Shropshire Council

2017 Revaluation Discretionary Rate Relief

In the Spring Budget on 8 March 2017, the Chancellor announced that the Government will provide funding for locally designed rate relief schemes aimed at reducing increases in rates liabilities caused by the 2017 Rating List Revaluation, which came into effect on 1 April 2017.

Shropshire Council has been allocated the following funding over the next four years.

 

Amount of discretionary pot awarded (£000s)

Year

2017-18

2018-19

2019-20

2020-21

Shropshire Council

1,308

635

262

37

The main points of relief scheme devised by Shropshire Council are as follows:-

  • For the financial year 2017-2018 the relief has been set at 87% of any rates increase compared to the 2016-2017 financial year;
  • Aimed at occupied hereditaments with a Rateable Value of between £15,000 and £199,999 inclusive;
  • Charities and national businesses are excluded from receiving the relief;
  • Relief will end when a hereditament becomes unoccupied;
  • Relief is not transferred to subsequent new occupiers;
  • This new relief will only be awarded after any other relief entitlements have been applied;
  • Any business that qualifies for the relief that has a reduction in RV with effect from 1 April 2017 will have the new discretionary rate relief reduced accordingly, potentially to zero.

Full details of the scheme can be viewed at in the cabinet minutes on the committee services website - New Business Rates Discretionary Relief Scheme 2017-2018.

It should be noted that the amount of relief awarded will be recalculated, and if necessary cancelled entirely if:

  • The rating assessment is amended by the Valuation Office Agency;
  • Other reliefs are awarded; or
  • The hereditaments becomes unoccupied.

The scheme operates on a tapering basis, so each year the amount awarded will reduce in line with the Government funding allocations. The Council will announce the amount of support for 2018-19 and later years in advance of the start of each financial year. Eligible businesses will be notified individually by means of their rates bill for the financial year, which will show the amount of relief awarded.

As this is a discretionary rate relief, any relief awarded must comply with the EU law on State Aid. This means that, including this relief, you shall not receive more than 200,000 euros of De Minimus aid within the current financial year, or the previous two financial years. By accepting the relief you will confirming that you comply with De Minimus Regulations EC 1407/2013.

Further information on State Aid law can be found at on the gov.uk website.

How to apply for 2017 Revaluation Discretionary Rate Relief

We have already contacted the businesses that we believe meet the above qualifying criteria and have automatically awarded the relief. This will be shown on your latest bill as “Revaluation Discretionary Relief”.

If you do not wish to receive the relief please advise the Business Rates Team at business.rates@shropshire.gov.uk within two weeks and the relief will be withdrawn. If you do not contact the Business Rates Team then we will assume that you wish to apply for the relief.

However, if you consider that you should qualify for this relief and haven’t been awarded it, please contact the Business Rates Team at business.rates@shropshire.gov.uk providing your full contact details and why you should be entitled.