Mandatory business rates relief depends on usage: Public Safety Charitable Trust

In England, the court held that a registered charity, the Public Safety Charitable Trust, which provides free Wi-Fi services and broadcasts public safety messages using transmitters installed in otherwise empty commercial properties which it leased could not claim business rates relief as the property was not “wholly or mainly used for a charitable purpose”. The Charity Commission has now opened a statutory inquiry into the charity, which is facing a bill of £1.8m in unpaid business rates and costs. Charities should review carefully any arrangements that they may have entered into that enable such reliefs to be claimed. This ruling comes at the same time as proposals are being consulted on to reduce the rate of available relief in Wales for all charity shops from 80 percent to 50 percent from 2022.

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team here, call 01895 207809 or email charities@ibblaw.co.uk.