Regulator sets up fifth statutory inquiry into charity over business rates relief

The Charity Commission has launched an investigation into a fifth charity over concerns about business rates relief.

The watchdog said it had opened a statutory inquiry earlier this month (3 June) into Manchester-based Life Foundation Trust, which was registered in 2012 and is now in liquidation.

The trust’s charitable objects included the promotion of education, the advancement of health and the saving of lives.

The Charity Commission said it was “investigating concerns about the trustees' decisions to enter into agreements by the charity to occupy vacant commercial premises, resulting in the charity becoming potentially liable for the payment of significant business rates.

“The inquiry will examine whether the trustees have properly discharged their legal duties including timely filing of the charity's annual accounts and returns and whether, and to what extent, there was mismanagement or misconduct in the administration and management of the charity on the part of the trustees.”

In May 2013 the regulator issued alerts to charities warning them of the risks associated with business rates relief. Five charities are now under investigation by the regulator in connection to their business rates relief arrangements.

The Commission said its policy, after conclusion of the statutory inquiry, was to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were.

The Life Foundation Trust website says all its activities have been closed.

In May 2013 the Public Safety Charitable Trust lost its case against three local authorities which contested its claim for charitable relief on unused business premises.

See also: Business rates and the Public Safety Charitable Trust ruling by Virginia Lloyd of South Cambridgeshire District Council, one of the authorities involved in the case