The new categories of discretionary relief were announced by the government in December, among measures to assist businesses.
Although the measures are discretionary, they are in line with the council’s priorities of growing the economy and tourism – and supporting Island businesses where it can.
A report to the council’s Executive on 8 April is, therefore, recommending the adoption of a policy for the new retail reliefs to be awarded – and to minimise red tape for businesses the council plans to identify qualifying businesses and grant retail relief automatically, without the need for an application form.
The new reliefs are as follows:
- Retail relief (from 1 April 2014) – A temporary measure for retail properties with a rateable value of £50,000 or less that are wholly or mainly used as a shop, restaurant, café or drinking establishment. This will be for 2014/2015 and 2015/2016 and will take the form of an annual amount of £1,000 or less, in each year.
- New build empty property relief (from October 2013) – A temporary relief of 100 per cent relating to all unoccupied non-domestic properties that wholly or mainly comprise new structures completed after 1 October 2013 and before 30 September 2016, and that meet qualifying criteria.
- Reoccupation relief (from 1 April 2014 to 31 Mar 2016) – A measure providing 50 per cent discount for new occupants of previously empty retail premises for a period of 18 months. Properties must have been empty for 12 months or more immediately before their reoccupation.
Council managing director, Dave Burbage, said: “If approved by the Executive, this policy – arising out of a government measure – should provide valuable help for businesses including shops, restaurants and cafes. The measures are also intended to reduce disincentives to constructing new business premises, and to encourage the use of unoccupied premises.
“We hope that through the council taking the lead in identifying the businesses which qualify, via our business rates records, it will ensure these reliefs are awarded without the need for form filling, although we understand clarification may be required in some cases.”
For more information on the new reliefs, businesses can visit: (www.iwight.com/revsandbens and selecting Business Rates Reductions) or contact the council’s business rates section on Business.rates@iow.gov.uk or Tel: 823920.
These additional reliefs are separate to the temporary business rate relief measures announced by the government in relation to flooding.
