Relief in rural settlements (Village shop rate relief)
Certain shops in rural settlements may be entitled to receive relief from rates where they provide a service to that settlement. A rural settlement is defined as a settlement of less than a 3,000 population and within Warwick district this includes all rural parishes excluding Whitnash and Cubbington.
At the Autumn Statement on 23rd November 2016 the Chancellor of the Exchequer confirmed that rural rate relief will double from 50% to 100% from 1st April 2017.
The government intends to amend the relevant primary legislation to require local authorities to grant 100% mandatory rural rate relief to take effect from 1st April 2018. However, before the requirement to grant mandatory relief comes into force local authorities are required to use their local discount powers to grant 100% rural rate relief to eligible ratepayers from 1st April 2017.
Mandatory rate relief
Mandatory rate relief is awarded for properties with a rateable value of less than £8,500 and where they are the sole village post office or general store within that settlement. Mandatory relief is also awarded to properties with a rateable value of less than £12,500 and where they are the sole public house or petrol filling station. Relief is at 50% of the rates charged and will, after an initial application, continue from year to year. Properties that are not the sole type of property detailed above may apply for discretionary rate relief provided they have a rateable value under £16,500.
Those properties that qualify for mandatory rate relief may also apply for discretionary rate relief up to the remaining 50%. You will need to complete an application form (below) and send it together with a set of the latest audited accounts.
Discretionary rate relief
Certain shops over the £8,500 mandatory threshold may apply for discretionary relief providing the rateable value is under £16,500. These may be any shops within the settlement which provides a benefit to that settlement. Relief, at the council’s discretion, may be awarded at any amount up to 100% of the full rates payable.
Any shop receiving discretionary rate relief will need to reapply each year and the amount of relief may be continued at the same rate, increased, decreased or removed completely.
Neither mandatory or discretionary village shop rate relief may be awarded in respect of empty properties.
The revised reliefs will apply from 1st April 2017.