This report sets out the reasons why an application for non-domestic rate relief in respect the “Rowans Hospice” charity shop has been refused and seeks member endorsement to this decision.
In October 2013, the council received an application for charitable rate relief from the Rowans Hospice Trading Company Ltd, in respect of shop premises at two locations in the borough.
The Rowans Hospice Trading Company Ltd is a wholly owned trading subsidiary of the parent charity, The Rowans Hospice. The purpose of the trading company is to generate income and maximise profit from its trading activities which are then donated, less expenses, to the parent charity.
Whilst the profits are donated to the parent charity, the trading company cannot be considered as a charitable organisation, nor is it an organisation that can be determined as a not for profit. The application for relief was therefore refused.
This decision was challenged by Anne Yendell, the Director of Finance & Operations at the charity, which led to a review of the application and a reconsideration of relevant legislation, case law and previously sought Counsel’s opinion. This review reinforced the opinion that neither mandatory nor discretionary relief could be granted for the properties in question.
Anne Yendel has once again challenged this decision requesting that we reconsider the application using our discretionary powers, in light of the important work the charity does.
Decision type: Non-key
Decision status: Recommendations Approved
Notice of proposed decision first published: 07/03/2014
Anticipated restriction: Fully exempt - View reasons
: Finance Strategy;
Decision due: 2 Jun 2014 by Executive
Lead member: Executive Member for Policy & Resources
Lead director: Director of Finance & Resources
Contact: Adrian Collier, Local Taxation Manager Email: firstname.lastname@example.org.
Background Papers: File of correspondence Exempt by virtue of Paragraph 3 - contains information relating to the financial or business affairs of any particular person (including the Authority holding that information)