The Charity Commission has opened a statutory inquiry into Africa Relief Trust over its business rates relief arrangements.

The sector regulator understands that the charity has been holding rented properties ‘on standby’ to be used for raising awareness at an unspecified future time, meanwhile claiming the 80 per cent business rates relief charity properties enjoy.

Africa Relief Trust, which works with poverty, education and sickness in Uganda, was originally the subject of a Commission regulatory compliance case over its rate relief arrangements in September 2011.

As it looked deeper into the situation, the Commission became increasingly concerned about the risks to the charity’s assets and about the trustees’ failure to provide full and complete information. It opened its inquiry on 12 July 2013.

“The purpose of the inquiry,” a Commission spokeswoman said in a statement, “is to examine regulatory concerns including whether the charity trustees have properly discharged their trustee duties when making decisions to enter into tenancy agreements and occupy those properties to further their charitable purposes and whether any benefit to the landlord or other parties is incidental to that.”

The Commission spokeswoman added that it will publish a report after its investigation has concluded.  

Anthony Peers, a trustee at Africa Relief Trust, told civilsociety.co.uk: "We have been requesting a meeting with the Charity Commission and we've been prepared to travel down to London [from Lancashire] for it.

"Unfortunately, the Commission has changed the meeting date and cancelled on several occasions."

Rate relief a hot issue

Two other registered charities were recently taken to court regarding business rate relief, both adding to the Commission’s concerns about Africa Relief Trust.

The Public Safety Charitable Trust was found liable for business rates costs while Kenya Aid Programme awaits an outcome on whether it is liable for rates totalling £1.6m.

The issue of charities enjoying reduced business rates has also been in the news recently because of a consultation on the issue in Wales.

And losing rates relief continues to be one of the major concerns that charity retailers express to Charity Finance’s annual Charity Shops Survey, with the issue shooting up the list in this year’s edition, out in October.

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