National Non-Domestic Rates Leaflet 2020/2021
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www.conwy.gov.uk YOUR GUIDE To National Non-Domestic Rates 2021/22 Explanatory Leaflet A guide to what your business rates bill means Conwy A Progressive County Creating Opportunity CO N T E N TS How we are funded 03 How we spend the funding 04 How business rates are calculated 06 Your guide to business rates for 2021/22 07 Services we offer to businesses 10 Contact Us 11 We are happy to provide this document in large print, audio, braille and British Sign Language. How we are funded Did you know only 3 0 % of our funding comes from Council Tax? Revenue Support Grant (money we receive from Welsh Government) 53.50% Council Funding for 2021/22 Re-distributed (%) Business Rates (money received from Welsh Government) 16.73% Council Tax 29.77% Revenue Support Grant £127.138m Amount raised from Council Tax Payers £70.752m Re-distributed Business Rates £39.768m Total £237.658m BBuussiinneessss RRaatteess 1281//1292 PPaaggee 33 How we spend the revenue funding For the f inancial year April 2021 to March 2022 the Council has a revenue budget of £237.658m to invest in the community - Education and Schools £88.888m (37.40%) Social Care £69.182m (29.11%) Council Other Services £7.266m (3.06%) Spending (revenue) Contribution to the Fire Service for 2021/22 & National Park £6.750m (2.84%) (£M) Capital Financing £16.293m (6.86%) Council Tax Reduction Scheme £11.266m (4.74%) Environment, Roads & Facilities (ERF) £19.158 (8.06%) Leisure, Economy & Culture £6.470m (2.72%) Regulatory & Housing Services £5.451m (2.29%) Corporate Support Services £6.934m (2.92%) Revenue This is the money we use to pay 4 for yoTuhri sd aisy t thoe d mayo nseeryv iwces u -s seu tcoh p aasy edfuocr aytoinurg d yaoyu tro c hdialdy rseenr,v cicaersin -g s ufocrh as etdhuec ealtdinegrl yy oanudr c choilldercetnin, gca &ring for dispotshien ge lodfe yrolyu arn redc cyocllliencgt ianngd & disposingw oaf sytoeu. r recycling and waste. B u s i n e s s R a te s 2 1 / 2 2 Pa g e 4 How we spend the capital funding For the f inancial year April 2021 to March 2022 the Council has a capital budget of £33.728 million to invest in the community. Here are some examples - Economy and Culture Education and Schools £1.733m (5.14%) £9.024m (26.76%) school building improvement works library equipment digital access Leisure Services match funding of £0.467m (1.38%) projects Improving leisure facilities Other Services £1.356m (4.02%) Council theatres Spending IT equipment (capital) for 2021/22 Social Care £7.011m (20.79%) (£M) purchase of equipment Environment, Roads & Facilities learning disabilities £13.122m (38.90%) project Bryn Euryn Nurseries bridge & road maintenance play areas Regulatory & Housing Services street lighting £1.015m (3.01%) housing adaptations Capital This is the money we use on big investments - such as roads, buildings, schools, re-cycling wagons and leisure centres etc. B u s i n e s s R a te s 2 1 / 2 2 Pa g e 5 How business rates are calculated Rateable Values are based upon the open market annual rental value of the property as at the valuation date. Business Rates are a tax based upon the ‘Rateable Value’ of a non-domestic property. F o r e x a m p l e Rateable Business Rates Business O p e n Value multiplier Rates Liability 7,000 0.535 £3,745 A rate liability is calculated by multiplying the Non-Domestic Rating Multiplier (formerly known as a rate in the pound or the Rate Poundage) by the Rateable Value of a property. For the year commencing 1 April, 2021 the value has been set at 53.5, which means that for every £1 of Rateable Value, you will pay 53.5p in rates. This value is adjusted every year to allow for the effects of inflation. B u s i n e s s R a te s 2 1 / 2 2 Pa g e 6 Your Guide to busin ess rates 2021/22 The information given below explains some of the terms which may be used on a non-domestic rate demand and in the supporting information. Further information about liability to non-domestic rates may be obtained f rom the Council. Non-domestic rates The non-domestic rates collected by billing authorities are paid into a central pool and redistributed to county and county borough councils and police and crime commissioners. Your council and police and crime commissioner use their shares of redistributed rate income, together with income from their council tax payers, revenue support grant provided by the Welsh Ministers and certain other sums, to pay for the services they provide. Further information about the non-domestic rates system, including what