Local government finance circular 4/2024: Green Freeports Non-Domestic Rates relief and income retention

Glossary

Baseline Income – total amount of NDR income payable for all properties within the delineated area, or developments commenced within the delineated area, as at the day before the tax site is designated. This is adjusted each year (rates, property changes, etc.).

Updated Baseline – total amount of NDR income payable for the year, for all baseline properties, updated to take into account changes to the non-domestic rates and other adjustments.

GF Income – total amount of NDR income payable for all properties in the GF delineated area, less any amount for displacement, arising as a result of the operation of the GF, derived from NDR paid on new buildings, extension/improvements of existing buildings, and existing buildings which have been rebuild as set out above.

Net GF Income – Net NDR income payable (income after reliefs except GF relief awards or BGA relief awards where the property was also eligible for GF relief; and including prior year adjustments).

Demolitions – Any property that is demolished, and therefore removed from the valuation roll.

Pre-Demolition Net Income –  gross NDR income payable for a property when demolished, net of the minimum relief percentage awarded to the property in the three years prior to demolition (provided this was for a period of six months or more), and adjusted for the property rate for the relevant year.

Demolitions re-built (re-builds) – Properties within the delineated area that are built following demolition (after tax site designation) of an existing baseline property.

Displacement – adjustment for relocation of properties from outside, to within the GF delineated area. It is based on an agreed displacement factor which is applied to the GF NDR income with in the GF area.

Displacement Factor – percentage as agreed within the GF agreement, to adjust for relocation of properties from outside, the delineated area.

Displacement Adjustment – Amount of income to be subtracted from GF Revenue for displacement. It equals the displacement factor * New GF NDR income.

Extensions/Improvements – Any existing property within the GF area that have been extended (after tax site designation), where the extension results in additional floor space and an increase in the rateable value of the property.

Relevant Year – each period from 1 April in any one year until 31 March in the immediately succeeding year (i.e. the financial year rates are collected for).