Business Rates Explanatory Notes 2024/25
Non-Domestic Rates
Non-Domestic Rates, or business rates, collected by London Borough of Redbridge is the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. The money, together with revenue from council taxpayers, locally generated income and grants from central government, is used to pay for the services provided by London Borough of Redbridge in your area. Further information about the business rates system may be obtained at: www.gov.uk/introduction-to-business-rates, and at the website of London Borough of Redbridge which is shown on your rates bill.
Business Rates Instalments
Payment of business rates bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow ratepayers to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact London Borough of Redbridge as soon as possible.
National Non-Domestic Rating Multiplier
The London Borough of Redbridge works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business nondomestic rating multiplier. The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are neither entitled to certain other mandatory relief[s] nor liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier.
Both multipliers for a financial year are based on the previous year's multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year unless a lower multiplier is set by the government. The current multipliers are shown on the front of your bill.
Rateable Value
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of Her Majesty's Revenue and Customs. They compile and maintain a full list of all rateable values, available at www.gov.uk/voa. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1 April 2021.
The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.
Further information about the grounds on which challenges may be made and the process for doing so can be obtained by contacting the VOA, or by consulting the VOA website: www.gov.uk/guidance/how-tocheck-your-rateable-value-is-correct.
Revaluations
All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1 April 2023. Revaluations ensure that business rates bills are up-to-date and more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.
Business Rate Reliefs
Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e. a reduction in their business rates bill). There are a range of available reliefs. Further details are provided below and at www.gov.uk/introduction-to-business-rates, or at the website of London Borough of Redbridge which is shown on your rates bill.
Temporary Reliefs
Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available at www.gov.uk/apply-for-business-rate-relief. You should contact London Borough of Redbridge for details on the latest availability of business rates reliefs and advice on whether you may qualify.
Small Business Rates Relief
If a ratepayer's sole or main property has a rateable value which does not exceed a set threshold, the ratepayer may receive a percentage reduction in their rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property. For example eligible properties with a rateable value below a specified lower threshold will receive 100% relief while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief. The relevant thresholds for relief are set by the Government by order and can be obtained from London Borough of Redbridge or at www.gov.uk/introduction-to-business-rates.
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either— (a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set by order.
The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period. Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be obtained from London Borough of Redbridge or at www.gov.uk/introduction-to-business-rates.
Certain changes in circumstances will need to be notified to London Borough of Redbridge by the ratepayer who is in receipt of relief (other changes will be picked up by London Borough of Redbridge). The changes which should be notified are—
(a) the property falling vacant,
(b) the ratepayer taking up occupation of an additional property, or
(c) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.
Charity and Community Amateur Sports Club Relief
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).
The London Borough of Redbridge has discretion to give further relief on the remaining bill. Full details can be obtained from the Business Rates team at business.rates@redbridge.gov.uk.
Transitional Rate Relief
At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases. Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. Further information about transitional arrangements may be obtained from London Borough of Redbridge or at www.gov.uk/introduction-to-business-rates.
Local Discounts and Hardship Relief
Local authorities have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full details can be obtained from London Borough of Redbridge.
Unoccupied Property Rating
Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are reoccupied. Full details on exemptions can be obtained from London Borough of Redbridge or from gov.uk at https://www.gov.uk/apply-for-business-rate-relief.
Subsidy Control
The new UK subsidy control regime commenced from 4 January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website at: https://www.gov.uk/government/collections/subsidy-control-regime.
Rating Advisers
Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS—website www.rics.org.) and the Institute of Revenues, Rating and Valuation (IRRV—website www.irrv.org.uk.) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.
Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
Information Supplied with Demand Notices
Information relating to the relevant and previous financial years in regard to the gross expenditure of London Borough of Redbridge is available at https://www.redbridge.gov.uk/council-tax/council-tax-booklet/. A hard copy is available on request by writing to the council or at 020 8708 4357.
