Explaining exempt properties

When is a charity exempt from water charges? That’s a question which comes up regularly in our conversations with MSPs, and there’s a lot of confusion around exempt properties in Scotland.

While it’s well understood that some organisations are exempt from water and waste water charges, it’s often less clear how to qualify.

At the moment charities gain exemption if they satisfy all of five criteria laid down in the exemption scheme established by the Scottish Government in 2002 and updated on 1 April 2010. The criteria are:

1. The organisation must have been receiving exemption at 31 March 1999.
2. The premises must not be a retail outlet.
3. Registered charities with a permanent liquor licence must have received their license after 1 September 2009.
4. The premises must not be owned or occupied by a local authority.
5. The ‘net annual income’ related to the organisation in any one set of premises must be less than £61,500 for 2011/12 (this limit will rise by £1,500 each year).

We’ve tried to make this as easy as possible for customers, and an application form and guidance notes can be downloaded from our website, at business-stream.co.uk This explains the process and how to qualify.

Ultimately, the decision on whether an organisation is accepted into the scheme is taken by Scottish Water. If exemption is granted, it will apply from 1 April of the year in which the application was made, carrying over from year to year without the need to reapply.

If a charity has applied in the past and been unsuccessful that doesn’t have to be the end of the matter. The criteria were updated on 1 April 2010, so charities which have unsuccessfully applied, or which have lost their exempt status due to relocation, may now be eligible and can reapply for exemption.

The other good news is that it’s now easier to qualify. Changes include:

• increasing the maximum income level necessary to qualify for an exemption from £50,000 to £61,500, and this will continue to rise by £1,500 each year
• removing the rule which said that a permanent liquor license excluded charities from exemption
• removing the requirement for charities to have been in the same property since 31 March 1999 (although they still need to have been in receipt of exemption since then)

We believe that the Scottish Government has asked Scottish Water to review the exemption scheme. However, this is unlikely to change significantly until 2015.

If your constituents are unsure about whether or not they qualify for the scheme, the information on our website will tell them everything they need to know.

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