Levy Rules explained

Levy Rules explained image
Business Improvement Districts operate within a statutory framework set out in Part 4 of the Local Government Act 2003 and the Business Improvement Districts (England) Regulations 2004.

Under this legislation, the BID levy must be paid by the person liable for non‑domestic rates on the property.

The following framework forms part of the Sheffield City Centre BID Proposal that was put to ballot in October 2025. Following a successful ballot outcome, the term of the BID will run from 1 April 2026 to 31 March 2031.

Levy rate and valuation basis
  • The BID levy is 1.75% of your property’s rateable value (RV), based on the 2023 National Non‑Domestic Rating List.
  • The RV used is the value shown on 1 April each year (“the chargeable day”).
  • New properties are included if their effective date is on or before 1 April.

Annual billing
  • Bills are issued once a year in advance, covering April to March.
  • Billing begins in April 2026.
  • No refunds are given if a property becomes vacant or its occupier changes mid‑year.

National revaluations do not apply
  • Any Government revaluation during the BID term will not change your levy.
  • The BID will continue to use the rateable value from the 2023 ratings list for the duration of the term.
  • This prevents levy increases or decreases caused by later national updates.

 Physical or use‑related changes
  • If your property’s RV changes because of a physical change or change of use (e.g. extension, refurbishment, subdivision, merger, new construction), the new RV applies from the next chargeable period.

Minimum threshold
  • Only properties with an RV of £40,000 or more are liable to pay the levy.

Dropping below the threshold
  • If your RV falls below £40,000 due to physical changes or a change of use, you become exempt from the next chargeable period.

New or upgraded properties becoming liable
  • If a new property enters the ratings list, or an existing property’s RV increases to £40,000+ due to physical changes or change of use, the property becomes liable from the next chargeable period.

Cap per property
  • No single property will pay more than £20,000 per year.

Cap for ratepayers with multiple properties
  • If a ratepayer’s combined levy exceeds £45,000, their total levy is capped at £45,000.  

Annual inflation increase
  • From Year 2 onwards, the levy rate increases by a fixed 3% per year (rounded).

Empty properties
  • Owners of vacant or untenanted properties must still pay the levy if liable for the business rates.

Charities
  • Charitable organisations receiving mandatory rates relief will pay 60% of the standard levy.  

Exempt sectors
The following are exempt from the levy:
  • Properties used primarily for full‑time education of children under 16
  • Properties classed as hospitals
  • Properties classed as hotels

Collection
  • Sheffield City Council is the Billing Authority and has a statutory duty to collect the levy.