On receipt of an application for rate relief, the authority will first wish to consider whether the institution or organisation is eligible for mandatory relief.
To qualify for mandatory relief, the property must be wholly or mainly used for charitable purposes and the institution or organisation must be established for charitable purposes only or be occupied by any persons administering a trust established for charitable purpose only. Registration under the Charities Act 1993 as amended, is conclusive evidence of charitable status. Bodies which, under the 1993 Act, are excepted from registration or are exempt charities are also eligible for mandatory relief.
Mandatory relief at 80% of rates payable is provided for in sections 43(5) and (6) and 45(5) and (6) of the 1988 Act. This relief is fully centrally funded, in that the authority is not required to pay the amount foregone into the national rate pool.
Although charitable organisations are eligible for 80% mandatory relief, this relief can be topped up to 100% at the discretion of the authority.
Finance up to 31st March 2013
This discretionary top-up is 25% centrally funded, as local authorities are required to pay 75% of any such top-up into the national rate pool. If the authority wishes to increase the relief to charities above the mandatory level, for the purposes of calculating the chargeable amount, sections 43(5) and 45(5) are disapplied and the chargeable amount is determined by, or found in accordance with, rules determined by the authority.
Finance from 1st April 2013
All discretionary relief granted after 1st April 2013 or any changes made after 1st April 2013 will be financed in accordance with the Business Rates Retention Central Government / Local Government Split (50% / 50%)
Public Safety Charitable Trust - and - Milton Keynes Council
