1. Summary
1.1 Under section 44A of the Local Government Finance Act 1988 the Council has a discretionary power to allow rate relief where a commercial property is partly occupied for a short period of time. The amount of relief is calculated on a statutory basis based on the rateable value of the empty portion of a property. The appropriate rateable value is provided by the Valuation Office Agency.
1.2 Section 44A relief has always been awarded in accordance with legislative requirements to assist with phasing the occupation or vacation of a building, or to assist a company suffering a downturn in business by allowing them to reduce the rates payable for a short period on a part of their offices they are unable to occupy and utilise.
1.3 Following the business rates retention scheme, there are now different financial implications associated with this, and the purpose of these guidelines is to help decision makers when considering partly occupied rate relief. It should be stressed that each case should be based on its own merits and that the decision to award or not is at the discretion of the Council for which there is no appeal (but we will be prepared to review decisions)
1.4 The Council’s discretion only extends to deciding whether or not to allow relief and what constitutes a short period of time. The unoccupied part of the property will then benefit from a three-month exemption from rates, or six months in the case of certain industrial properties. Following the expiry of this exemption period the occupied rates will then apply to the whole property.
2. Financial Implication(s)
2.1 Following the implementation of the business rates retention scheme from April 2013, the Council will share the cost of awarding partially occupied rate relief with East Sussex County Council, East Sussex Fire Authority and Central Government based on the following split:
- Central Government bears 50% of the value.
- Wealden District Council bears 40% of the value.
- East Sussex County Council bears 9% of the value.
- East Sussex Fire Authority bears 1% of the value.
3. Explanation
3.1 At all times consideration will be made for the regulations contained within section 44A of the Local Government Finance Act 1988 and any relevant case law.
3.2 The Council recognises that awarding partially occupied rate relief is beneficial to local businesses and can contribute to regenerating the local economy. This form of relief will therefore be awarded in all cases that meet the statutory requirements with consideration given to the impact upon the community should the business close.
3.3 The amount of rate relief that is awarded is determined by statute and is calculated by reference to the rateable value ascribed to the unoccupied area by the Valuation Office Agency. Applications will only be considered in respect of unoccupied parts of a property that can be clearly defined and are reasonably segregated from the occupied part of the property.
3.4 No award shall be made where it appears to the Council that the reason that part of the property is unoccupied is wholly or mainly for the purposes of applying for rate relief.
3.5 A ratepayer making an application under section 44A shall provide a plan of the property showing the dimensions of the occupied and unoccupied area of suitable quality to enable the Valuation Office Agency to apportion the rateable value of the property between the occupied and unoccupied areas. Applications cannot be considered until such time as a plan is provided and the unoccupied part has been
inspected. Relief will not be considered for a period after which full occupation has taken place.
3.6 The effect of the apportioned values applies as the period beginning with the day on which the property became partly unoccupied and ending with the first day on which one or more of the following events occurs:
- The occupation of any of the unoccupied part of the property.
- The ending of a period in which the apportionment(s) was required.
- The complete occupation of the property.
- The complete vacation of the property.
- The Council is unable to verify, following reasonable notice, that the area remains unoccupied.
4. Right of Appeal
4.1 There is no statutory right of appeal against a decision made by the Council regarding partially occupied relief. However, the Council recognises that ratepayers should be entitled to have a decision reviewed if they are dissatisfied with the outcome.
4.2 The ratepayer may ask for a review against a decision to refuse relief within four weeks of being notified of the refusal. Any review request must be in writing and should set out the reasons for the appeal.
4.3 Reviews will be considered by the Head of Customer Services.
4.4 If after a review, the applicant remains dissatisfied with the way the application was dealt with, they can complain to the Local Government and Social Care Ombudsman.
4.5 Any appeal against the Council’s decision not to grant part occupied relief under section 44A Local Government Finance Act 1988 would need to be challenged by judicial review under Section 138 Local Government Finance Act 1988.