower small business multiplier
For the latest information, visit Small Business Rate Relief.
Property valuations for both council tax and business rates are the responsibility of a national body, the Valuation Office Agency (VOA).
Q/ What about Business rates relief or exemptions?
Shropshire Council may agree that, in certain circumstances, you may be entitled to a relief or exemption against your Business Rates bill.
(More: Rates, relief and exemptions)
Q/ Can I challenge my business rates?
Yes, if you think that your Rateable Value is too high. You can explain what you think it should be and provide evidence. The VOA may accept your challenge and change the Rateable Value.
You must complete a Check case before sending a Challenge case to the VOA.
Q/ Where do my Business Rates go?
Business rates contribute towards the cost of local services. Under the business rates retention arrangements, local authorities retain at least 50% of the business rates they collect.
The money is used to pay for the services provided by your local authority and other local authorities in your area.
Q/ Who sets rents for shops?
The property’s owner/landlord will set the rents for a particular property, whether this is a private landlord or a local council.
Q/ Who decides what businesses go into empty shops?
Whoever owns the property makes the decisions on who goes into that property. A local council has no say in this, unless they own the property.
Q/ Who is responsible for the upkeep of local roads and highways?
Shropshire Council has responsibility for their highway network.
For more information: https://www.shropshire.gov.uk/roads-and-highways/
To report a highways fault or concern, visit: https://www.shropshire.gov.uk/roads-and-highways/report-a-highways-fault-or-concern/
Q/ What is Oswestry Town Council responsible for?
Check out their overview of town council services.
