The term of the BID will be for a period of five years from 1 April 2021.
In its second term Marble Arch London BID will raise approximately £700,000 BID levy in the first year, through a mandatory levy on businesses with a rateable value of £76,001 and above, based on a BID multiplier of 1.400% of rateable values in effect on 31 December 2020.
Properties that come on to 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.
BID levy income will be supplemented by voluntary property owner contributions, taking the annual budget to over £750,000 in the first year of the second term.
With developments nearing completion and new commercial occupiers taking up space, we expect to see BID levy income increase over the course of the term, with a total income and expenditure in the area of more than £4 million over the proposed five year BID lifespan, which will be invested to achieve the BID’s ambitions set out above.
BID Levy Rules
The following arrangements for the BID levy are proposed for Marble Arch London BID:
- The term of the BID will be for a period of five years from 1 April 2021 to 31 March 2026.
- The BID levy will be applied to all hereditaments with a rateable value of £76,001 or more.
- The BID levy will be a fixed rate of 1.400% of the rateable value in effect at 31 December 2020 at the commencement of the BID Term.
- The BID levy will assume a growth rate for inflation of 3% applied on 1 April each year, with the BID Board being able to exercise discretion to set a lower inflation growth rate.
- Properties that come into the rating list during the BID term will be subject to the BID levy from the date the property is listed on the rating list and the relevant rateable value for the property effective from the date listed on the rating list.
- Where a ratepayer receives mandatory charitable relief from business rates, 90% relief from the BID levy will be allowed. Where a ratepayer is not in receipt of mandatory charitable relief from business rates, a 90% reduction in BID levy will be allowed if they occupy an educational type premises as defined by the Valuation Office Agency (VOA) under codes EP or EL.
- Where the rateable value (“the RV”) for a hereditament in respect of a rateable business unit changes, the BID levy due for the hereditament will be recalculated on the amended RV from 1st April of that year or the effective date of the RV change if a later date. This will be known as the closed year rule. The change usually comes into effect from the start of the financial year in which the change is made.
- A small number of businesses within the BID area have exceptionally high rateable values, far in excess of the majority of businesses in the BID area. To ensure they receive a proportionate benefit from the BID, a levy payer will not be charged more than £28,000 per hereditament in year one of the second BID Term, plus indexation for future annual chargeable periods under the second BID Term.
- Where businesses share a common brand or operating name (whether branding is common or shared will be determined by the BID Board) with other levy payers in the Marble Arch BID area, together they will not be charged more than £30,000 in year one of the second BID Term, plus indexation in future annual chargeable periods under the second BID Term. This shared cap amount will be apportioned to reflect the levy which would have been due prior to the cap granted on each of their hereditaments.
- The BID arrangements in respect of these BID levy rules cannot be altered during the BID Term without a full Alteration Ballot
- BID levy is payable on empty properties but excluding listed buildings, from the property owner and there is no void period or any empty allowance.
- There will be no VAT charged on the BID levy.
"The BID has connected us with the community and kept us firmly at the table with our business neighbours."
Amrit Hira, Barclays, Edgware Road