Commodity watch by policy officer Sarah Morrell
With cost-of-living increases continuing, it is important to consider all available support and ways to reduce expenditure. One such way is considering the rates you pay and possibly the relief you may be eligible for. Many farmers will already be aware that there is a 20 percent discount in the rates on the capital value of a farmhouse. Possibly less known is that fact that more than one home connected to the farm can avail of this discount, for example two or more generations farming together. The district valuer is responsible for determining if a dwelling qualifies as being described as an agricultural property based on the facts that it is occupied in connection with agricultural land and occupied by a person whose primary occupation is the carrying on or directing of agricultural operations on the land.
If the occupier has only one occupation, and that is farming the land connected to the house, then the house is distinguished as an agricultural property. However, if the occupier has another occupation in addition to farming, then it is necessary to establish which occupation is ‘primary’ before deciding whether the house qualifies to be classed as an agricultural property. The determination of what is the primary occupation does not necessarily depend solely on financial returns, but also on which engages the time and attention of the occupier.
In addition to agricultural rate relief, farmers may also be able to avail of Lone Pensioner Allowance and/ or Disabled Person’s Allowance, which could result in a significant discount in the rates they pay on their home. A welcome saving in times of increasing costs.
Lone Pensioners Allowance (LPA)
Ratepayers aged 70 or over who live alone may be entitled to 20 percent discount on their rates. Tenants and homeowners are eligible for LPA. Social security benefits should not be affected because the allowance is not means-tested. To qualify for LPA the person living in the home must be 70 or over and live alone. If you are eligible, you can make an application at any time during the rating year. If you are over 70 but do not live alone, you may be entitled to LPA if you live:
- with a carer who is not your spouse or partner,
- provide care for someone who is not your spouse or partner,
- live with someone who is under the age or 18 or,
- live with someone who has severe mental impairment including your spouse or partner.
Disabled Person’s Allowance
Some ratepayers may be able to get a 25 percent discount in their rates if they’ve suitably changed a property to meet the needs of an adult or child with permanent disabilities who lives in the household. The allowance is 25 percent discount in rates for any household where a person with a disability lives and the property has been adapted internally or has additional facilities added to suit the disabled person's needs.
Now is a good time to think about making applications to have the relief applied in time for rates bills issued in April 2023. To apply for any of the mentioned rates relief, visit www.nidirect.gov.uk to download forms.
