Business rates relief

Discretionary revaluation relief scheme 2017

As part of his budget in April 2017, the Chancellor of the Exchequer announced a range of measures to support businesses which had suffered increases in their rates bills as a result of the 2017 Revaluation. These measures were in addition to the already announced Transitional Relief Scheme.

As part of these measures, we were allocated £2.615m over 4 years towards a local Discretionary Relief Scheme as set out in the table below.

Amount of discretionary pot awarded
Year Amount (£)
 2017/18  1,525,000
 2018/19  741,000
 2019/20  305,000
 2020/21  44,000

No flexibility is allowed between years. Awards made under this scheme will, therefore, reduce year by year over the lifetime of the scheme.

We have approved the following scheme which awards additional relief in proportion to the level of increase suffered by an eligible business.

Eligibility

Businesses may be eligible for extra transitional help with their Business Rates if they meet the following criteria:

  • The premises in question are occupied and being used for trading purposes
  • The business suffered an increase in Rateable Value (RV) and Business Rates payable as a result of the Revaluation 
  • The rateable value of the property as at 1st April 2017 was between £15,000 and £200,000
  • You have no more than 2 business properties in the UK, and their combined RV does not exceed £400,000
  • The property is not part of a chain (this includes Franchises)
  • You comply with State Aid rules i.e. that any award made under this scheme will not breach the State Aid limit of €200,000 over a 3 year period (see below)
The business must also not fall into any of the following categories:

  • Financial services (e.g. banks, building societies, cash points, bureau de change, payday lenders, pawn brokers etc.)
  • Gambling establishments (e.g. betting shops etc.)
  • Medical services receiving NHS funds
  • Sex establishments (e.g. lap dancing clubs, adult shops etc.)
  • Post office sorting offices
  • Amusement arcades
  • Communication station
  • Funded by Central Government or an agency thereof

We reserve the right to judge the nature of any business and its eligibility for the scheme.

Calculation of the relief

The amount of relief awarded will be calculated as follows:

Relief = (A ÷ T) x F

  • A = Amount of increase in bill for the eligible property (after Transitional and other reliefs have been taken into account)
  • T = Total increase in the bills of all eligible businesses (after Transitional and other reliefs have been taken into account)
  • F = Funding available in year for the scheme in the relevant year (this amount is calculated each year by the Council, taking into account conditions imposed by the Government on the funding)

We will award the relief by applying a discount to your rates bill. 

How to apply

We sent letters out to identified businesses in the borough with information about the new scheme. If you did not receive a letter, but think you may be eligible for the relief, you are still encouraged to apply. 

To apply, you must download and complete the application form and return it, as soon as possible, to:

Wandsworth Council
Business Rates Service
PO Box 65993
Town Hall
Wandsworth High Street
London
SW18 9LB

Your application must reach us by 31 December 2017. Applications received after 31 December 2017 will not be considered.

Applications received by 30 September 2017 can expect a preliminary discount to be applied to their account in November 2017. Applications received after that date but before the final deadline of December 31 2017 can expect a discount to be applied to their account in February 2018.

Early applicants may receive a secondary discount in February depending on the level of take up of the scheme.

Future years’ entitlements to relief will be included in your bill. No further application is necessary.

Statement of notice of loss of relief in the future

The scheme will be in place for 4 years. The amount of funding available in each year will reduce significantly over that period meaning that the amount of relief available to successful applicants will reduce each year. No relief will be available after 31 March 2021.

Changes of circumstances

Should any change in the circumstances of the business affect any of the eligibility criteria above, such as a revaluation on appeal, then any relief payable under this scheme will be adjusted accordingly.

State aid

Whilst we do not anticipate that any businesses likely to receive Discretionary Relief under this scheme will breach the state aid rules, we are required by the Government to seek confirmation from businesses that this is the case. State aid is usually in the form of grants, loans or tax breaks.

Find out more about state aid.