Mandatory Rate Relief
Mandatory Relief for Charitable Organisations and Registered Community Amateur Sports Clubs (80% of charge)
Legislative requirements (Sections 43 & 45 Local Government Finance Act 1988):
- the ratepayer must be a charity or trustees for a charity or a registered community amateur sports club, and
- the property must be wholly or mainly used for charitable purposes or for the purposes of the club or other registered clubs
- if the property is unoccupied it must appear that when next used it will be wholly or mainly for charitable purposes or for the purposes of the club or other registered clubs.
In the case of Charity shops the property must be wholly or mainly used for the sale of goods donated to the charity and the proceeds (after deduction of expenses) must be applied for the purposes of the charity.
For further information regarding Community Amateur Sports Clubs please go to: www.cascinfo.co.uk
A charity is an institution or other organisation established for charitable purposes only or any persons administering a trust established for charitable purposes only.
Charitable status is usually established by reference to an entry in the register of Charities maintained by the Charity Commissioners under the Charities Act 1960. This evidence is conclusive of an organisation's charitable status. However, the absence of an entry in the register does not necessarily mean that the organisation concerned is not a charity.
Some organisations are excluded from the requirement to register. These "excepted" charities include organisations such as:
- the Church Commissioners and any institution administered by them
- registered societies within the meaning of the Friendly Societies Acts
- units of the Boy Scouts or Girl Guides Associations
- voluntary schools within the meaning of Education Acts
If there is no registration or an organisation is not exempt from registration a decision is made based on the circumstances of each case.
Mandatory Relief for general stores, post offices (from 1 April 2000) & rural food shops (from 15 August 2001)
Legislative requirements (Sections 43(6B) & 47(3B) Local Government Finance Act 1988). To qualify the property must:
- be within the boundaries of a 'qualifying settlement'
- have a rateable value of not more than £8,500 from 1 April 2010
- be used, in whole or part, as a general store or a post office, or both, or a food shop and,
- where a general store or post office, be either the only general store or the only post office in the settlement
The legislation was amended from 5th April 2001 to include properties that are used, in whole or part, as a public house or a petrol filling station, and
- are within the boundaries of a qualifying settlement
- have a rateable value of not more than £12,500 from 1 April 2010, and
- are either the only public house or the only petrol filling station in the settlement.
A 'qualifying' settlement is
- wholly or partly within the Authority's area
- appear to the billing authority to have had a population of 3,000 or less on the preceding 31st December, and
- are wholly or partly within a designated rural area.
A settlement list is compiled and approved by the Council three months prior to each financial year.
A 'qualifying general store' is a business consisting wholly or mainly of the sale of both food for human consumption (excluding confectionery) and general household goods.
A 'qualifying food shop' is defined as one that is wholly or mainly selling food on a retail basis for human consumption. The supply of confectionery and of food in the course of catering is excluded. Catering is defined as the supply of food for consumption on the premises or of hot food that is eaten off the premises. This excludes such establishments as restaurants, cafes, tea-rooms and fast food shops but not food shops that only sell small amounts of such items.
Authority to award Mandatory Relief is delegated to the Head of Revenues.