National non-domestic rates (NNDR) discretionary rate relief policy - rate relief for businesses

Legislation

Discretionary rate relief (charities and non-profit organisations)

Section 47 of the Local Government Finance Act 1988 provides local authorities with a discretionary power to award rates relief to organisations that are liable to pay non domestic rates.

In order that an application may be considered the following conditions must be met:

  • the ratepayer is a charity or trustees for a charity and the hereditament is used wholly or mainly for charitable purposes or
  • the hereditament is not an excepted hereditament (defined by section 47 of the Local Government Finance Act 1988 as a hereditament where all or part of it is occupied (other than as a trustee) by a billing authority, or a precepting authority (other than the Receiver for the Metropolitan Police or the charter trustees or a functional body within the meaning of the Greater London Authority Act 1999) and all or part of it is occupied for the purposes of one or more institutions or other organisations none of which is established or conducted for profit and each of whose main objects are charitable or otherwise philanthropic or religious or concerned with education social welfare, science, literature or the fine arts or
  • the hereditament is not an excepted hereditament and it is used wholly or mainly for the purposes of recreation and all or part of it is occupied for the purpose of a club, society or other organisation not established or conducted for profit

Discretionary rural rate relief

Section 47 of the Local Government Finance Act 1988 allows local authorities discretionary power to award up to 50% discretionary relief in respect of any property which qualifies for mandatory rural settlement relief.

In order to apply, the following criteria must be met:

  • the property must be located in a qualifying rural settlement
  • the rateable value of the property must not exceed £16,500 at the start of the relevant rating year
  • the property is occupied by a business that benefits the local community
  • it is reasonable for us to grant relief having regard to the interests of the council tax payers of the borough

Partly-occupied properties relief

Section 44a of the Local Government Finance Act 1988 allows local authorities to grant relief on a hereditament that is partly unoccupied or not fully occupied as long as the situation exists for a short time only. Each case will be considered on its merits.

Granting of this relief is entirely under our discretion nd will only be granted if it is reasonable for us to grant relief having regard to the interests of the council tax payers of the borough.

Hardship relief

Section 49 of the Local Government Finance Act 1988 allows local authorities power to reduce or remit the amount a person is liable to pay where it is satisfied that:

  • the ratepayer would sustain hardship if the authority did not do so
  • it is reasonable for the authority to do so having regard to the interests of the council tax payers of the borough

Relief under the Localism Act

The Localism Act 2011 allows local authorities to grant local business rates discounts.