Risks to charities linked to business rates reliefFull business rates are due on empty commercial properties that remain unoccupied after three months, including lower value properties such as small shops. However, charities occupying commercial property qualify for a mandatory 80% discount on business rates, provided the property is used wholly or mainly for charitable purposes. Local authorities also have the discretion to grant the remaining 20% as a further discount. The Charity Commission, the independent regulator of charities in England and Wales, is aware of cases where charities are being approached by retailers and landlords of hard to let property to enter into tenancy agreements that would relieve the landlords of the requirement to pay full business rates. Equally, some charities are actively marketing their willingness to enter into tenancy agreements with commercial landlords. Read more... Add new comment
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