Business Rate Supplements – Statutory Explanatory Note
The Business Rate Supplements Act 2009 enables levying authorities – county councils, unitary district councils and, in London, the Greater London Authority – to levy a supplement on the business rate to support additional projects aimed at economic development of the area. This power has also been extended to the mayors of Cambridgeshire and Peterborough, Liverpool City Region, West of England, and West Midlands combined authorities. Business Rate Supplements (BRS) are not applicable to properties with a rateable value of £50,000 or below, and authorities have discretion to increase that threshold. The total maximum BRS which may be levied by a levying authority is 2p per pound of rateable value. Levying authorities have the power to apply such reliefs to the BRS as they think appropriate and in such cases must include an explanation of the rules for the application of those reliefs in the final prospectus for the BRS. 6
“The business rate supplement applicable in London is being levied by the Greater London Authority in relation to the Crossrail project, which delivered the Elizabeth line. The rateable value threshold in 2024-25 for the Crossrail BRS is £75,000. Further information may be found in the Crossrail BRS final prospectus which is available at www.london.gov.uk/crossrail-brs.”
CROSSRAIL BRS RATEPAYER COMMUNICATION FOR 2024-25
What is the Elizabeth line (formerly Crossrail) and how will it benefit your business?
The Elizabeth line is London’s newest railway. It connects the outer suburbs and Heathrow airport to the West End, the City and Canary Wharf. As such, it is vital to the future of London’s economy. It was named the Elizabeth line in honour of the late Queen Elizabeth II.
The Elizabeth line has been the single largest investment in London’s infrastructure for decades. At the peak of construction, it employed up to 14,000 people. The central section opened in May 2022. Six months later, direct Elizabeth line services into central London from Reading, Heathrow, Shenfield, and Abbey Wood began. The final timetable for the entire railway was introduced in May 2023. The increased earnings it has brought – from new jobs and faster journeys – are benefitting businesses across London.
To find out more, visit www.tfl.gov.uk/modes/elizabeth-line/ or call the helpline on 0343 222 1234.
Developments in the funding of the Elizabeth line
The previous Mayor of London agreed a funding settlement with the government in 2010 for the Crossrail scheme. The Mayor and the Secretary of State for Transport agreed revised funding packages for Crossrail in December 2018 and November 2020.
How have London’s businesses help fund the Elizabeth line?
In April 2012, the previous Mayor introduced a Community Infrastructure Levy (MCIL) on new developments in London to finance Crossrail. The charging schedule changed in April 2019. The developer pays this levy.
Business ratepayers of larger properties have contributed through a special Crossrail Business Rate Supplement (BRS) since April 2010.
Under the current funding package, the GLA is expected to contribute a total of around £7 billion towards Crossrail. This is financed through the MCIL and the BRS. The BRS will need to be levied until the GLA’s Crossrail related borrowing is repaid. This should be no later than March 2041, in line with the published Crossrail BRS prospectus.
Does my business have to pay the Crossrail BRS?
Your rates bill makes clear if you are liable to pay the BRS. It applies only to assessments (for example business and other non-domestic premises) with a rateable value above £75,000. This threshold was increased from £70,000 to £75,000 on 1 April 2023 to reflect the impact of the 2023 business rates revaluation. This higher threshold means that at least 86 per cent of the capital’s non-domestic properties are expected to be exempt from paying the BRS in 2024-25.
How much do I pay if my property’s rateable value is above £75,000?
The Crossrail BRS multiplier for 2024-25 remains at 2p per pound of rateable value. Reliefs for the Crossrail BRS will apply on the same basis and at the same percentage rate as for your national non-domestic rates (NNDR) bill. However, there is no transitional relief scheme for the BRS.
Keeping you up to date
We will give ratepayers an annual update over the lifetime of the BRS.
Contact for more information
020 7983 4100; crossrail-brs@london.gov.uk; www.london.gov.uk/crossrail-brs
Finance, GLA, City Hall, London E16 1ZE