reliefs are available may be obtained via www.businesswales.gov.wales Rateable Value The rateable value of non-domestic property is fixed in most cases by an independent valuation officer of the Valuation Office Agency which is an Executive Agency of Her Majesty’s Revenue and Customs (HMRC). They compile and maintain a full list of the rateable values of all non-domestic properties in Wales, available on their website www.voa.gov.uk. All non-domestic property is normally revalued every 5 years. From 1 April 2017 the rateable value of a property represents its annual open market rental value as at 1 April 2015. For composite properties which are partly domestic and partly non-domestic the rateable value relates to the non-domestic part only. The values of all property in respect of which rates are payable to your authority are shown in the local rating list, a copy of which may be inspected at The Valuation Office Agency, or at the Coed Pella office of Conwy County Borough Council, Conway Road, Colwyn Bay, LL29 7AY. Revaluation All rateable values are reassessed at a general revaluation to ensure rates paid by any one ratepayer reflect changes over time in the value of their property relative to others. This helps maintain fairness in the rating system by updating valuations in line with changes in the market. The current rating list came into effect on 1 April 2017 and is based on values as at 1 April 2015. In the year a revaluation takes effect, the multiplier is rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money. Transitional rate relief The Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2016 (2) make provision for transitional relief for small businesses adversely impacted by the revaluation of non-domestic hereditaments taking effect from 1 April 2017. Full details including the eligibility criteria, the exceptions, the procedural requirements and the relevant rates reliefs are available from the billing authority. Alteration of rateable value The rateable value may alter if the valuation officer believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) may also in certain circumstances propose a change in value. If the ratepayer and the valuation officer do not agree the valuation within 3 months of the proposal being made, the matter is referred by the valuation officer as an appeal by the proposer to the Valuation Tribunal for Wales. Further information about how to propose a change in a rateable value is available from The Valuation Office Agency. Non-domestic rating multiplier This is the rate in the pound by which the rateable value is multiplied to give the annual rate bill for a property. The multiplier set annually by the Welsh Ministers is the same for the whole of Wales and except in a revaluation year cannot rise by more than the rate of the increase in the retail prices index. B u s i n e s s R a te s 2 1 / 2 2 Pa g e 7 Proposals and appeals Information about the circumstances in which a change in rateable value may be proposed and how such a proposal may be made is available from the local valuation office shown above. Further information about the appeal arrangements may be obtained from the Council or from the Valuation Office Agency. The Valuation Tribunal for Wales provides a free independent appeals service dealing with appeals about Non-Domestic Rates and Council Tax. Their contact details can be found here www.valuation-tribunals-wales.org.uk Unoccupied property rating Owners of unoccupied non-domestic properties may be liable to empty property rates which are charged at 100% of the normal liability. Liability begins after the property has been empty for 3 months or, in the case of certain industrial properties, after the property has been empty for 6 months. Certain types of property are exempt from empty property rates. Charitable and discretionary relief Charities and community amateur sports clubs are entitled to 80% relief from rates on any non- domestic property where - (a) in the case of charities, the property is wholly or mainly used for charitable purposes; or (b) in the case of a club, the club is registered with HM Revenue & Customs. Billing authorities have discretion to remit all or part of the remaining 20% of the bill on such property and can also give relief in respect of property occupied by certain bodies not established or conducted for profit. For more information regarding clubs you should contact HM Revenue & Customs address, (website is www.hmrc.gov.uk). Should you wish to apply for Charitable and Discretionary Rate Relief please request a claim form from the Council.