Business rates discretionary relief policies

Discretionary (charitable) rate relief policy

The purpose of the these guidelines is to set out the circumstances in which the Authority will exercise its discretion to grant Discretionary Rate Relief.

The aim of the scheme is to support local not for profit organisations making a contribution to the local community through:

community support
voluntary training
provision of sports facilities

Applicants need to demonstrate the contribution the organisation makes to the local community. All applications will be considered on their merits. The following criteria highlight the types of local support that the will be considered favourably:

There are a range of local factors that would support the case for relief. These include:

Local non-profit making organisations that contribute to the local community (including local employment) and local environment (sustainability)
It is beneficial if organisations provide unique facilities that are not offered anywhere else in the County
Membership should be made up of a high percentage of the local community and allow open access to the community (membership fees should be non-restrictive)

The following financial criteria will be taken into account:

is the organisation Non-profit making; are all profits reinvested back into the organisation, without distribution of profits to members?
if bar facilities are provided are bar profits reinvested in the organisation?
does the organisation have a large surplus of funds that are not being accrued for a specific purpose?
new organisations should demonstrate financial viability (for example by providing supporting documentation, such as a business plan)

The Council will consider applications for discretionary rate relief in exceptional circumstances where an organisation can demonstrate that they are making a contribution which is of significant benefit to the County, and are in need of financial support. Examples that could be considered are:

organisations providing services that contribute to Corporate priorities
independent new businesses needing support that move into premises may get relief where they can demonstrate that the business will contribute to regeneration of the area or offering significant local employment in an area of high unemployment
any other local organisation offering local support that is not covered by these guidelines

Relief will be given for a maximum of 3 years, but will be reviewed sooner if the circumstances of the organisation change from when the initial application is made.

Other business rate discretionary relief

Councils have the discretion to award Local Business Rate Relief of up to 100% of the amount due under section 47 of the Local Government Finance Act 1988 (as amended). Relief can be awarded in respect of any circumstances it sees fit, having regard to the effect on the Council Tax payers of its area.

This policy sets out the factors that may be taken into account when applications for local Business Rate discretionary discounts are considered. It also provides the ratepayer with review rights when they are dissatisfied with the decision.

The policy applies to all Business Ratepayers who wish to apply for local discretionary relief.

How to claim discretionary relief

an application must be in writing (or by email) to the Council and be made by the Ratepayer or by someone authorised to act on their behalf
all applications must be supported by sufficient evidence to allow the Council to properly consider the claim. If the Taxpayer refuses to provide the Council with such evidence the application may be treated as incomplete and it will not be processed

How claims will be assessed

The Council will consider awarding a discretionary relief in exceptional circumstances. Each application will be considered on its own merits. The Council may also decide to award relief to certain types of ratepayer. In considering whether to award relief the following will be taken into account:

the general effect on the Council Taxpayers in the area
details as to how the ratepayer believes that relief would be of benefit generally to the area
the financial effect on Council Taxpayers
whether all other eligible Business Rate reductions, discounts, exemptions and reliefs have been considered and, where applicable, claimed and awarded

Notification of decisions and awards

Local Business Rate Discretionary Relief may be awarded for any amount (up to 100% of the charge due), for a specific period, for a fixed amount or for an ongoing period of liability. Where the period is ongoing, the award will be subject to regular review. The ratepayer will be notified of the decision as soon as possible after it has been made and any award will be by means of relief being applied to the relevant Business Rate account.

Review of decision

where the application is refused the ratepayer will be notified that they can ask for the decision to be reviewed. Any request for a review must be made, in writing or by email, within one calendar month of the decision letter
the review will be carried out by a senior officer who was not involved in the original decision with, in exceptional circumstances, the Portfolio holder for Finance. The review will take into consideration any further evidence supplied
the only formal appeal process for the ratepayer is via Judicial Review

Contents

Business rates discretionary relief policies

Discretionary (charitable) rate relief policy

1. Local factors

2. Training

3. Sports facilities

4. Community groups

5. Finances

6. Education facilities

7. Other factors in line with Government guidelines.

8. Other considerations

9. Appeals

Other business rate discretionary relief

How to claim discretionary relief

How claims will be assessed

Notification of decisions and awards

Review of decision

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