- The purpose of this policy is to determine the level of discretionary relief that can be granted to eligible non-domestic ratepayers within the District.
Objectives
The objectives of this policy are to:
- Offer stability to those organisations receiving relief;
- The award should help and encourage business, charities, organisations, groups and communities to become self reliant;
- Any award should support business, charities , organisations and groups to retain services in the Council’s area and not compete directly with existing businesses in an unfair manner;
- Local organisations will be given priority over national organisations;
- Be equitable and balance the wider interests of the community with the resources made available by the Council Tax payer;
- To enable appropriate organisations to start, develop or continue their activities, which deliver outcomes to the community and that also relate to the priorities of the Council, which without granting discretionary relief they would be unable to do;
- Be clear and transparent;
- Set out, as far as possible, objective criteria rather than subjective judgements for the award of discretionary rate relief;
- Be simple to administer;
- Take account of the Council’s financial priorities;
- Support the delivery of the Council’s Objectives and Priorities;
- The awarding of relief will be in line with the Council’s vision and values;
- Awarding discretionary relief should not distort competition or significantly change the provision of services within the Council’s area;
- Where requested the organisation will need to supply the Council with clear evidence of all financial affairs including, the amounts of monies raised, used and invested locally;
- To assist the Council in delivering services which could not be provided otherwise; and
- To ensure that the financial impact of awarding discretionary business rate relief is justified in terms of the local outcomes achieved by the organisation receiving it.
The Local Government Finance Act 1998 requires local authorities to grant mandatory relief for premises occupied by charities and used wholly or mainly for charitable purposes.
In 2003 (effective from 1 April 2004) this was also extended to include Community Amateur Sports Clubs (CASCs), registered with HMRC.
Mandatory relief for such organisations is funded by the government and gives a recipient an 80% reduction in their business rates.
From the 1 April 2025 the Government have determined that all Private Schools which would previously have been entitled to Mandatory Relief will no longer be entitled.
In addition the mandatory relief, the Head of Finance can make an additional award of 1% up to 20% of the remaining balance of the bill after mandatory relief.
| Who | Level of Relief |
|---|---|
| 1. Charitable bodies entitled to mandatory rate relief of 80% | No additional relief unless there are exceptional circumstances and there is a benefit to the local community |
| 2. Businesses in rural settlements with a Rateable Value of up to £16,500 and not in receipt of mandatory relief. | Up to 100% subject to clear evidence of a benefit to the local community |
| 3. Non-profit making organisations whose main objects are charitable or are otherwise philanthropic, religious or concerned with education, social welfare, science, literature or the fine arts not entitled to mandatory relief | Up to 80% discretionary relief |
| 4. Sports and Social Clubs and Community Centres: | – |
| (a) Community Amateur Sports Clubs (CASC’s) eligible to be a registered club for the purposes of Schedule 18 to the Finance Act 2002 and entitled to mandatory relief of 80% | No additional relief |
| (b) Voluntary sports clubs occupying modest premises which are devoted specifically to the sports or pastimes concerned and are unable to registrar with the Her Majesty’s Revenue & Customs (HMRC)as a Community Amateur Sports Club (CASC) | Up to 80% discretionary relief |
| (c) Clubs with membership rates set at a high level likely to exclude the general public | No relief |
| (d) Clubs with a membership mainly consisting of residents of Wealden District | Up to 80% discretionary relief proportionate to members resident in Wealden District |
| (e) Clubs with a membership mainly consisting of non-residents of Wealden District | No relief |
| (f) Social clubs used mainly for public recreation (Excluding those which incorporate a profitable licensed bar) | Up to 80% discretionary relief |
| (g) Community centres (where a licensed bar, if present, is ancillary only to the primary use of the premises) | Up to 80% discretionary relief |
| 5. Education establishments (schools, academies, colleges, universities etc.) which are not charitable trusts and not entitled to mandatory relief | No relief |
| 6. Charity Shops which are run by registered companies and not entitled to mandatory relief | No relief |
All applications should be made to the Council on the relevant application form, along with supporting evidence such as accounts (normally the last two years), financial statements etc. necessary to allow the Council to make a decision. Ratepayers are encouraged to approach the Council directly and not through third parties. We will only accept applications for relief from ratepayers.
In all cases the Council will notify the ratepayer of the decision made. Where an application has been unsuccessful we will provide an explanation of the decision and an explanation of the appeal process.
Any award will be from the start of the financial year in which the decision is made or when liability begins (whichever is later). It may be necessary to make a fresh application for each subsequent financial year.
Where an award has been made we will require any changes in circumstances that may affect the relief to be reported to us as soon as possible or within 21 days of the change.
When there has been a change of circumstances the relief may be revised or cancelled.
Granting of discretionary rate relief is delegated to the Head of Finance who may decide awards in consultation with the Portfolio Holder. They may delegate this responsibility to the Local Taxation and Benefits Manager.
The Head of Finance / Local Taxation and Benefits Manager will decide each case on its merits, if necessary after consultation the Portfolio Holder. A documented record will be maintained of each award, including the authorisation by the Head of Finance / Local Taxation and Benefits Manager.
Backdated awards may be considered at the discretion of the Head of Finance and may be backdated to the start of the financial year or the date the hereditament became liable for rates in the financial year the application was made, whichever is the later.
Discretionary Relief will be awarded for a specified period not exceeding three years. Revocation of relief will occur automatically on a change of ratepayer. For any other revocation of relief notice will be given at the end of the proceeding financial year that relief will be ended at the end of the next financial year.
A report on all Rate Relief awarded including Discretionary Relief will be made available on the request of the Cabinet Portfolio Holder and/or by Cabinet.
Where we receive an appeal from a ratepayer regarding the granting, non granting or the level of an award, the case will be reviewed by the Head of Customer, Digital, Revenues and Benefits. If the ratepayer is still dissatisfied, the case will be considered by the Council’s S151 officer whose decision on behalf of the Council will be final. The ratepayer will be informed where a decision is upheld or revised.
Ultimately any formal appeal is through judicial review.
The Council is committed to protecting public funds and ensuring funds are awarded to the people who are entitled to them. The ratepayer agrees, on making a claim, that any and all information given may be shared with other public authorities for the purpose of detecting fraud.
Personal information provided to claim reliefs may be shared with fraud prevention agencies to prevent fraud and money laundering, and to verify people’s identity. If fraud is detected, you could be refused certain services, finance or employment. More details can be found on our Investigations webpage
Where a ratepayer provides false information, or deliberately withholds information in order to gain relief, prosecutions will be considered under the Fraud Act 2006.
The Council’s complaints policy and procedure (available on the Council’s website) will be applied in the event of any complaint received about this policy.
This policy will be reviewed every year and updated as appropriate to ensure it remains fit for purpose. A review may take place sooner should there be any significant changes in legislation