Canterbury Bid

The BID Levy Rules

Canterbury BID is an independent, business-led not-for-profit initiative voted for by the businesses of Canterbury in July 2014 and again in July 2019 for another five-year term. There are over 320 BIDs across the UK and they are all funded by a levy on the businesses in the BID area. The money is invested in the projects and activities voted on in the ballot and the BID exists to represent you.

Your BID levy is billed annually in October and just under £500,000 is collected each year to enable delivery of the Business Plan.

The following rules must be read in conjunction with the Business Improvement Districts (England) Regulations 2004 and Part 4 of the Local Government Act 2003. The term of the BID will be five years from 13 October 2019 to 12 October 2024.

1. Hereditaments subject to the BID levy:

1.1. All Non-Domestic ratepayers will be subject to an annual BID Levy in respect of a hereditament if, on the 1 October in the year of the collection of the levy, the hereditament is in the defined Canterbury BID area and is in the rating list on that day for the Canterbury billing authority.
1.2. All new hereditaments entering the Rating List after 1 October 2019 will be levied at the rates listed below in rule 2 at the start of each chargeable year.

2. The BID levy: The annual BID levy will be calculated as rateable value (RV) x BID multiplier and will be fixed as at 13 October 2019 based on the 2017 Rating List (subject to inflationary adjustments in rule 2.4):

2.1. 1.1% of the RV for Whitefriars shopping centre tenants that are liable for a full service charge.
2.2 1.4% of RV for Whitefriars shopping centre tenants that are liable for a partial service charge.
2.3 1.6% of RV on all other hereditaments except those listed above.
2.4 Non-retail charities will receive 80% relief on the BID levy.
2.5  Non-income generating public toilets and communication stations will not be charged a BID levy.
2.6 
A threshold of £1,700 rateable value will be applied, exempting any business hereditament within the defined BID area falling below this rateable value.
2.7
The BID levy is projected to increase by an annual discretionary inflationary factor of up to 2% ie. up from 1.6% multiplier to 1.62% in year 2 and so on).
2.8  VAT will not be charged on the BID levy.
2.9
The BID will not take into account any changes to the ratings regime during its five year term.
2.10. The BID levy will not be affected by small business rates relief or any other discretionary relief grant.

3. Collection of the BID levy:  

3.1  The levy will be charged annually in advance for each chargeable period from October to September, starting on 1 October 2019 utilising the prevailing values on the 2017 Rating List.
3.2
  The levy is an annual charge payable in advance as a single payment and no refunds will be made on the BID levy.
3.3
Any adjustments to the rateable values will only be applied to the BID levy at the fixed date of the subsequent chargeable year but will remain on the 2017 Rating List for the term of the BID.
3.4 
The levy will be on a Chargeable Day basis and due as a single annual payment in October. If a hereditament changes tenant during the course of a year no refund will be paid to the departing tenant who will have to seek an accommodation or otherwise with the new tenant.
3.5 Where a property is subject to change of use from business to residential then the levy will cease in the year after which the change takes place. No refund or part levy will be payable in this instance.
3.6 The levy will be payable in one instalment collected by Canterbury City Council and is payable within 14 days. Collection and enforcement of the BID levy will be similar to those applied to business rates.

4. Persons / Organisations Liable for the BID levy:

4.1 Liability for the BID Levy will be the responsibility of the ratepayer of the hereditament on 1 October in the year of the collection of the levy.
4.2 In the case of an empty or untenanted premises, the property owner (the subsequent eligible ratepayer) will be liable for the BID levy with no void period, and will be entitled to vote in the BID ballot. For this purpose the owner is the person entitled to possession under section 65(1) of the Local Government Finance Act 1988.