THE BID LEVY
Each hereditament (individual property liable to pay business rates) is required to pay an annual levy equivalent to 1.5% of their rateable value. The BID term will run from 1 June 2021 to 31st October 2025.; for the BID to continue, another ballot would be required.
Businesses with a rateable value of under £25k will not pay. Businesses receiving charitable mandatory relief from business rates (for example schools, charities and churches) are not required to pay the levy.
There is a cap on the annual levy for any single hereditament set at £20,000.
All eligible businesses are required by law to pay the levy, irrespective of how the voted.
Businesses on managed estates which pay a service charge to cover the provision of services relating to an outdoor managed area are entitled to a discount and will pay a BID levy of 0.75% of the rateable value.
First estimates suggest that over £4m will be raised over the four and half year BID term.