The Charity Commission has opened an inquiry into a housing trust’s use of commercial premises which may be liable for business rates.
The Augustine Housing Trust — which describes itself as a “storage charity” — is already under investigation by the commission for allegedly not submitting statutory financial information with the regulator on time. The body claims the trust is now a year overdue in filing its accounts for its last financial year.
Kevin Gregory, a trustee of Augustine Housing Trust, has always denied any financial irregularities. “Our accounts have been filed properly since 2004, we’ve always sent the same figures, but not in the form they want,” he said. “It’s nonsense. Our accounts and returns have always been in order and the Charity Commission has gone in and altered them.” In its most recent accounts filed with the commission, Augustine claims it had a 2011-12 income of £22,942, but spent just £10.
Now the wrangle has spread to the Augustine’s use of commercial property making it, the commission says, the fourth charity it has investigated for “similar practices”. The trust has already lodged an appeal against the latest inquiry.
Charities receive 80 per cent mandatory relief on business rates on any property they occupy. But an increasing number of commercial landlords with unoccupied shops and offices are approaching charities and offering them donations to take on leases, as part of a scheme to avoid paying business rates on empty properties.
The Public Safety Charitable Trust has been ordered to wind up after the High Court found it was liable to pay business rates; the Africa Relief Trust is being investigated for allegedly holding rented properties “on standby’’, while claiming the 80 per cent business rates relief available to charities, and Kenya Aid Programme is in a long-running battle with Sheffield City Council over property rate relief on two warehouses it leases in the city.
In reply Gregory — who is also a trustee of Legal Action, another charity under investigation by the commission — has accused the regulator of defamation by altering the Augustine Housing Trust information on the Charity Commission’s website.
