A National Non-Domestic Rate is charged on most non-domestic properties. The amount payable is calculated by multiplying the rateable value (set by the Valuation Office Agency, a part of the Inland Revenue) with a national multiplier (which is increased each year in accordance with the retail price index). Local authorities are responsible for the collection of rates and payment of this income into the national non-domestic pool maintained by the Government.

The Local Authority has a legal duty to award Mandatory Relief where relevant criteria are met. A Local Authority is also empowered to reduce the amount payable if the ratepayer is entitled to / granted one or more of the following:

• Charitable (or other Non Profit Making) Organisation Relief
• Hardship Relief
• Part Occupied Relief
• Rural Shop Relief
• Small Business Relief

This policy covers Mandatory and Charitable Discretionary Relief. These organisations may also be eligible for Hardship or Part-Occupied Relief as well. Separate Guidance is available on the criteria and application for the other types of relief referred to above.

The policy has been agreed by the Council to ensure that all ratepayers making applications for relief are treated in a fair, consistent and equal manner. It seeks to safeguard the interests of local taxpayers by ensuring that funds allocated for discretionary relief are used in the most effective and economically efficient way.

Mandatory relief

Local Authorities have a duty to award 80% Mandatory Relief providing the relevant conditions are satisfied. There is no discretion and compliance with the legislation is paramount.

Charities and other non profit making organisations

Where a property is occupied by a charity or trustees for a charity, and it is used wholly or mainly (over half of the time or half of the property) for charitable purposes (whether of that charity solely, or of that and other charities), the ratepayers will qualify for a Mandatory Allowance of 80%, and therefore the rate liability will be 20% of the full rate.

Where the owner of an unoccupied property is a charity or trustees for a charity, and it appears that "when next in use" the property will be wholly or mainly used for charitable purposes (whether of that charity, or of that and other charities), the ratepayers will qualify for 100% exemption from empty property rates.

A "CHARITY" is defined as:

"an institution or other organisation established for charitable purposes only, or any persons administering a trust established for charitable purposes only".

There are a number of sources that can be used to confirm "charitable status", the most common is by reference to:

The Register of Charities maintained by the Charity Commissioners under Section 4 Charities Act 1960, and an entry in this register is conclusive proof that an organisation is a charity.

Absence from the register does not mean an organisation has not been established for charitable purposes as certain organisations are exempt from registration.

These are:

• the Church Commissioners;
• units of the Boy Scouts or Girl Guides;
• any registered society within the meaning of the Friendly Societies Act 1896 - 1974;
• voluntary schools within the meaning of the Education Act 1944 - 1980.

If neither of the above are applicable, the determination of whether an organisation has been established for charitable purposes may be difficult.

However, four general principles have been established through case law:

• that it should be a trust for the relief of poverty; or,
• a trust for the advancement of religion; or,
• a trust for the advancement of education; or,
• a trust for other purposes that is beneficial to the community.

And these may be used to consider an organisations application where no other evidence is available.

Charity shops

Charity shops are entitled to Mandatory Relief if they use the premises:

• wholly or mainly (**) for the sale of goods donated to the charity; and,
• the net proceeds of the sale of goods are applied to the purpose of the charity.

**There is no definition of "wholly or mainly" and therefore its interpretation in the literal sense must be on the basis of "more than half". This should be demonstrated based on floor area, volume of sales or value of sales. The net sales income from donated goods must exceed sales income from bought in goods to satisfy the term "mainly".

Relief is given at 80 per cent of the bill, with the occupant’s rate liability being the residual 20%. In certain circumstances the authority may exercise discretion and award further relief as outlined below in the Discretionary Relief Section.

Registered community amateur sports clubs (CASCs)

Registered CASCs also qualify for Mandatory Relief on any non domestic property that is wholly or mainly used for the purpose of that club, or that club and of other such registered clubs.

Relief is given at 80 per cent of the bill, with the occupants’ rate liability being the residual 20%. In certain circumstances the authority may exercise discretion and award further relief as outlined below in the Discretionary Relief Section.

Applications for relief

Applications for Mandatory Relief are to be made in writing to the Revenues Manager. Forms are available on the website, by telephoning or writing to this Council. Such applications need only be made once, unless the circumstances of the organisation change.

There is also no effective date from when relief can commence so relief awards can be retrospective.

Local councils have discretion to give further relief on the remaining bill for the 3 types of organisation above, qualifying for Mandatory Rate Relief. In certain circumstances the authority may exercise such discretion and award further relief as outlined below in the Discretionary Relief Section. Where such discretionary relief is not awarded, the organisation is responsible for the residual 20% rate liability.

Appeals against refusal to grant relief

Appeal against refusal to grant relief is to the magistrates court at a liability order hearing.

Discretionary Relief (Charities and Non Profit Making Organisations) Authorities have discretionary powers to grant relief to organisations to a maximum of 100% of the rate liability.

This Council believes that organisations should be encouraged to be financially independent and encouraged to look to other areas and initiatives for support rather than being reliant on this Council, whereby 25% of the cost of any discretionary relief awarded falls on the local Council Tax Payer.

Applications for discretionary relief are welcomed from organisations provided that the property is not an excepted property (for example, occupied by a local authority).

All or part of the property must be occupied by one or more organisations which are not established or conducted for profit. Their aims should be charitable or otherwise philanthropic, or concerned with the promotion of social welfare, education, science, literature or the arts.

Discretionary relief may also be granted where the property is wholly or mainly used for the purpose of recreation and all or part of the property is occupied for the purpose of a club, society or other organisation not established or conducted for profit.

Applications for discretionary relief

The cost to the local taxpayer of funding discretionary relief is greater than that for 20% top up relief. Therefore, to minimise the cost to local taxpayers, organisations must endeavour to qualify for such relief before the Council will consider an application for Discretionary Relief.

