The income to be derived through the BID levy will be based upon a set of detailed levy rules as follows:
- The term of the BID will be for a period of five years from 1 October 2019 to 30 September 2024.
- All properties or hereditaments with a rateable value of £50,000 or more will be liable for payment of the levy.
- The levy rate to be paid by each property or hereditament is to be calculated as 1.12% of its rateable value as at the ‘chargeable day’ (notionally 1st April each year) using the 2017 ratings list for all eligible levy payers.
- The number of properties or hereditaments liable for the levy is circa 290. New hereditaments will be charged based on the rateable value at the point of occupation.
- From April 2021 onwards, the levy rate will be inflated by 3% year on year – i.e it will rise to 1.15%, then 1.18% etc.
- The levy will be charged in the first instance for the 6 months from 1 October 2019 to 31 March 2020 inclusive. It will then be charged annually in advance for each chargeable period (April to March each year). No refunds will be made.
- The ratepayer for untenanted properties or hereditaments will be liable for payment of the levy.
- Hereditaments within Waterloo Station that are subject to a service charge will receive a 50% discount.
- Hereditaments owned and/or occupied by Guy’s and St Thomas’ NHS Foundation Trust (however so named) will be capped at a maximum of £40,000 per annum.
- Those businesses in receipt of charitable relief on business rates will receive a reduction of 80% on their levy.
- The levy charged to any single hereditament shall not exceed £30,000 (an increase from £20,000 in 2014).
- The total levy paid by any single liable party in each Borough will not exceed £40,000 (an increase from £30,000 in 2014).
- There will be no VAT charged on the BID levy.