Empty Rates Mitigation of at least 50%
By qualifying (genuinely!) for charity relief
HOW WE WORK
COPYRIGHT 2025 ASTOP LIMITED ALL RIGHTS RESERVED
On the face of it, this option might seem to some (commercial landlords) as a legitimate way of mitigating empty rates.
After all, it purports to help a good cause (ie. – offering individuals a free space to worship) while also ‘fitting’ with the letter of the law.
When you look a little more closely though – as the Observer has just done in its exposé article – it becomes clear that there is a sizeable gap between what’s promised and what’s actually offered.
It is also becoming apparent that these ‘faith room tax avoidance schemes’ are all about the financial, rather than the spiritual…
And those landlords who fall for this option and are unaware of the inherent dishonesty, (and/or who knowingly turn a blind eye to it) are the ones who stand to suffer all kinds of consequences.
So what should steps can you take as a commercial landlord? To protect yourself, both financially and legally?
Know your options…
At a time when the law is evolving, and the Government is actively exploring how to create a fairer business rates system, it’s good to know which options are no longer viable and which are under close scrutiny. (What was within the law may soon no longer be.)
In a court ruling last year, the corporate interests behind a supposedly “inter-faith organisation” were laid bare. Bradford Metropolitan Borough Council brought a successful claim against a property owner for unpaid rates… and the ruling named and shamed those behind what the judge described as a “scheme” devised in 2021 specifically for the purpose of tax avoidance.
ASTOP is committed to supporting commercial landlords to know exactly where they stand in relation to the law so they can see how to make the best decisions – legally, financially, socially and ethically.
Speak up for what’s right
When, in late 2024, the Government announced its intention to run a consultation on the existing business rates system – mindful of its inadequacy and loopholes – ASTOP responded with its own survey, reaching out to all corners of the commercial property world, to enable key stakeholders to have a greater say in the shaping of the law.
As we see it, it’s up to all of us in this industry to take a stand for what ‘works for all’… that is, that will benefit landlords, councils, charities and the community as a whole.
Making sure the ‘good causes’ are genuine
At first glance, the claims of these ‘faith room tax avoidance schemes’ are unsettlingly close to what ASTOP offers to its clients.
Namely – a way to ‘avoid the pain of commercial voids’ and also ‘unlock the potential of your empty spaces’.
The difference, essentially, is in the legitimacy of those claims.
The solution that ASTOP has brought into being (and which, incidentally, does not have to involve us) is one that involves a rich array of genuine good causes… that is, charities that have been carefully vetted.
And we take great pride in the way we carefully ‘matchmake’ the temporary occupant with the particular empty space… be that for a single charity, or with multiple charities in a sizeable space.
Explore an option with four kinds of financial benefit
The so-called ‘charity-led’ option that ASTOP makes available remains ‘off the radar’ of many commercial landlords.
And when it’s first explained to people, they are often waiting for the catch. There isn’t one. This solution – the only ethical, government-approved solution to empty rates mitigation (whether delivered by ASTOP or not) – has four kinds of potential financial benefits.
Empty Rates Mitigation of up to 100%
When you provide temporary occupation to a charitable tenant for twelve months
CIL savings
The capacity to be granted an exemption from CIL (Community Infrastructure Levy) which can dwarf the empty rates savings.
(NB: One client managed to avoid exposure to a CIL payment of over £311,000… and this was an example of ethical, legitimate tax avoidance.)
CSR / ESG goals
Achieving CSR / ESG goals without the usual cost (and effort)
Understand how to play ‘win-win’
Increasingly, different stakeholders in the commercial property world are realising that there is a way to play ‘win-win’ in a way they had not anticipated.
That is, the scope to choose an option that has positive repercussions, not just for commercial landlords, councils and charities… but also for the wider community.
If you’d like to see what options are open to you – whether a commercial landlord, council landlord, legal or commercial adviser, or as a charity (who would benefit from the opportunity to have a temporary rent-free space, don’t hesitate to get in touch.
