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Exemptions and Reliefs

Do you own unoccupied business premises?
Important Changes to Empty Property Charges - View information to find out more.

Exemptions from Unoccupied Rates
If you are the owner of or are leasing a business property which is not being used and is substantially empty, unless the property falls into one of the exempt categories, you will be subject to an Empty Property Rate for which a liability has been established at 50% of the full occupied charge. Empty property rates do not become payable until a commercial property has been continuously empty for more than three months. After that time, the 50% charge is levied whilst the property continues to remain unoccupied. It should be mentioned that a change of owner or leaseholder does not attract an additional three month 'rate free' period. However, there is a new three month period if the property is reoccupied for a period of more than six weeks.

Certain classes of property are exempt from unoccupied property rating. These include:

• Property whose owner is prohibited by law from occupying it or allowing it to be occupied.
• Property which is kept vacant by reason of action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting the occupation of the property or acquiring it.
• Listed Buildings.
• Property with a Rateable Value of less than £1,900. This threshold increased to £2,200 with effect from 1st April 2005. With effect from 1st April 2009 this threshold increases from £2,200 to £15,000 (for financial year 2009/10 only).
• Industrial premises, e.g. factories and warehouses (but not retail warehouses) - Industrial premises are deemed to be unoccupied if they only contain plant, machinery or equipment which was used on the premises when the property was last in use, or which is intended for use on those premises.
• Property where the owner is entitled to possession only in the capacity as the personal representative of a deceased person, as a liquidator, as a trustee under deed of arrangement or where the owner is the subject of bankruptcy proceedings.

Exemptions from Occupied Rates
Some types of property are exempt from rating and no Business Rates are charged on them. Exempt properties include:

Agricultural land and buildings
Land and buildings used for agricultural purposes are exempt from Business Rates. The exemption extends to market gardens (but not garden centres), allotments, nursery grounds and orchards.

Fish farms
Fish farms are exempt but this exemption does not extend to the rearing of fish for sale for ornamental use.

Churches and other places of worship
Places of public religious worship belonging to the Church of England or Church of Wales or which are certified as a place of religious worship are exempt. Church halls, chapel halls and similar buildings are exempt provided that they are used in connection with a place of public religious worship.

Sewers
Property consisting of a sewer or an accessory belonging to a sewer is exempt.

Public Parks
Public Parks and similar amenities are exempt.

Certain property used for disabled people
Properties that are wholly used for the training, welfare and some other associated services for disabled people are exempt.

Swinging moorings for boats
Certain types of mooring are exempt.

Charitable Rate Relief

Occupied Properties
Where a property is occupied by a charity or trustees of a charity and is used wholly or mainly for charitable purposes (whether of that charity or of that and other charities), the maximum amount payable is 20% of the normal rates bill.

Unoccupied Properties
Mandatory relief may also be granted in respect of unoccupied properties. Where the ratepayer is a charity or trustees of a charity and it appears that when next in use the property will be wholly or mainly used for charitable purposes (whether of that charity or of that and other charities), the charge is 10% of the full rates bill.

The question of whether an organisation is a charity or not is usually resolved by reference to the register of charities maintained by the Charity Commissioners. Absence from the register does not mean that an organisation is not a charity because it may be excepted from the register.

The Council has the discretion to give you 100% relief if it is considered appropriate. Each case is looked at on it's own merits. This Authority's general policy recommends that all organisations which are registered as charities and are providing local public services can be granted the additional relief. This relief is subject to approval by the Council's Executive.

If you wish to apply for Mandatory/Discretionary relief, please contact the Business Rates Team for an application form on (01276) 707136 or revenues@surreyheath.gov.uk.

Your application must be supported by the following:

• Where the organisation is a registered charity, a copy of the Charity Registration index slip.
• A statement or documentation of the organisation's constitution/rules and aims/objectives.
• Latest audited accounts and balance sheet.

If your application is successful, the entitlement continues from year to year, unless of course there is any change in circumstance that affects your organisation's entitlement to relief. A review is carried out each year, when all recipients of relief are required to reaffirm that their circumstances have not changed since they last submitted an application.

