The Commission have their sights set on charities that have entered into business rates arrangements that exploit tax legislation artificially and serve to benefit private interests, with charities benefiting as a by-product rather than a principal aim.
Reasonable and prudent tax planning is fine but the Commission want an appreciation of the potential of some business rates avoidance schemes to bring reputational damage to charities and the sector generally.
The Charity Commission has warned that appropriate advice on reliefs such as business rates should be taken.
The main concern on business rates is charities leasing empty properties from private landlords, carrying out limited or no charitable activity and claiming relief. The arrangement allows the Landlord to save money on empty properties with the charity also sometimes receiving a reverse premium from the Landlord.
The caselaw to date focuses on offices used for the display of artwork with little or no public access, wifi transmitters in office blocks and partial occupation of warehouses. The key question of whether the property is used wholly or mainly for charitable purposes is yet to be definitively answered in relation to the persentage use of floor space. The generally accepted view on charity shops for charitable use is anything greater than 50% of the floor space qualifies but the question remains for other properties.
This is another timely reminder to charities to take advice as the Commission are threatening investigations.
Contact Dominic Curran
We are delighted to announce that our private wealth law department has continued to maintain its Band 2 position in the latest edition of Chambers and Partners High Net Worth.
The new CHF is set to launch and open for applications with £4 million set to be allocated to community-led housing groups to support an increase the supply of affordable housing in England.
Charities, like other organisations, may be subject to or choose to voluntarily comply with the reporting requirements under the Modern Slavery Act 2015.
The draft regulations making it mandatory for anyone entering a registered care home in England to have been double vaccinated unless they are clinically exempt were made on 22 July 2021.
In the Transforming Public Procurement Green Paper, the Government signalled its desire to increase its control over procurements by all contracting authorities.
The monthly round-up from the Anthony Collins Solicitors charities team.
Legal updates as the UK enters into stage 4 of the roadmap and legal restrictions on face coverings and social distancing are lifted.
The first disability we are going to discuss is diabetes. We begin by discussing the different types of diabetes; their similarities and differences and how we live with the disability within our day.
Tim Coolican and Freya Cassia explore the legal and practical options available to providers if a disappointing result is received following an inspection.
Following the launch of the CQC’s new strategy for how it regulates health and social care, many providers will be keen to know more about how the changes might affect them in the future.
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