Applications must be made by the ratepayer. Where the ratepayer is an organisation the application must be made by a person with the authority to act on behalf of the organisation. The Council may ask for evidence of this.

Applications for Discretionary Rate Relief are to be made by completing the application form. This, plus the supporting documentation should be returned to the council’s Finance department.

Applications must be submitted within 6 months of the closure of the year to which the application relates.

Relief will only be granted for a maximum of one financial year at a time and a fresh application is required each year together with updated accounts. This ensures a consistent approach is applied and assistance is targeted towards those most in need.

On receipt of an application, Finance will assess whether it meets the legal criteria to be eligible for assistance. Where the application does not meet those requirements it cannot be considered and the applicant will be notified in writing accordingly.

Where the application does meet the minimum legal criteria, Finance will make a decision as to what level of relief, if any, should be applied using this policy as a guide. The applicant will be notified in writing of this decision.

Financial criteria

When assessing whether to award discretionary relief, the council must consider the importance of the organisation to the local community. Would its absence have a detrimental effect on the lives of the community?

Three years accounts are required to support each application, the figures used to determine the application will generally be an average of the last three years to establish the overall financial stability of the organisation. If you are reapplying for the relief, you only need to send in your most recent years accounts as we will have previous years on our files.

Failure to provide such or failure to agree suitable alternative arrangements with the Head of Finance will result in the application being deferred for 30 working days, after which the application will be deemed to be withdrawn if the required information has not been received or satisfactory alternative arrangements made. Accounts must be specific to the organisation’s operations within Warwick District as it is the local benefit that is being assessed. Group accounts from organisations that cover only areas outside Warwick District will not be accepted. A separate breakdown of local income and expenditure with a local balance sheet should be provided.

A fresh application is required each year, together with the most recent, updated accounts to consider future applications, this ensures a consistent approach is applied and assistance is targeted towards those most in need.

The accounts are one of the key factors taken into consideration and information will be drawn from the audited balance sheet provided in support of applications. The level of Reserves in proportion to the total Rate Liability, grant funding and surpluses will be taken into consideration.

The Council is keen to see how clubs or organisations are trying to help themselves and be self-sufficient wherever possible. Whilst income can be received by external grants from other bodies such as the lottery or another public sector body, charging subscriptions and running fundraising events can also raise income.

It is recognised that charitable/nonprofit making organisations are likely to have more restricted budgets than commercial operations. Many will occupy premises

with lower Rateable Values (R.V.), recognising the need to keep operational costs to a minimum.

Membership

When assessing whether to award discretionary relief, the council must consider the importance of the organisation to the local community. For example, factors that may be considered are;

• Would the organisation’s absence have a detrimental effect on the lives of the community?
• Does the organisation provide a benefit to the local community?

Whilst the Council accepts that clubs and organisations provide a valuable leisure facility, it must be remembered that any relief granted is partially paid for by the Council Tax payers in Warwick District. As such, consideration will be given to the ratio of members within the organisation who reside in the District to the overall membership.

Organisations unable to demonstrate a benefit to the local community will not be considered for such relief.

Policies and objectives

This Council has an Equalities Policy and applications from organisations which make their facilities available to all across the district, regardless of gender, race, sexual orientation and religion will be considered favourably.

Organisations within the District are encouraged to have an active Youth Development Policy, Equalities Policy and provide their facilities for use by disabled people or special interest groups, and provide coaching/workshops/training and/or their facilities free of charge or at reduced rates to these groups. The Council also wishes to see facilities provided that complement its own or that the Council does not provide. All this will contribute to providing opportunity and access to encourage participation by as wide a group as possible.

Copies of these Policies will only need to be submitted once, when we have copies on our file, we can refer to these when considering future applications.

Similarly applications will be assessed according to how the organisations aims and objectives are akin to the Council’s.

The table below outlines the criteria upon which the application will usually be assessed.

Criteria	Indicative weightings
Financial Standing	53%
Membership	20%
Aims and Objectives	27%

Consideration will be given to the financial impact on the Council and the local community when making awards. Relief may be refused or capped if it is considered that the financial cost to the Council or the local community outweighs the benefits likely to be obtained through the award of relief.

The Council will consider applications from organisations, providing a demonstrable local benefit to the local community and award such relief to a maximum of 100% where the property has a R.V. below 5,000. (In the case of organisations already in receipt of Mandatory Relief, the maximum relief would be 20% the residual relief after the 80% has already been taken into consideration). Applications for premises with R.V.s above the threshold will normally be considered for relief to a maximum of 80%. (In the case of organisations already in receipt of Mandatory Relief, these would not be considered for top-up as 80% has already been taken into consideration).

However, there may be occasions where granting relief in excess of 80% to these organisations will be appropriate. For example, where the residual 20% rate liability would jeopardise the future survival of the organisation.

The Council may exercise its discretion to waive this threshold and extend relief beyond 80% in circumstances where the benefit to the community is such that it outweighs the cost to taxpayers. The onus is on the organisation to demonstrate that this is the case. In such cases, an accompanying letter and supporting evidence should be included with the application. Supporting information may also be included.

Appeals against refusal to grant relief

There is no statutory right of appeal against a decision regarding discretionary rate relief.

However, the Council has an internal appeal process whereby an applicant may appeal against the original decision by submitting an appeal in writing to the Deputy Chief Executive within 30 days of the date of the original decision letter. New or additional information may be included but only if it is relevant to the decision making process.

The decision of the Deputy Chief Executive will be final.

Whilst an appeal is outstanding, the amount demanded on the bill issued by the Authority remains due and payable. However, should a ratepayer be successful with their appeal, any overpayment will either be refunded or credited to the ratepayer’s account.