Businesses and other occupiers of non-domestic properties pay non-domestic rates (generally known as business rates). These pages provide information on how business rates are calculated and where your money goes after it has been collected.
From April 2013, the government has reformed the way in which local government is funded through the introduction of the business rates retention scheme. Further information can be found at the Department for Communities and Local Government.
Salford City Council does not have any control over the level of the rate charge on properties within the city. The rate charge is based on a property's rateable value as assessed by the Valuation Office Agency which is an executive agency of HM Revenue and Customs.
The rateable value is multiplied by the rate in the pound (sometimes referred to as 'the multiplier') which is set by central government each year, usually in line with inflation, unless there is a revaluation taking place. Transition arrangements may also apply to some properties and can affect the amount payable.
Rateable value review
The original rating list came into effect on 1 April 1990 with revaluations taking place in 1995, 2000, 2005 and 2010. The next revaluation due in 2015, has now been deferred by central government and is due to take place in 2017. Further information is available from the Valuation Office Agency.
Transition was introduced in 1990 to limit the level of increases and reductions ratepayers faced in the change over to business rates from general rates. These provisions have also continued in order to reduce the impact of the revaluations taking place in 1995, 2000, 2005 and 2010.
Business rate deferral scheme
The government put in place a business rates deferral scheme which gave you the option of spreading the retail price index increase in your 2012 to 2013 bill over three years.
Businesses were able to defer payment of 3.2% of their 1 April 2012 to 31 March 2013 bill until 2013 to 2014 and 2014 to 2015. Applications for deferral had to on or before 31 March 2013
Changes introduced for unoccupied new builds from October 2013
The government has introduced a new temporary measure for unoccupied new builds from October 2013. Unoccupied new builds will be exempt from unoccupied property rates for up to 18 months (up to state aid limits) where the property comes on to the list between 1 October 2013 and 30 September 2016. The 18 month period includes the initial three or six month exemption and so properties may, if unoccupied, be exempt from non-domestic rates for up to an extra 15 or 12 months.
Proposed changes from 1 April 2014
The chancellor in his autumn statement announced the following plans to be effective from 1 April 2014. This is subject to the required legislation being passed where applicable:
- The 3.2% RPI increase for 2014 to 2015 will be capped at 2%. The multipliers for 2014 to 2015 are small business non-domestic multiplier is 47.1 pence. The non-domestic multiplier is 48.2 pence.
- There will be a £1,000 discretionary discount for some retail premises with a rateable values of £50,000 or less for two years. Please see the government's long term economic plan for further details. Please note this relief may not be awarded to eligible accounts until April 2014 at the earliest, so the annual bill issued mid-March 2014 will not show it. As soon as it is awarded an amended bill will be issued. Please pay the amounts shown on your latest annual bill until a revised bill is sent to you. Any payments made will be taken into account on revised bills. This scheme is subject to state aid limits. We intend to automatically grant this discount in most cases where we feel the business is eligible, however we may need to write to some businesses for further information. If you have not had the discount awarded and received a revised annual bill by 15 May 2014 and you feel that you qualify please contact us.
- The doubling of small business rate relief percentage is being extended for a further year until 1 April 2015. We will automatically adjust your bill if this applies to your account.
- Ratepayers receiving small business rate relief that take on an additional eligible property, which would currently disqualify them from continuing to receive the relief will be able to keep their existing small business rate relief entitlement for 12 months.
- Ratepayers have the option to pay over 12 monthly instalments rather than the current 10. If you would like to pay your annual business rate bill by a 12 monthly instalment plan, you must let us know immediately by emailing the business rates team. Depending on when we receive your request, if it is later in the year, we may be able to spread your instalments over the maximum remaining months available in the financial year and issue you with revised payment details - if your account is not subject to certain recovery action.
- An update regarding business rates appeals processing timescales was also detailed in the autumn statement.
Flood support schemes
The government have announced a flood support scheme to assist businesses recover from the adverse weather since 1 December 2013. Details of the scheme can be found below, if you think you may qualify for business rate relief because you meet the criteria please contact us.
- Council tax and business rates booklet 2014 to 2015 (Adobe PDF format, 2.5mb)
- Council tax and business rates booklet 2013 to 2014 (Adobe PDF format, 1.4mb)
- HM Government flood support schemes (Adobe PDF format, 245kb)
If you are unable to view documents of these types, our downloads page provides links to viewing software.
Who to contact
- Customer and Support Services
- Civic Centre
Map to this location
- 0161 909 6542
This page was last updated on 6 March 2014