Mandatory charitable relief
Charities in occupation of a property are entitled to 80% mandatory relief from their business rates bill, providing the property is used wholly or mainly for charitable purposes. This leaves a liability of 20% of the charge. Relief up to the remaining 20% may be applied for under the discretionary scheme.
Relief can also be awarded against any unoccupied property rates providing that the ratepayer is a charity and it appears that, when next in use, the property will be wholly or mainly used for charity purposes.
Who qualifies
Registration with the Charities Commission under the Charities Act 1993 is conclusive evidence that an organisation is a charity.
Certain bodies that, under the 1993 act, are excepted from registration, or are exempt charities, are also eligible for mandatory relief, as well as sporting organisations that are registered as Community Amateur Sport Clubs (CASCs).
If the organisation is not a registered charity, you would have to include documentary evidence such as the memorandum and articles of association to show that its main objectives are charitable.
Relief will be at 80% of the rates charged and will continue from year to year, or until such time as the property ceases to be used for charitable purposes. Charity shops are deemed to be wholly or mainly being used for charitable purposes if they are wholly or mainly used for the sale of goods donated to a charity and the proceeds of the sale of the goods are applied for the purposes of the charity.
Use the form below to apply for mandatory charitable relief if the organisation is a registered charity:
Mandatory relief
If the organisation is not a registered charity, use the form below to apply for mandatory relief:
Definition of a charity
A charity is an institution or other organisation established for charitable purposes only, or any persons administering a trust for charitable purposes only. Most charities will be registered with the Charity Commission.
The following organisations are exempt from registration:
- The Church Commissioners and any institution administered by them;
- Any registered society within the meaning of the Friendly Society Acts 1896-1974;
- Boy Scouts and Girl Guides Associations;
- Voluntary schools within the meaning of the Education Acts 1944-1980 and having no permanent endowment other than the school premises.
A charity shop will be entitled to mandatory relief if:
- It is wholly or mainly used for the sale of goods to the charity; and
- If the proceeds of the sale of the goods are used for the purposes of the charity.
Discretionary charitable relief
This relief can be applied to both occupied and unoccupied liabilities. In order for discretionary relief to be applied, any of the following conditions must be satisfied:
- The ratepayer is a charity or trustees for a charity and the property is wholly or mainly used for charitable purposes.
- The property is occupied by organisations which are not established or conducted 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; or
- It is wholly or mainly used for recreation, and all or part of it is occupied by a club, society or other organisation not established or conducted for profit.
Refusal to grant relief cannot be challenged at a liability order hearing at Magistrates Court. The only recourse against a failed application is for Judicial Review at the High Court.
The Council’s Charity and Not-for-Profit Discretionary Rate Relief policy covers discretionary rate relief under which:
- Up to 20% relief can be awarded to registered charities and registered sports clubs that qualify for mandatory charity rate relief.
- Up to 100% relief can be awarded to organisations that do not qualify for mandatory relief, but who meet the eligibility criteria stipulated in this policy.
Community amateur sports club relief
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club, and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).
The Council has discretion to give further relief on the remaining bill.
Private schools
From 1 April 2025 all private schools which would have previously been entitled to mandatory relief (either as a charity or charitable organisation) will no longer be entitled to mandatory relief. The Non-Domestic Rating (Multipliers and Private Schools Act 2025) will end relief eligibility for private schools.
For the purposes of this change the definition of ‘private school’ is an educational establishment that provides compulsory full-time education where a fee or other consideration is payable.
Private schools which are ‘wholly or mainly’ concerned with providing full time education to pupils with an Education, Health and Care plan will remain eligible for relief.