A charity takes occupation of the property and claims a rebate under The Local Government
and Finance Act 1988 Section 43 (sub-section 6) – The ratepayer is a charity or trustees for
a charity and the hereditament is wholly or mainly used for charitable purposes (whether of
that charity or of that and other charities).
The cost saving is split between the owner and the occupier.
Savings of approximately 50% of Rates payable
Any legal challenge is made against the occupier, not the landlord
Strategy can run indefinitely
Regularly challenged in court
Obtrusive – inhibits marketing and access
Takes time to implement
In the sprirt of the law, occupation means ‘substantial occupation’
in order to trigger the rebate
Recent high profile court cases found in favour of Councils
Lack of scaleability
Councils are actively challenging relief given under Section 43, sub-section 6