S47 Discretionary Rate Relief Framework

Legislation

Section 47 of the Local Government Finance Act 1988 allows Councils to award discretionary relief to ratepayers, provided it is reasonable for the authority to do so, having regard to the interests of its Council Tax payers.

Framework

The Council will consider all requests for a reduction on an individual basis. There are financial implications on local Council Tax payers by awarding Discretionary Relief so the Council must ensure that granting Relief benefits the wider community as well as the ratepayer concerned.

Discretionary Scheme Principles

a) Charitable Organisations

  • Essential Services restricted to: CAB, Samaritans, Hospice
    • Must be registered with the Charities Commission
    • Must qualify for 80% Mandatory Relief
    • Discretionary Relief Top Up of 20%
  • Volunteer led Charities eg unpaid directors/trustees
    • Must be registered with the Charities Commission
    • Must qualify for 80% Mandatory Relief
    • Discretionary Relief Top Up of 10%
  • Charity Shops
    • Must be registered with the Charities Commission
    • Must qualify for 80% Mandatory Relief
    • Local charity – Discretionary Relief Top Up of 20%
    • National charity – top up of 0%

b) Non-Profit Making Organisations

  • Community Amateur Sports Clubs (CASC)
    • Must be registered with the HMRC as a CASC
    • Must qualify for 80% Mandatory Relief
    • Must NOT generate a substantial proportion of its income from a licensed bar or have a gaming machine on the premises
    • Discretionary Relief Top Up of 10% with 10% deducted for each of the qualifying criteria not met, consistent with local community and local sporting organisations
  • Local Community and Local Sporting Organisations
    • Do NOT qualify for 80% Mandatory Relief
    • Maximum relief of 50% with 10% deducted for each of the following qualifying criteria that is not met:
      • Membership of the organisation or use of the organisations facilities is open to all sections of the community and the fees are not set at such a level as to deny membership or use to certain sections of the community
      • Membership of the organisation or use of the organisations facilities is actively encouraged from particular groups of the community eg young people, unemployed, vulnerable groups, senior citizens etc
      • Membership of the organisation is drawn predominantly from the Councils area
      • The organisation does not generate a substantial proportion of its income from a licensed bar or gaming machine on the premises
      • ‘Charity Style’ Shops only: The organisation wholly donates the proceeds of the sale of goods (after the deduction

Application

An application must relate to the current financial year, unless the liable person has just received an account following late valuation for a previous year (s).

The application must be in writing or via email from the rate payer or someone authorised to act on their behalf.

Make an application - send an enquiry

The Council may require the applicant to provide documentation covering their circumstances in support of the application. No costs will be borne by the Council in the provision of this evidence. This information should include, but is not restricted to:

  • Proof of charitable status (where applicable)
  • Proof of CASC registration (where applicable
  • Copy of the organisations Memorandum and/or Articles of Association
  • Financial records (with reference to bar and/or gaming machine income)
  • Any other appropriate information

The Council reserves the right to verify and validate any information provided.

The application must set out the circumstances upon which the request is based and why the relief should be granted.

If information or evidence requested has not been received within 21 days of the Council’s request then the Council will close the application and no award will be made.

The Council may refuse to award a reduction where lack of information / evidence does not enable the Council to reach an informed decision regarding the applicant’s circumstances.

Decision Process

When making its decision the Council will consider:

  • a) any other available reliefs or discounts etc have been applied for or granted
  • b) the impact on local Council Tax payers of any award being granted
  • c) the impact on the local area of any award not being granted.

The above list is not exhaustive and other relevant factors and special circumstances will be considered.

Any decision to award a Discretionary Rate Relief will be reviewed annually and may result in a request to confirm the organisations circumstances have not changed.

If there is a change in circumstances which means that it is no longer appropriate for an award to be made, then the Council may end or adjust the award as appropriate.

Any award made will be direct onto the ratepayer’s Business Rate account, thereby reducing the amount of Rates payable.

The Council will provide a written notice of its decision to the applicant or their representative within 28 days of receiving sufficient information to make a decision. The decision will specify:

  • The amount of the award (if appropriate)
  • The period of the award (if appropriate)
  • In the case of a refusal the reason(s)
  • Details of how to ask for a reconsideration / appeal

Re-Considerations / Appeals

The request for a reconsideration must be made in writing to the Director of Finance within 28 days of date of the original decision letter.

Fraud

The Council is committed to the fight against fraud in all its forms. Any applicant who tries to fraudulently claim a Discretionary Rate Relief might have committed an offence under the Fraud Act 2006.

If the Council suspects that fraud may have occurred, the matter will be investigated as appropriate and could lead to criminal proceedings.