Discretionary Rate Relief
Premises occupied by non-profit making organisations can qualify for up to 100% rate relief at the discretion of the Council. The categories of non-profit making organisations eligible to apply for Discretionary Rate Relief are prescribed by law. Relief may be granted in respect of the following:

• Any property which has been given the mandatory relief of 80%.
• Any property occupied by one or more institutions or organisations not established for profit and whose main objectives are charitable, or are otherwise philanthropic or religious, or concerned with education, social welfare, science, literature or the fine arts.
• Any property wholly or mainly used for the purposes of recreation, and all or part of it is occupied for the purposes of a club, society or other organisation not established or conducted for profit.

Rate Relief under these provisions is subject to approval by the Council's Executive.

If you wish to apply for Discretionary relief, please contact the Business Rates Team for an application form on (01276) 707136 or revenues@surreyheath.gov.uk.

Rate Relief for Former Agricultural Premises
The purpose of this scheme is to make relief available for new farm diversification enterprises.

New non-agricultural businesses set up on land or in buildings which were previously agricultural may qualify for 50% mandatory relief until 14th August 2006.  One of the qualifying conditions for this type of relief is that the Rateable Value must not be more than £7,000.

The Council has the discretion to increase the relief above the 50% mandatory level up to a maximum of 100%.

For further information concerning this form of rate relief, please contact the Business Rates Team on (01276) 707136 or revenues@surreyheath.gov.uk..

Rural Rate Relief
The Rural Rate Relief Scheme came into effect from 1st April 1998. The Scheme introduced a new mandatory rate relief to certain types of businesses in rural areas where they meet certain criteria. The Scheme also granted local authorities with discretionary powers to award rate relief to other businesses in rural areas, again meeting certain criteria.

Mandatory Relief
Certain types of businesses may qualify for 50% mandatory relief. First and foremost, the premises must be in a rural settlement with a population of less than 3,000 and that settlement must be within the boundaries of the designated rural areas. The designated rural areas are shown on a Rural Settlement List.

Businesses that qualify for mandatory relief are:

• General stores (selling food and household goods) and post offices, providing the Rateable Value is £6,000 or less and the business is the only one of its type in the rural settlement. The threshold increases to £7,000 with effect from 1st April 2005.
• Any food shop with a Rateable Value of £6,000 or less. The threshold increases to £7,000 with effect from 1st April 2005.
• Public houses and petrol filling stations, providing the Rateable Value is £9,000 or less and there are no other such facilities in the rural settlement.  The threshold of £9,000 Rateable Value increases to £10,500 with effect from 1st April 2005.

The Council has discretion to give further relief on the remaining bill in respect of rural businesses already entitled to mandatory relief.

As it currently stands, there are no qualifying rural areas within the Borough of Surrey Heath.

Discretionary Relief
Local authorities may grant up to 100% discretionary relief to other businesses operating within the rural settlement areas where the property has a Rateable Value of £12,000 or less and the business is of benefit to the local community having regard to the interests of all Council Tax payers.

As it currently stands, there are no qualifying rural areas within the Borough of Surrey Heath.

Properties which are partly unoccupied
The general principle is that occupation of part of a property is deemed to be occupation of the whole property. However in certain cases the Council has discretionary powers to award rate relief in respect of partly occupied properties under Section 44A of the Local Government Finance Act 1988. This entails the Council seeking an apportionment of the Rateable Value between the occupied and unoccupied parts from the District Valuer and Valuation Officer of the Inland Revenue. A concession may then be made in respect of the unoccupied area.

Section 44A may only be enacted if it appears to the Council that the premises will be partly unoccupied for a short time only. A "short period of time" is not defined and is left for the Council to decide. In general, the allowance is granted to the end of the financial year and amended if there are any changes which affect the entitlement at any time during the year.

There is no specific application form but a request for relief under the provisions of Section 44A should be made in writing during the financial year in which relief is sought. A plan clearly indicating the occupied and unoccupied areas should accompany the application to assist with the apportionment of the Rateable Value. Your application together with the plan should be sent to:

Surrey Heath Borough Council
Business Rates Team, Surrey Heath House, Knoll Road, Camberley, Surrey GU15 3HD