Watford Borough Council

There are a number of different reductions available for business rates:

Transitional relief

After each revaluation there is a period of transition. No bill is allowed to increase or decrease by more than a set annual percentage. Any property with a large increase or decrease in its rateable value will therefore come under the transitional relief scheme, which has the effect of phasing the valuation in over a period of time. If transitional relief applies to your rates bill, it will be applied automatically.

The scheme for the 2005 revaluation will cap increases to rates bills over a 4 year period and will be funded by capping reductions in other rates bills.

The following caps will apply:

In addition to these restrictions, there is also an increase of 3.9% (Retail Price Increase)

Empty properties

If a property is empty and unused, no business rates are normally payable for the first three months for commercial premises and six months for industrial premises, thereafter the full charge will be payable and no further reduction will be allowed. An exemption will automatically be applied to your bill, if appropriate, when you advise the council that the property has become empty.

Charity relief

Charities are entitled to an 80% reduction in their bills. The Council has the discretion to reduce the bill further. In addition, the council has the discretion to grant relief to some other types of non-profit making bodies. Application forms can be requested on-line.

Rural rate relief

If your business property is in a designated rural area where the popuation is less than 3,000, you may be able to claim rural rate relief. Application forms can be requested on-line.

Hardship relief

This discretionary relief can be granted by the council if you are experiencing hardship and your business is considered to be important to the local community. There are no specific criteria for entitlement all applications are considered individually.

Rate relief for small businesses

A new form of relief for small businesses has been introduced with effect from 1 April 2005 and is called Small Business Rate Relief . A small business is any business with a rateable value of below £15,000.

The relief is available upon application annually and is granted to businesses with one assessment of below £15,000 or whose businesses who occupy other properties where the rateable value of these properties is under £2,200.The total of all the properties must be below £15,000.

Small businesses with a rateable value of £5,000 and below will receive 50% discount, this relief will decrease on a sliding scale of 1% for every £100 up to £9,999. All assessments below £15,000 will be charged the lower rate poundage of 41.5p (from 42.2p).

Rate relief for community amateur sports clubs

Registered Community Amateur Clubs (CASCs) can receive 80% rate relief. To qualify as a CASC, a sports club must:

• Be open to the whole community
• Be run as an amateur club
• Be a non profit making organisation
• Aim to provide facilities for, and encourage people to take part in, eligible sport

To register as a CASC please see: http://www.hmrc.gov.uk/charities/casc/register.htm or telephone the Inland Revenue Sports Clubs Unit on 01131 777 4147.