Liverpool City Council - relief and reductions

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Saturday 20 March 2010

Relief and reductions

Charity and Non Profit Organisations

Find out more about relief on Business Rates for charities and non profit organisations.  

Charities and Registered Community Amateur Sports Clubs

Charities and Registered Community Amateur Sports Clubs are entitled to a maximum of 80% mandatory relief from business rates on any non-domestic property that is either wholly or mainly used for charitable purposes (including most charity shops) or as a Registered Community Amateur Sports Club. Councils also have discretion to remit all or part of the remaining 20% of the bill on such property.

Non-Profit Making Organisations

The local authority has a discretionary power to give relief up to a maximum of 100% in respect of property occupied by certain bodies not established or conducted for profit.  Each individual case will be judged on its own merits.

Organisations that may qualify for mandatory rate relief

• Non domestic premises occupied by a charity or the trustees of a charity where the premises are used wholly or mainly for charitable purposes

• Non domestic premises occupied by an organisation, which although not a registered charity, has charitable objectives. A copy of the Articles of Association or the constitution of the organisation must be provided for inspection by the Council

• In the cases of charity shops, use of the premises must be wholly or mainly for the sale of goods donated to the charity and the proceeds of the sale (after deductions for expenses) applied for the purposes of the charity

• Registered Community Amateur Sports Clubs and Industrial and Friendly Societies.

Organisations that may qualify for discretionary rate relief

• Organisations entitled to mandatory relief as set out above

• Non profit making organisations whose main objectives are charitable, philanthropic, religious, or concerned with education, social welfare, science, literature or the fine arts

• Non profit making organisations occupying premises wholly or mainly for the purposes of recreation.

Considerations for awarding Discretionary Relief

• Does the organisation have an open membership policy?

• Are the facilities provided for disadvantaged groups e.g. disabled, unemployed, older people?

• Are facilities available to non members e.g. use by schools or say by young people in the case of a cricket club?

• Is the organisation supported by self help or by grants from bodies other than the Council?

• Are the facilities provided complementary to those provided by the Council or relieve the Council of the need to provide such facilities?

• Are the facilities, in the main, run for the benefit of persons resident in the City?

• Is the organisation capable of supporting itself financially without the need for assistance from the Council?

• What are the levels of admission fees charged to the public?

• Is it a club that is a professional or semi-professional organisation?

• Is the application from an organisation involved in minority community sports?

Duration of Rate Relief

Where an application is determined by the Council prior to 30th September relief will be allowed for both the current and previous financial years where appropriate.

In the cases of applications determined after 30th September, rate relief will only be allowed from 1st April in the current financial year or a later date where appropriate.

Additional Information

In the cases of clubs with bar facilities, relief will generally not exceed 50% unless there are exceptional circumstances.
Sympathetic consideration will be given to organisations affiliated to local or national organisations and where participation in local/national events publicises and promotes the City.

Where a property receives charitable relief, a claim cannot also be made for Small Business Rate Relief.

An application for rate relief should be made immediately even if the Valuation Office Agency has not assessed a rateable value for the premises.

How to apply 

You can download a Discretionary Rate Relief form or a Mandatory Charity relief form. 

You can also download Explanatory notes on relief for Charities and other 'not-for-profit' Organisations.

The forms are available in PDF format and you will need Adobe Reader to view it.

This page contains Adobe PDF documents. If you have problems accessing PDFs you can:

• Download a PDF viewer 
• use a PDF conversion tool
• find out more about PDF accessibility.     

Hardship

We have discretionary powers to grant relief for businesses experiencing particular financial hardship. As this relief is part funded by Council Taxpayers, our ability to exercise this discretion is restricted. European Union competition rules generally prohibit government subsidies to businesses.  Relief from taxes, including non-domestic rates, could be construed as granting state aid.

The Government only reimburses the Council with 75% of the relief granted in these circumstances, so a quarter of the cost falls directly on Council Tax payers. For this reason, the Council in Liverpool will usually only grant this relief where it is evident that it is in the interests of the community that the ratepayer remains in business because either.

• He/she provides a unique, regularly-required amenity, or
  
• The loss of the employment provided by a ratepayer would be severely damaging to the local community.                      

Before we will consider granting this relief, a written request must be made and copies of the last two years audited accounts supplied. Please contact us for further details.

Changes to Empty Property Rates 1 April 2008

Under revised regulation, The Non-Domestic Rating (Unoccupied Property England Act 2008, the following changes took effect from 1 April 2008.

