Business Rates - Disabled Welfare Exemption, Anyone done it?

[madmover]

Currently in the process of buying a new office for a rehabilitation company I own. I understand that there's exemption to be had for business rates if your business is for disabled welfare. Can anyone shine any light on the guidelines surrounding this? Has anyone here claimed for this?
I've called the local council and i'm awaiting a call back. Chased it today but the department I need to speak with seem to be impossible to get hold of.

Thanks in advance.

Andy

[surveyor]

Chrisgr31 is your man and will no doubt be in within a day or so.

My knowledge of rating exemptions is dates - but I've never heard of this.

There is a relief for charitable / non-profit making bodies of 80% mandatory / 20% discretionary.

Charities is easy. non-profit less so (once took one through a formal application / appeals procedure - fun it was not).

May be something that I am not aware of.

[Chrisgr31]

And here I am, I have heard of it, and have taken advantage of it in the past, however there are quite strict rules and there has been case law on it. If I get a moment tomorrow I'll read up on it to remind myself of the rules and comment further.

[madmover]

Thanks Both! Look forward to the update. If you could point me towards any useful information, it would be very much appreciated!

[Dixy]

That's interesting, what constitutes disabled welfare?

[Chrisgr31]

The exemption is from valuation rather than payment. SO properties that are subject to it do not appear in the Rating List, so it is up to the VO to decide whether the exemption applies. The qualifying use has to apply to the whole of the rateable property.

The qualifying criteria are found in Para 15 of Schedule 5 of the Local Government Finance Act 1988 (found on www.legislation.gov.uk and are

"16(1)A hereditament is exempt to the extent that it consists of property used wholly for any of the following purposes—
(a)the provision of facilities for training, or keeping suitably occupied, persons who are disabled or who are or have been suffering from illness;

(b)the provision of welfare services for disabled persons;

(c)the provision of facilities under section 15 of the M6Disabled Persons (Employment) Act 1944;

(d)the provision of a workshop or of other facilities under section 3(1) of the M7Disabled Persons (Employment) Act 1958.

(2)A person is disabled if he is blind, deaf or dumb or suffers from mental disorder of any description or is substantially and permanently handicapped by illness, injury, congenital deformity or any other disability for the time being prescribed for the purposes of section 29(1) of the M8National Assistance Act 1948.

(3)“Illness” has the meaning given by section 128(1) of the M9National Health Service Act 1977.

(4)“Welfare services for disabled persons” means services or facilities (by whomsoever provided) of a kind which a local authority has power to provide under section 29 of the National Assistance Act 1948."

Any other questions?

[madmover]

Chrisgr31 said:

The exemption is from valuation rather than payment. SO properties that are subject to it do not appear in the Rating List, so it is up to the VO to decide whether the exemption applies. The qualifying use has to apply to the whole of the rateable property.

The qualifying criteria are found in Para 15 of Schedule 5 of the Local Government Finance Act 1988 (found on www.legislation.gov.uk and are

"16(1)A hereditament is exempt to the extent that it consists of property used wholly for any of the following purposes—
(a)the provision of facilities for training, or keeping suitably occupied, persons who are disabled or who are or have been suffering from illness;

(b)the provision of welfare services for disabled persons;

(c)the provision of facilities under section 15 of the M6Disabled Persons (Employment) Act 1944;

(d)the provision of a workshop or of other facilities under section 3(1) of the M7Disabled Persons (Employment) Act 1958.

(2)A person is disabled if he is blind, deaf or dumb or suffers from mental disorder of any description or is substantially and permanently handicapped by illness, injury, congenital deformity or any other disability for the time being prescribed for the purposes of section 29(1) of the M8National Assistance Act 1948.

(3)“Illness” has the meaning given by section 128(1) of the M9National Health Service Act 1977.

(4)“Welfare services for disabled persons” means services or facilities (by whomsoever provided) of a kind which a local authority has power to provide under section 29 of the National Assistance Act 1948."

Any other questions?

Thanks Chris, really appreciate that. I've read alot of conflicting information about this. Some say that the property can be partially used, but only partial exemption will be applied. However, this seems to suggest otherwise. I had an informal chat with the local council yesterday, and the person who was apparently from the correct team, didn't have a clue.

I'll continue to dig and hopefully, at some point, get a yes or no answer from the Valuation Office.

[Chrisgr31]

madmover said:

Thanks Chris, really appreciate that. I've read alot of conflicting information about this. Some say that the property can be partially used, but only partial exemption will be applied. However, this seems to suggest otherwise. I had an informal chat with the local council yesterday, and the person who was apparently from the correct team, didn't have a clue.

I'll continue to dig and hopefully, at some point, get a yes or no answer from the Valuation Office.

Yes "used wholly" are the relevant words and as they say wholly it means totally. For example charitable use the rule is "wholly or mainly" which has been determined as more than 50%.

There is a question mark about offices relating to the use so a Head Office etc. It it is in a property that would qualify otherwise the it is thought the offices would qualify as well.