Business Rate Relief on the grounds of Hardship
The Council has the discretion to reduce the amount a ratepayer is liable to pay as a result of a business suffering unexpected hardship arising from short-term unexpected circumstances (e.g. the impact of flooding affecting customer access to the business), to the extent that the viability of the business would be threatened if an award were not made.
The Council defines business viability as the ability of the business to remain solvent while meeting its financial obligations to creditors and continuing its business operations.
Relief will not be considered where a business is facing a market downturn in trade, increased competition or increasing costs unless there are wider local amenity issues that an award of relief will help ameliorate, e.g. the potential closure of the only shop in a village.
Each case will be judged on its merits. Relief will be awarded where the Council is satisfied that:
• the ratepayer would sustain hardship if no relief is granted; and
• it is reasonable for the Council to grant the relief having due regard to the interests of the Council Tax payers
Guidelines for Consideration of Hardship Relief
a) Any decision must be balanced against the wider interests of the council tax payers of the Borough.
b) There must be proof that hardship exists.
c) Evidence must be provided to support the application, including as a minimum:
• A detailed business plan and cash flow forecast covering at least the next 12 months. This should demonstrate how the company expects to become sustainable following the ending of any Hardship Relief period.
• A copy of the business’s accounts for the previous two years.
d) It is expected that businesses should have taken prompt action to mitigate the factors giving rise to hardship (e.g. challenging an increased rateable value).
e) The amount of rates that will be remitted will depend upon the circumstances of each case and will be effective for a set period. Relief will be withdrawn on the sale of the business or a change of occupier.
f) It is unlikely that relief will be awarded in cases where there is little expectation of economic survival of the business beyond any relief period.
g) The purpose of this policy is to support local businesses in the community. In assessing this factor the Council will consider the following criteria:
• the business’s contribution to local distinctiveness
• the size of the business – the Council would normally prioritise smaller businesses although relief is potentially available for all businesses
• how the granting of rate relief will be in the interest of council tax payers.
You may apply via email businessrates@testvalley.gov.uk. You will still need to supply the above information.