How to Start & Run a B&B BandBED2eBook-1 | Page 34

“protected means of escape” within a building or two or more storeys), it would
be difficult to use their presence as an argument that the premises are not
primarily a dwelling.]
3. Nature of use
Factors such as whether the property is open all year round, serves evening
meals or has a licence are taken into account when deciding if it is a subsidiary
use.
Is my rateable value the same as the rates I will pay?
No. Rateable values are a key factor in the calculation of business rates but they are not
the rates bill. Local authorities are responsible for calculating actual rates bills and for
collecting rates and will use the rateable value in working out how much you have to
pay. The local authority will apply the multiplier, (a rate in the pound), then deduct any
reliefs that are applicable. In England the multiplier is set by the Department for
Communities and Local Government and in Wales the multiplier is set by the Welsh
Assembly Government.
The local authority will also work out any transitional adjustment. The transitional
adjustment limits the amount by which your rates bill changes following a revaluation.
There is no transitional relief in Wales.
From what date will the Bed & Breakfast property be rated?
Generally, a property will be entered in the rating list with effect from the date that it
becomes available for use as a Bed and Breakfast. This date is known as the ‘Effective
Date’.
Can I appeal against the rating assessment?
Yes. You can appeal against both the rateable value and the Effective Date – this is
known as making a ‘proposal’ to alter the rating list.
If you have had an entry in the 2010 rating list from 1 April 2010 you can make a single
appeal against the original entry in this list at any time up until 31 March 2015. If it is a
new entry into the rating list, or the entry has been altered since 1 April 2010, you will be
served a notice by the Valuation Officer, against which you can make one appeal.
If at any time, a material change of circumstances affecting the property or its physical
locality takes place, you are entitled to make a further appeal.
Proposals in response to a list alteration or a new entry in the 2010 list may be made up
to 31 March 2015. The Effective Date of an alteration to the rating list in response to a
ratepayer’s appeal may be subject to certain limitations. For more information contact
your local Valuation Office.
You can obtain a proposal form from your local Valuation Office or you can make an
appeal online from the VOA’s web site at: www.voa.gov.uk.
Homes are liable to Council Tax and businesses for Business Rates. The regulations
“are intended to ensure that [B&Bs]…will continue to be domestic property (and
therefore not rateable) if: (a) it is intended that within the coming year the short stay
accommodation will not be provided for more than six persons simultaneously; and (b)
the proprietor intends to have his or her sole or main residence within the [property]
and the short stay use will be subsidiary to the use of the [property] as the proprietor's
sole or main residence”. The regulations also say “each case will need to be judged on
its merits. The emphasis must be placed on the use of the premises, whereas mere
registration with the local tourist bureau would not be sufficient. It should be borne in
mind that the intention of the ‘subsidiary use test’ is to ensure, as far as possible, that
whilst the provision of limited short stay accommodation in a person's own home will
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