Mandatory rate relief
Charities in occupation of a property are entitled to 80% mandatory relief from their rates bill, providing the property is used wholly or mainly for charitable purposes. This leaves a liability of 20% of the charge, although relief up to the remaining 20% may be applied for under the discretionary scheme. Registration with the Charities Commissioners under the Charities Act 1993 is conclusive evidence that an organisation is a charity. Certain bodies which 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 should 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 the property ceases to be used for charitable purposes. Relief can also be afforded 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.
Charity shops are deemed to being wholly or mainly used for charitable purposes if it is 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.
Private schools
From 01 April 2025, Central Government have determined that 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. 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.
The Non-Domestic Rating (Multipliers and Private Schools Act 2025) will end relief eligibility for private schools. This change is intended to take effect from April 2025, subject to Parliamentary process. Private school 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.
Apply for mandatory rate relief
Discretionary rate relief
Organisations which are not charities cannot qualify for mandatory rate relief. However, they may apply for discretionary rate relief, providing they are not established for profit and the property is used either for charitable purposes or other purposes which are for the general wellbeing of the community (i.e. sports, social, religious, educational). This relief is awarded at the discretion of the council and in some circumstances can be up to 100% of the rates payable.
Charities and organisations that qualify for 80% mandatory relief will be eligible to apply, in accordance with the policy and guidance notes below, for discretionary relief up to the remaining 20% of the rates payable.
Any charity or organisation which is awarded discretionary rate relief will be invited to reapply each year and their application will be considered each year together with a set of the latest audited accounts and relief may be continued at the same rate, increased, decreased or removed completely.
Discretionary relief can be afforded against unoccupied property rates providing the conditions are met.
Private Schools
In light of the changes in legislation from 1 April 2025 - Private Schools which would have previously been entitled to mandatory relief (either as a charity or charitable organisation), will no longer be entitled to apply for discretionary relief. 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 school which are ‘wholly or mainly’ concerned with providing full time education to pupils with an Education, Health and Care plan will remain eligible to apply for discretionary relief, so long as the other criteria below are met.