rate relief

Mandatory - Where a property is occupied by a charity and is used for charitable purposes then mandatory rate relief can be applied for. If granted this will be 80% of the full charge, leaving the charity with the remaining 20% to pay.

In the case of an unoccupied property, where the ratepayer is a charity and it appears that when next occupied the property will be used for charitable purposes then mandatory rate relief can be applied for. If granted this will be 80% of the empty charge, leaving the charity with the remaining 20% to pay.

Discretionary - In addition to the mandatory relief described above, the Council may grant discretionary relief in the following circumstances:
Where the 80% mandatory relief has been granted -
and the property is used for charitable purposes the Council may remit all or part of the remaining 20% of a charity's bill.
Where mandatory relief has not been granted -

An organisation that is not a registered charity may also claim relief, provided it is not established or conducted for profit and has a similar charitable status. The Council has the discretion to remit all or part of any rate bill in respect of a property occupied by such bodies.


RATE RELIEF FOR CHARITIES AND NON-PROFIT MAKING ORGANISATIONS

MANDATORY - Where a property is occupied by a charity and is used for charitable purposes then mandatory rate relief can be applied for. If granted this will be 80% of the full charge, leaving the charity with the remaining 20% to pay.

In the case of an unoccupied property, where the ratepayer is a charity and it appears that when next occupied the property will be used for charitable purposes then mandatory rate relief can be applied for. If granted this will be 80% of the empty charge, leaving the charity with the remaining 20% to pay.

DISCRETIONARY - In addition to the mandatory relief described above, the Council may grant discretionary relief in the following circumstances:
Where the 80% mandatory relief has been granted -
and the property is used for charitable purposes the Council may remit all or part of the remaining 20% of a charity's bill.
Where mandatory relief has not been granted -

An organisation that is not a registered charity may also claim relief, provided it is not established or conducted for profit and has a similar charitable status. The Council has the discretion to remit all or part of any rate bill in respect of a property occupied by such bodies.

 

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RATE RELIEF FOR CHARITIES AND NON-PROFIT MAKING ORGANISATIONS

If you are suffering severe hardship and cannot pay your bill, your local authority may give you up to 100% relief, on a discretionary basis. It would normally only do this in extreme cases of hardship and for businesses that are particularly important to the local community. It would need to be satisfied that you would suffer hardship if the relief was not granted and takes account of the fact that local council tax payers will be paying part of the cost of the relief..

Who is eligible for hardship relief?

All ratepayers are able to apply for hardship relief however relief will only be granted if;

  • the ratepayer would sustain hardship if the council did not award relief, and
  • it is reasonable for the council to award relief having regard to the interests of its council tax payers.

 

What is Hardship?

There is no statutory definition of hardship. The dictionary says it is a “condition of life difficult to endure” or “something that causes suffering or deprivation”.

How can I apply?

Due to the nature of hardship councils assess each application on an individual basis, therefore any application should be made in writing stating the reason why relief is sought, the effect that a failure to award relief may have and the impact that a failure to award relief would have on the local community.

You will also be required to provide financial information to support your application. This will include both business and personal accounts.

 

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RATE RELIEF IN RURAL SETTLEMENTS

Rural village of population under 3000
You are entitled to a 50% reduction in the rates bill – or more if your local authority feels you need it – if you are:

  • the only village general store or post office, with a rateable value of less than £7,000
  • a food shop with a rateable value of less than £7,000
  • the only village pub or the only petrol station (rateable value of less than £10,500)

 

If you are a business in a qualifying rural village with a rateable value of less than £14,000 your local authority may decide to give you 100% relief if your business is of benefit to the local community. The decision rests with the local authority.

 

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SMALL BUSINESS RATE RELIEF

This is a new relief available from 1 April 2005.

Eligible businesses with rateable values of below £5,000 will get 50% rate relief on their liability. This relief will decrease on a sliding scale of 1% for every £100 of rateable value over £5,000, up to £9,999.

The relief is available to ratepayers with either:

  • one property, or
  • one main property and other additional properties, providing the additional properties do not have individual rateable values of more than £2,200, and the combined rateable value of all the properties is under £15,000 (or £21,500 in London). The threshold for the combined rateable value is dependent on the location of the main property.

In addition to this relief on liability, eligible businesses with rateable values of between £10,000 and £14,999 (or between £10,000 and £21,499 in London) will have their liability calculated using the small business multiplier.

The Small Business Rate Relief scheme will be funded by a supplement on the rate bill of those businesses not eligible for the relief. This supplement is built into the standard multiplier.

Important changes have been made to the Small Business Relief scheme. Under the new arrangements ratepayers will be required to apply for Small Business Relief only once between each revaluation of non-domestic hereditaments provided certain defined circumstances do not change.

These changes are:

  • increases in the rateable value of a property occupied by the ratepayer which is not in the area of the billing authority granting Small Business Relief - these changes will have to be notified in writing; and
  • the ratepayer coming into occupation of any property which is not mentioned in the ratepayers application for relief - these changes will have to be notified through a fresh application for Small Business Relief.

 

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