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You are here: Home > Business and Planning > Information for Businesses > Business rates > Reliefs and Reductions > Rural Rate Relief

Rural Rate Relief

This section allows you to download the Rural rate relief application form and gives advice on when and how to use the form.

Download the form

 I want to download the Rural rate relief application form (pdf) (57.6K)

Legislation concerning Rural rate relief

The Council is able to provide 50% mandatory rate relief and up to 100% discretionary rural rate relief to a range of rural businesses as a result of the Local Government and Rating Act 1977 and the Rating (Former Agricultural Premises and Rural Shops) Act 2001. 

To qualify some specific criteria must be met. 

What are the criteria?

• For both mandatory and discretionary rural rate relief the property must be within a settlement on the Council's rural settlement list for the financial year concerned.         

Local authorities are required to compile and maintain a rural settlement list, and make it available for inspection from 1 January each year.

To be included on the list the settlement must be within a designated rural area and appear to have a population of less than 3,000 on 31 December.

The list must identify the boundaries of the settlement.

The rural parishes of Salfords and Sidlow have been designated in the legislation as Rural Areas in which the Council can define rural settlements.

These settlements have been based on the Local Plan and on village populations in the 2001 census.

The list can be viewed at the Town Hall in Reigate.

• If the whole or part of the property is used as a qualifying general store or post office, and the property has a rateable value of £7,000 or less, then it can qualify for 50% mandatory rural rate relief.

A property is used as a qualifying general store if it fulfils the following criteria:     

1. A trade or business consisting wholly or mainly of the sale by retail of both food for human consumption (excluding confectionery) and general household goods is carried on at the property, and
   
2. Such a trade or business is not carried on in any other property, or part of a property, in the settlement concerned.           

A property, or part of property, is used as a qualifying post office if it fulfils the following criteria:

• If the whole or part of the property is used as a qualifying public house or petrol filling station, and the property has a rateable value of £10,500, or less, then it can qualify for 50% mandatory rural rate relief from 1 April 2005.         

A property, or part of a property, is used as a qualifying public house if it fulfils the following criteria:

1. A justices' on-licence within the meaning of the Licensing Act 1964, (other than a Part IV licence within the meaning of the Act), is in force for the premises, and
   
2. No other property, or part of a property, in the settlement is used in this way.         

A property, or part of a property, is used as a qualifying petrol filling station if it fulfils the following criteria:

1. petrol or other automotive fuels are sold retail to the general public for fuelling motor vehicles intended or adapted for use on roads, from the premises, and
   
2. No other property, or part of a property, in the settlement is used in this way.         

• If the whole or part of the property is used as a qualifying food store and the property has a rateable value of £7,000 or less, then it can qualify for 50% mandatory rural rate relief from 1 April 2005.
  
  A property, or part of a property, is used as a qualifying food store if a trade or business consisting wholly or mainly of the sale by retail of food for human consumption (excluding confectionery and excluding the supply of food in the course of catering) is carried on there.
  
  The supply of food in the course of catering includes any supply of food for consumption on the premises on which it is supplied, and any supply of hot food for consumption off those premises.
  
• If a rural business has a rateable value of £14,000 or less, then it can qualify for up to 100% discretionary rural rate relief provided the property is used for purposes which benefit the local community, and it would be reasonable for the billing authority to grant discretionary rural rate relief having regard to the interests of its council tax payers.
  
  Those businesses that qualify for 50% mandatory rural rate relief may also be considered for an additional 50% discretionary rural rate relief.

Information about applying for Rural rate relief 

Who pays for the relief?

The National Non-Domestic Rating Pool, into which local authorities pay the Business rates for their locality, meets all the cost of Mandatory rural rate relief.  

Part of the cost of all discretionary rural rate relief is met by the ‘Pool’.   

The rest of the cost is met by the local council tax payers.     

Are there any time limits?

If you meet the requirements for the time concerned then Mandatory rural rate relief can be granted.

Up until 30 September Discretionary rural rate relief can be backdated to the start of the previous financial year i.e. a decision to award relief made on 30 September 2003 can be backdated to 1 April 2002.   

Relief can be granted for a specific period of time, but if it is not then a complete financial year’s notice must be given of any adjustment.

Eligibility for Discretionary rural rate relief

All applications will be considered on their own merits.

Contact name and telephone number

These will help us to contact you if we have a query with your form.

If you have any enquiry about the form please contact us on the following details.

Business Rates Section
Local Taxation Unit
Reigate & Banstead Borough Council
Town Hall
Castlefield Road
Reigate
Surrey
RH2 0SH

Telephone: 01737 276533 or 276691
Fax: 01737 276260
Email: Business.rates@reigate-banstead.gov.uk

What will happen next?

We aim to assess your claim within 10 working days, however if we are unable to do so we will advise you of how much longer it is likely to take.   

Once your claim is assessed we will inform you of the decision in writing.