If you have received a charitable rate relief review letter recently, please complete the online form to apply for charity and CASCs relief.
Charitable rate relief is available where registered charities and CASCs are making substantial use of a property for the purposes set out in their charitable objects.
If you are a registered charity you will be entitled to the mandatory relief of 80% providing you are making substantial use of the property for the purposes set out in your charitable purposes.
In addition discretionary relief can be awarded to charities and CASCs as a “top up” to mandatory relief.
You must apply for charitable rate relief:
Mandatory relief is a reduction in the non-domestic rates charged for a business property that is occupied by a charity or trustees for a charity and is wholly or mainly used for charitable purposes, or by a CASC. A reduction of 80% will be awarded where the qualifying criteria is met. Where the property is empty and it appears that when next in use, the property will be wholly or mainly used for charitable purposes, mandatory relief will be awarded.
Many charities will be registered with the Charity Commission; however an organisation does not need to be a registered charity to qualify for mandatory relief. Any sports club that is registered with HMRC as a CASC will be entitled to 80% mandatory relief.
The ratepayers of charity shops will be entitled to mandatory relief where the shop is wholly or mainly used for the sale of goods which are donated to the charity and the proceeds from the sale of those goods are used for charitable purposes.
Discretionary relief is a reduction in the non-domestic rates charged for a business property that is occupied by a charity or other non-profit making organisations and it is given entirely at the discretion of the Council.
Discretionary relief can be awarded to charities and CASCs as a “top up” to mandatory relief that has already been granted for up to a further 20% of their liability, reducing the rates payable to nil. Discretionary relief can also be awarded to other non-profit making organisations for up to a maximum of 50% of the rates payable.
Where relief is granted, it will be awarded for a maximum period of 3 years but any changes in circumstance must be notified to the Council immediately during the award period so that the award can be reviewed.
Discretionary rate relief is not normally awarded in the following circumstances:
- for properties which support overseas organisations
- to housing associations or similar
- to schools or other educational establishments
- to religious, faith or ethically based groups.
The following factors are considered when deciding whether to award discretionary rate relief:
Impact on the local community
- Is membership open to all sections of the community within the Borough?
- Are membership fees at a level that would exclude certain members of the community?
- Are existing members mainly resident within the Telford & Wrekin Borough?
- How and to what extent does the organisation directly benefit the residents of the Borough?
- Are vulnerable or minority groups actively encouraged to join or participate in the group?
- Are facilities provided that allow the Council to invest in services elsewhere?
- Does the organisation provide facilities which would not otherwise be available in the local area? Are the facilities partly funded by the Council?
- Does the organisation provide education, training or learning to its members and nonmembers?
- Are facilities made available to other groups or individuals who are not members?
- Do the premises include a bar and if so, what proportion of the overall income of the group is attributable to the sale of food and drink?
Applications will be considered favourably where the main aims and objectives are specifically one of the following:
- charities concerned with children and young people
- charities or non-profit organisations addressing homelessness
- charities or non-profit organisations concerned with the arts and culture
- charities or non-profit organisations that provide independent money advice free of charge
- charities or non-profit organisations that provide work experience opportunities or employment training for young people, long term unemployed people or those with disabilities.
- charities or non-profit organisations that run or maintain public halls and community centres.
Please note this additional relief is awarded at the discretion of the council and, as it is not fully funded, the cost must be met in part by the council and its council tax payers.
Last updated: 21/10/2020 10:44