Business rates relief for charities, non-profits and sports clubs

Registered charities, not-for-profit organisations and community amateur sports clubs may qualify for business rates relief on properties they occupy or are responsible for.

This support helps organisations focus their resources on delivering services to our local communities.

The council offers two main types of business rates relief that may be available to local organisations: Mandatory Charitable Rate Relief and Discretionary Rate Relief. These are outlined below.

Mandatory Charitable Rate Relief

Charities and non-profit organisations are entitled to 80% mandatory business rates relief when the property is occupied and used wholly or mainly for their charitable purposes.

You may qualify for this 80% rate relief if:

• Your organisation is a registered charity or not-for-profit organisation, and;
• The property is used mainly for charitable purposes, and;
• The property is occupied by the charity or its trustees

If the property is empty, you may qualify for extended empty property relief if it will be used for charitable purposes when reoccupied.

Contact us at business.rates@reading.gov.uk to apply.

Sports Clubs

Sports clubs can claim 80% rate relief by registering as a community amateur sports clubs (CASC) with HM Revenue & Customs (HMRC). Please see the HMRC website for more information.

If the property is empty, you may qualify for extended empty property relief if it will be used by a CASC when reoccupied.

Contact us at business.rates@reading.gov.uk if this applies to you.

Discretionary Rate Relief (DRR)

Charities receiving mandatory relief may also be eligible for an additional 20% discretionary relief. This top-up is available to help organisations experiencing temporary financial difficulty, for a period of up to 12 months.

Who can apply?

You may be eligible if your organisation:

• Is a registered charity, non-profit, or voluntary group
• Occupies premises in Reading and is liable for business rates
• Provides services that benefit Reading residents, especially those who are vulnerable or disadvantaged
• Is at risk of becoming financially unviable without support

Note: Relief is not available to profit-making organisations or those with substantial reserves.

Criteria

We will consider applications for DRR based on the extent to which the application meets all of the following criteria:

• The extent to which the organisation helps Reading Borough Council meet local needs, and
• The extent to which the organisation matches priorities set out in Reading Borough Council’s council plan, and
• That the organisation will face hardship if support is not provided through DRR

How to apply

Follow these steps to apply for DRR:

1. Check your eligibility using the criteria above
2. Download the application form [add link]
3. Complete the form and gather supporting documentation
4. Submit your application by email or post

Email: business.rates@reading.gov.uk
Post: Business Rates Team, Reading Borough Council, Civic Offices, RG1 7AE

You must continue to pay your business rates until you receive a decision.

Frequently Asked Questions

Can I apply if my organisation already receives mandatory relief?

Yes, but DRR is discretionary and not guaranteed.

Does the organisation have to be a registered charity to apply?

No, you just need to demonstrate that your organisation is not-for-profit. This is usually achieved by sending the relevant non-profit documentation from HMRC/companies house.

Am I eligible to apply as a private school with charitable status?

No, as of 1 April 2025, private schools that are charities will no longer be eligible to receive business rates charitable relief.

Can I apply if my organisation is commissioned by Reading Borough Council?

No, providers that are currently commissioned to provide services on behalf of Reading Borough Council will not generally be considered for DRR as they should already have demonstrated that they are financially viable at the start of the arrangement. These organisations would need to demonstrate that their circumstances have substantially changed.

How long is DRR granted for?

DRR is usually granted for one financial year.

Will business rate relief be backdated?

We will take into account the need to backdate DRR as part of our decision, you should continue to pay rates until a decision is made.

How do I demonstrate that my organisation will become unviable without DRR?

As a general guideline, to qualify for DRR, an organisation should not have enough unrestricted funds (money not set aside for specific purposes) to keep running for more than 12 months, unless it has a business plan showing how the extra money will be used to support the local community.

Can I appeal the decision not to grant DRR?

An unsuccessful applicant may make a request for the council to review its decision, but only if your circumstances have changed significantly since the original decision was made.

Contact Us

If you have questions or need help with your application:

Email: business.rates@reading.gov.uk