Charity business rates relief in England

Under Local Government Finance Act 1988 s.43(6), a property qualifies for 80% mandatory relief where:

• The property is used by a charity or its trustees; the council may ask for a registration number or other evidence of charitable status
• The property is used wholly or mainlyfor the charity's charitable purposes
• The use is not such that the property would otherwise be excluded

The statutory test is whether the property is used wholly or mainly for charitable purposes. Mixed use can make the position fact-specific, so give the council an accurate breakdown of the activities and hire pattern rather than relying on a simple percentage rule.

CASCs (Community Amateur Sports Clubs)registered with HMRC also qualify for the same 80% mandatory relief under s.43(6A).

Billing authorities may grant up to a further 20% discretionary relief to charities, taking total relief to 100%. Whether they do depends on the council's local discretionary-relief policy and the facts of the application.

For non-charitable non-profits (CICs, sports clubs not on the CASC register, social enterprises, certain community organisations), s.47 is the only route. The local authority may grant up to 100% relief but is not obliged to grant any. The application typically asks for:

• Evidence the organisation is non-profit-distributing
• Evidence the premises are used for sport, recreation, education, social welfare, or another qualifying purpose
• Latest accounts and constitution / governing document
• Evidence of community benefit and local impact

Policies can include caps, eligibility tests and conditions on local benefit. Read the current policy for your billing council; a neighbouring council's decision is not a precedent.

A village hall that hires out its space frequently raises a specific question: does the “wholly or mainly” test apply to the hall's own use, or to the aggregate use including hirers?

The position established by case law and Valuation Office Agency (VOA) guidance: the test applies to the hall's use as a whole. Where a village hall trust owns the property and lets it for a mixture of charitable activities (community groups, charity fundraisers, parish council meetings) and commercial / social events (weddings, private parties), the question is whether the overall pattern of use is wholly or mainly for charitable purposes.

Do not assume the outcome from the hall's label alone. Give the billing council an accurate hire schedule and evidence of how the premises further the charity's purposes; the council decides whether the actual pattern of use meets the statutory test.

• Small Business Rate Relief (SBRR). Up to 100% for properties with rateable value below £12,000; tapered to £15,000. Cannot be claimed alongside charity relief — choose whichever is more advantageous (almost always charity relief)
• Rural Rate Relief. This has narrow rules for specified businesses in qualifying rural settlements; do not assume that being a rural village hall is enough
• Empty Property Relief. Different rules apply when premises become empty, including specific treatment for some charity-owned property. Check the intended next use and dates with the council before budgeting for relief
• Hardship Relief (s.49). Discretionary relief for ratepayers suffering hardship; rarely used for charities but theoretically available

From 1 April 2025, private schools in England are excluded from the 80% mandatory business rates relief regime even where they are charities. The legislation contains exceptions, including for a private school wholly or mainly providing full-time education to pupils with Education, Health and Care Plans, and does not remove the separate exemption for property wholly used for the training or welfare of disabled people. Check the official policy note for the definitions.

1. Identify the rated occupier. Usually the ratepayer on the bill — often the charity, sometimes the trustees of an unincorporated charity, sometimes a head tenant
2. Contact the billing authority (district or unitary council). Many publish a charity-relief application form
3. Apply for both mandatory and discretionary reliefin the same application where the council's process allows it. Mandatory eligibility and the discretionary top-up are separate decisions
4. Supply supporting documents — charity registration certificate, latest accounts, evidence of wholly-or-mainly charitable use
5. Ask about the effective date.Backdating rules and evidence requirements can differ, especially for discretionary relief. Get the council's answer in writing
6. Renew if requested. Some authorities ask for evidence of continuing eligibility annually

• Charity accounting thresholds →

  The accounts the billing authority may ask for as part of a relief application.

• CIC vs charity →

  Rates relief is one of the biggest tax differences between the two forms.

• Converting a CIC to a CIO →

  If rates relief is material to your operation, this is the route to mandatory relief.

• Compliance hub →

  All compliance guides on one page.

• GOV.UK: Charitable rate relief (England)
• Local Government Finance Act 1988, including ss.43, 47 and 49
• Local Government Act 2003 amendments
• GOV.UK: register a Community Amateur Sports Club
• GOV.UK: private-school business rates change, in force in England from 1 April 2025
• Billing authority discretion under s.47 — confirm local policy with your council

Scope and links checked 14 July 2026. This is general information, not a determination of eligibility; the billing council decides an application.