14 March 2016
Applicant type: Public
Please provide your Council's response as to whether Mandatory Charitable 80% Relief would be granted to an Independent School where the Ratepayer is a Limited Liability Partnership (LLP) and annual profits are shared between three Partners.
Under the guidance of Charitable Relief, Schools who are not state funded are liable to pay their own business rates. However if they are Academies, Free Schools, Foundation, Trust or Voluntary Aided they qualify as exempt charities and carry 'Charitable Status' giving them the same relief as registered charities.
My FOI request relates specifically to the scenario denoted in EXAMPLE below:
'Determining Charitable Status'
They offer the 'Advancement of Education'
They are set up for the 'Public Benefit'
Ratepayer: Limited Liability Partnership
School: Independent Day School for boys and girls aged 3-11
Annual profits split between 3 Partners
I believe the above Independent School would be eligible to receive this rates relief based on the specific guidance which determines 'Charitable Status' and therefore they are exempt from registration but still benefit as described in *'Determining Charitable Status' above.
Due to this, where detailed supporting evidence is supplied, would you grant an Independent School (often set up as Ltd, Partnership or LLP companies) that pays profits by way of dividends to its Partners, 80% Mandatory Rates Relief?
Advice given - 16 March 2016
Any such application would be considered under the relevant legislation, S43 of the Local Government Finance Act 1988 (as amended).
Please note that our responses were accurate to the best of our knowledge at the time of release, and have not subsequently been updated. This information should be considered an historical record only.
Updated: 13 Apr 2017