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Rate Relief for Charities, registered Sports Clubs & non-profit making organisations

Relief from payment of business rates is given to a wide range of charitable and non-profit making organisations

Registered charities are entitled to relief from rates on any non-domestic property, which is wholly or mainly used for charitable purposes.

Mandatory rate relief is given at 80 per cent of the full rate bill.

Torridge District Council has the discretion to remit all or part of the remaining 20 per cent of the rate bill.

We also have the discretion to remit all or part of any rate bill for property occupied by certain not for profit organisations.

Rate relief for Charities

Under Section 43 of the Local Government Finance Act 1988, property occupied by a registered charity is eligible for 80 per cent mandatory rate relief.  This can be granted without an application form being completed.

Under Section 47 of the Local Government Finance Act 1988 Discretionary Rate Relief may be awarded for up to the remaining 20 per cent of the rates bill. This relief is given at the discretion of the council and a points system is used to assess the level of relief. In this case an application form must be completed.

To qualify for mandatory relief the property must be wholly or mainly used for charitable purposes and the organisation must be established for charitable purposes only, or be occupied by any persons administering a trust established for charitable purposes.

Registration under section three of the Charities Act 1993 is conclusive evidence of charitable status.  Some organisations are not registered as charities, but would be entitled to register under Section 505 of the Income & Corporation Taxes Act 1988.  A confirmation letter from the HM Revenues and Customs will be sufficient proof.

Rate relief for non-profit making organisations and Community Amateur Sports Clubs (CASCs)

If an organisation does not qualify for mandatory rate relief, the council may still consider granting discretionary rate relief of up to 100 per cent of the rate bill.

To be eligible the ratepayer must be a non-profit making body and the property must be used for charitable, philanthropic or religious purposes, or concerned with;

  • education
  • social welfare
  • science
  • literature and fine arts
  • recreation (for example an athletics club or a town band)

Any decision to grant relief will take into account the individual merits of each case.

Organisations which are registered with HMRC as Community Amateur Sports Clubs are entitled to 80 per cent mandatory relief. This can be granted without an application form. Additional relief of up to 20 percent may be granted using our point scoring system. In this case an application form will have to be completed.

To qualify as a CASC a sports club must;

  • be open to the whole community
  • be run as an amateur club
  • be a non-profit making organisation
  • aim to provide facilities for and encourage people to take part in eligible sport

If you are a sports club that has not yet registered as a CASC and would like to know more about the registration process please see pdf icon CASC fact sheet [9kb]

You can find out more information from the HMRC website