In Depth:  Ellis-Fermor & Negus Solicitors

A change in the law will impact charities seeking to benefit from statutory relief from National Non-Domestic Rates (more commonly known as Business Rates) in respect of premises owned or leased for charitable use, it was reported in mid-September.

Charities in occupation of commercial premises qualify for a mandatory 80% reduction in Business Rates – which may increase to 100% at the discretion of the billing authority – provided that the premises are ‘wholly or mainly used for charitable purposes’. As a result of a change in the law in April 2013 local authorities now retain a proportion of the Business Rates they recover, meaning that relief applications – and the extent to which premises are actually used by charities claiming relief – are likely to be subject to much closer scrutiny.