BID Levy

The formation of a BID is enabled by government legislation and regulation.

Definitions in these arrangements are as per The Business Improvement Districts (England) Regulations 2004

This section defines the proposed BID levy rules. Following a successful ballot, the following levy rules will apply. Under the legislation, if the BID is approved, all businesses regardless of how or if they voted will be under an obligation to pay the 1% levy each year for five years.

  1. The term of the BID will run from 1 April 2016 to 31 March 2021, a five-year term.
  2. The financial year of the BID runs from 1 April to 31 March.
  3. The BID levy has been reduced to 1% of the rateable value. To calculate your BID levy simply multiply the business rateable value by 0.01. Contact us if you’d like to find out how to search for your RV.
  4. The BID levy multiplier may be increased in line with RPI, to a maximum of 3%, at the discretion of the BID Board on an annual basis.
  5. The levy will be charged on the rateable value of each hereditament in the 2010 or subsequent Valuation List.

Persons liable to the levy will be any ‘ratepayer’ as set out in Section 59 of the Local Government Act 2003 [ Interpretation of Part 4 ]. Section 59 sets out the meaning by stating “non domestic ratepayer, in relation to any area, means a person subject to a non-domestic rate under Section 43 or 45 of the Local Government Finance Act, 1988 (c.41) (liability to non-domestic rates) because he is the owner or occupier of a hereditament in that area”.

The words business, businesses, ratepayer, levy payer, hereditament are used interchangeably here.  

Liability for the levy will fall on occupier of the hereditament.

  • All businesses with a rateable of £10,000 or more will be levied.

The streets and hereditaments to be included in the BID area may change due to alterations in Ealing Council’s ratings list. Hereditaments may be additionally included if their rateable value at any time during the BID period meets or exceeds £10,000 or they are newly added to the ratings list and the rateable value criteria is met (including any new developments, mergers, refurbished, extended or reconstituted hereditaments). Hereditaments may also be excluded from the BID levy charge in cases where amendments are made to the ratings list and this results in either a removal of hereditaments from the list or an alteration of the rateable value to below £10,000 (including any demolitions or split hereditaments).

  • There will be no VAT charged on the BID levy.
  • Properties that come into the Rating List during the BID term will be subject to the BID levy from the effective date that the property is brought into the rating list and the rateable value effective at that time.

It is important to note that all UK business rateable values will be reassessed in 2017. For newly assessed hereditaments (brought about by for example: challenges, hereditament splits or mergers, or new development) the BID levy will be applied to the rateable values as per those in the 2017 Ratings List or subsequent lists.

  • The BID levy is calculated on a daily charge, invoiced annually.

The levy is collected through the BID’s collection agent Ealing Council and is payable in advance upon service of a Demand Notice.

  1. The BID levy is subject to a closed financial year rule.

The BID levy will reflect rateable value schedules issued by the Valuation Office. However, once the financial year has passed (i.e. 31 March) the BID will not take into account any subsequent rateable value schedules altering the rateable value retrospectively for hereditaments within the area. This will mean no rebate will be given for reductions retrospectively. Likewise, no increases will occur retrospectively once a BID financial year comes to an end.

  1. Educational institutions and those registered with the Department for Education will have a levy multiplier that is 80% reduced.

No other type of relief (small business, industrial relief, historical, etc) will be applied to the BID levy.

  1. Retail units in dedicated shopping centres that operate in Ealing town centre, and who pay a service charge – Ealing Broadway Shopping Centre and Dickens Yard – will have a levy multiplier that is 30% reduced, recognising the additional service charges tenants pay.

Hereditaments in serviced offices will pay the full BID levy.

  1. The BID levy will be chargeable to the property owner where a hereditament becomes vacant.
  2. The BID levy will be chargeable on an unoccupied property without any void period or any empty allowance.

There is no distinction between occupied or unoccupied hereditaments, both are liable for the full BID levy.

BID Levy Rules 2021-26Download