Our Discretionary Rate Relief Scheme

Legislative background

Sections 43 and 45 of the Local Government Finance Act provide that charities or trustees for a charity occupying non domestic property will be entitled to 80% mandatory rate relief.

Section 47 of the Act also provides that discretionary rate relief may be granted where:

• the property concerned is occupied by a charity or trustees for a charity;
• the organisation concerned is occupied by an institution or organisation, which is not established for profit and whose main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science, literature or the fine arts;
• the property is occupied by a sorts or social cub or other organisation for the purposes of recreation.

Who pays for the scheme?

The cost of granting discretionary relief to organisations is met 75% from the NNDR pool and 25% by the local council tax payer. The cost of granting discretionary relief to a registered charity, which is receiving the 80% mandatory relief, is met 25% from the NNDR pool and 75% by the local council tax payer.

Criteria to be met by qualifying occupiers

"The Department of the Environment guidelines on the granting of discretionary rate relief suggest certain criteria which local authorities should consider when deciding if an organisation should be granted relief. The criteria can be summarised as follows:

a) Membership

• Is it open to all sections of the community?
• Is it dependent on a sporting ability, or professional skill?
• Is it dependent on the vote of existing members or the payment of a high membership fee which precludes most people in the community from applying?
• Are particular groups, which the authority consider deserving, encouraged to join?

• Are facilities made available to groups other than members for example schools, public sessions?
• Is education or training made available to members?
• Have the facilities been provided by self help without grant aid?
• What is the balance between playing and on playing members of sports club? The balance will provide an indication of whether the club is sporting or social. The existence of a licensed bar should not preclude a social club from obtaining relief where the aim is to bring people together.
• Does the organisation provide facilities which are used by the community and indirectly relieve the Authority of the need to do so, or enhance and supplement those which it does provide?

• Is the charity, club or organisation actively involved in the local or national development of their interests?"

Levels of relief to be granted

When the Cabinet decides to grant discretionary rate relief the following percentages will apply:

Community implications

Legislation provides for considerable relief to charitable bodies who are liable for Non-Domestic Rates and whilst the granting of discretionary relief may make available more resources from that charitable organisation, it could be seen as creating a hidden advantage with regard to the overheads of the charity compared to businesses who are operating in the same environment. For this reason, the business activities of charities are excluded from discretionary relief, as are their office accommodation, any bars and shops.

Village shops and post offices

There is a national scheme of rate relief available to the only village shop and/or post office in a rural community for shops up to a rateable value of £7,000 and the council has a discretionary scheme for village shops and post offices with a ratable value between £7,000 - £14,000.  Please click here to look at this scheme

Business Rates or National Non-Domestic Rates

Frequently asked questions

Forms and leaflets

Billing

Payments

Recovery action

Hardship Relief Scheme

Village Shops and Post Office Scheme

Key contacts

Help us improve our service

Complaints, comments and suggestions