Small Business Rate relief for a charity

GandalfG

I help out in a small charity which occupies a property with a rateable value of £7000 + car parking space rateable value £200 and we have been getting charitable rate relief of 80% (no top up). Due to the coronavirus, I have found out that small businesses which would occupy premises with the same rateable value would be getting 100% relief. I contacted the council and they say that because we are a charity, therefore we cannot get Small Business Rate Relief (They decided that I am eligible for the 10k grant but I am not sure why) Is this correct? It seems counter-intuitive that a charity should pay more than a business (for us about £700 a year)

oldbikebloke

very unlikely anyone on here has inside info that is not in the public domain, why can't you read the rules like the rest of us have? 
https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector#government-financial-support-for-charities

Government financial support for charities

The Chancellor has announced a £750 million package of support for frontline charities.

HM Treasury announcement of coronavirus funding for frontline charities

The government has also said that charities can access many of the measures the Chancellor previously announced for businesses.

Coronavirus (COVID-19) support for businesses

How to apply

You do not need to take any action. Your local council will apply the discount automatically.

You can estimate the business rate relief using the business rates calculator.

Contact your local council if you’re not getting a relief you think you’re entitled to.

GandalfG

I specifically asked about SBRR because my local council said I am not entitled. I did not ask about the grant, just mentioned it in passing. So please stick to the topic and answer my question which is:-
does an entity being a charity mean that it is not eligible for Small Business Rates Relief even though it is a company limited by guarantee and theoretically a business as well as a charity?

oldbikebloke

GandalfG said:

I specifically asked about SBRR because my local council said I am not entitled. I did not ask about the grant, just mentioned it in passing. So please stick to the topic and answer my question which is:-
does an entity being a charity mean that it is not eligible for Small Business Rates Relief even though it is a company limited by guarantee and theoretically a business as well as a charity?

as i said, why do you think people on here know anymore than can be got from reading the rules yourself ? If your charity pays rates in its own name, it is entitled. That is what the rules say, as per the links already given above which were on topic and gave you the answer you were looking for if you bother to read them, so to repeat the extract again:

The government has also said that charities can access many of the measures the Chancellor previously announced for businesses.

Coronavirus (COVID-19) support for businesses

Contents

1. Paying your employees
2. Paying sick pay
3. Paying tax
4. Business rates relief  <<<<<<<< relevant section 
5. Business support grant funds
6. Support for the self-employed
7. Support for small and medium-sized businesses
8. Support for large businesses

if your council has declined to pay then ask them to justify why. We can't read their minds and therefore advise you on where, how, or why their view may be wrong. The rules say: pay rates, get relief. So if they have refused there is something you are not explaining about your set up.
For example, I have a not for profit client who was declined and was confused until the obvious reason was pointed out to them: they only hire their venue, they are not the actual ratepayer.
Their next obvious move is to discuss with their landlord whether the LL will "share" the windfall (given, as per the rules, to the LL as the liable ratepayer) with its underlying venue users.

GandalfG

Again, I am asking about Small Business Rates Relief. Nothing to do with coronavirus. Read the question

lincroft1710

This states it in black and white

https://www.gov.uk/apply-for-business-rate-relief/charitable-rate-relief

I think the reason charities only get 80% relief is because they are not a "business" and it is not limited to premises with an RV not exceeding £10,000.

GandalfG

It is not clear there that a charity is ineligible for SBRR. It is clear that they can get 80% even with RV more than 15K I agree.
A charity can be a "business" for instance a charity shop, just the proceeds of the "business" do not go to the owner, rather to charitable causes

lincroft1710

Charities are not regarded as businesses as their income (after deducting necessary expenses) goes for charitable purposes rather than the pockets of directors and/or shareholders

GandalfG

Is that mentioned anywhere in the legislation? and what you are saying is that small businesses are eligible for more rate relief than small charities is that logical? If that is the law, I think we should make a petition asking to change it.

lincroft1710

GandalfG said:

Is that mentioned anywhere in the legislation? and what you are saying is that small businesses are eligible for more rate relief than small charities is that logical? If that is the law, I think we should make a petition asking to change it.

You are missing one important point!

Whereas businesses are limited to having single premises and the RV limit of £10,000, charities do not have to meet these requirements, so except for the smallest, most will be better off than a "business". So there is logic, plenty of it in monetary terms! Thus if a charity had multiple premises and was classed as a business, it would lose out big time.

The definition of "business" is my understanding, it may be more positively defined in the legislation.

oldbikebloke

GandalfG said:

Again, I am asking about Small Business Rates Relief. Nothing to do with coronavirus. Read the question

do what?

 Due to the coronavirus, 

you have been given the answer ... SEVERAL times