We work in partnership with a charity. They sign a lease on the property, but do not take occupation. Their charitable objective is to ‘source and market commercial property to other charities’.
Once this lease has been agreed, the landlord is no longer liable for empty building rates.
The charity then markets the property to other charities as available to let and is able to claim relief from their own rates expense under The Local Government and Finance Act 1988 Section 45 (subsection 6) – “A vacant property where the ratepayer is a charity and it appears that when next in use the hereditament will be wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).”
This strategy has taken two years to perfect, is tried and tested, and is currently saving our clients money.
It has also been appraised and approved by a leading London law firm specialising in charities and tax.