These amendments include:

• Replacing full exemption for industrial properties with an exemption for the first six months only.

• Properties that have been empty for more than three months will no longer receive the 50% relief from rates. 

Below are explanatory notes giving further details of the changes and the Government's reason for their introduction.

As part of the Government's commitment to promoting the efficient use of land and property, it is taking action to modernise empty property relief for Non-Domestic rates.  This is to provide a positive incentive to bring vacant shops, offices, factories and warehouses back into use.

A 100% business rate charge will apply to most properties that have been empty for three months or more, or six months or more in the case of industrial and warehouse property, with effect from April 2008.

These reforms will encourage owners to re-let, redevelop or sell unused property; improving access to premises and reducing rents for businesses, as well as reducing the need for development on Greenfield land.

What will this mean for my rates liability?

From 1 April 2008, most property that has been empty for more than three months, or in the case of industrial property, for more than six months - will no longer receive relief from rates.

Are there any exemptions to this charge?

After the initial three or six month rate free period expires, empty property will be liable for 100% of the basic occupied business rate unless:-

1. It is held by a charity and appears likely to be next used for charitable purposes.

2. It is held by a community amateur sports club and appears to be next used for the purpose of the club.

3. The rateable value of the property is less than £2,200 (amended temporarily for 2009/10 to properties with a rateable value less than £15,000).

4. The owner is prohibited by law from occupying the property.

5. The owner is prohibited by action taken by the Crown, or any other local or public authority from occupying the premises.

6. The property is included in the schedule of monuments compiled under s.1 to the Ancient Monuments and Archaeological Areas Act 1979.

7. Is a listed building as compiled under Section 54 of the town and Country Planning Act 1971.

8. The owner is entitled to possession only in his capacity as the personal representative of a deceased person.

If the following insolvency or debt administration situation exists

• A bankruptcy order within parts 8 to 11 of the Insolvency Act 1986.

• The owner is a trustee under a deed of arrangement to which the Deeds of Arrangement Act 1914 applies.

• The owner is a company subject to a winding up order made under the Insolvency Act 1986.

• The owner is entitled to possession of the property in his capacity as liquidator under s.112 or s.145 of the Insolvency Act 1986.

• Is an Administrator of a company in possession of an unoccupied property.

Can I have my property removed from the rating list?

If your property is in poor condition and cannot be economically repaired, the valuation officer may judge that it should be taken out of the rating list altogether.

The valuation officer is an officer of HM Revenue and Customs and can be contacted on telephone number 0151 802 1000 or by going to their website at http://www.voa.gov.uk

Can I appeal against the change in my rates liability?

The changes in rates liability arising from the reforms to empty property relief are not in themselves grounds for appeal.  However, if you disagree with the rateable value that appears in the current rating list entry for your property, under the existing arrangements you may challenge it by making an appeal to your local valuation office.

Partly Occupied Properties

If a property is only partly occupied on a temporary basis, it is not always possible to amend the Rating List.

From 1 April 2008, as a consequence of the reforms to empty property relief, the empty part may, subject to the billing authority's approval, receive a complete exemption from rates for the first three months if it is empty (or, if it is an industrial property, for the first six months).

After the initial rate-free period expires, the apportionment will cease to have effect and the occupied business rate will be apply to the whole property.  This will ensure that occupiers can benefit from any occupied business rate relief's to which they are eligible - such as small business rate relief - on the whole of the property, not just the occupied part.

Transitional Arrangements
Transitional arrangements will phase in the effect of significant changes in rateable value that arose from the 2005 revaluation of non-domestic property.  The Government will limit the percentage by which bills may increase or decrease each year.

Where appropriate, these arrangements will operate until  31 March 2009 (the Government has decided that this scheme will only run for 4 out of the 5 years of the rating list).

Special rules apply when dealing with changes in rateable value as a result of splitting or merging properties during the life of the 2005 rating list.

Further information about transitional arrangements may be obtained from us or from the website of the Valuation Office at http://www.voa.gov.uk/business_rates/tranrelieffaq4.htm. 

Contact us 

Post
Liverpool City Council
Revenues Service
PO Box 2012
Liverpool
L69 2DX

In person
You can visit us at one of our one stop shops. It is best to make an appointment on our Appointments Hotline: 0151 233 3016. Please note that the last appointment will be half an hour before closing.

Telephone
0151 233 3068

Fax
0151 225 2145

email
business.unit@liverpool.gov.uk