Business rates—charities and not-for-profit organisations


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Local Government expert
Practice notes

Business rates—charities and not-for-profit organisations


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Local Government expert

Practice notes
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FORTHCOMING CHANGE: The Charities act 2022 (CA 2022) received Royal assent on 24 February 2022 and will be implemented on a staggered basis between now and Autumn 2023. CA 2022 will implement the majority of the recommendations from the 2017 Law Commission report, ‘Technical Issues in Charity Law’. For a summary of the recommendations that have been accepted, see News Analysis: Government response to Law Commission report ‘Technical Issues in Charity Law’. For further guidance on the implementation of CA 2022, see News Analysis: Charities Act 2022—what do we know so far?

Discretionary relief

Under sections 43(6) and 47 of the Local Government Finance Act 1988 (LGFA 1988), charities occupying commercial property qualify for a mandatory 80% discount on business rates, provided the property is used wholly or mainly for charitable purposes. Local authorities (LAs) also have the discretion to grant the remaining 20% as a further discount.

This can be relevant:

  1. •

    where the ratepayer is a charity and the property is wholly or mainly used for charitable purposes

  2. •

    where the property is occupied by one or more organisations none

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Not-for-profit definition
What does Not-for-profit mean?

A commonly used term for non-profit distributing, which can be misinterpreted. Charities may make profit, or surplus, which must be retained for use in pursuance of their objects. It is not distributable to owners or shareholders, as in a commercial business.

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