Business Rates Halls Of Residence

[horseshoes]

Wasn't sure where to post this one. Do universities have to pay business rates or are they exempt, even when they rent out their premises such as Halls of Residence.

[EDDIE51]

A lot of Universities get charity status, so pay just 20% of the full business rates. It is a controversial subject with some MPs wanting the charity status abolished .

[Buenchico]

Are you sure, Eddie?

As halls of residence are occupied for long-term residential use, they nominally come under Council Tax arrangements, rather than those for Business Rates. However, as they're 'Class M' properties, they're exempted from Council Tax anyway.

[EDDIE51]

Read this
http://www.theguardian.com/higher-education-network/higher-education-network-blog/2011/mar/24/universities-charitable-institutions
Most Universities are Charities just as Oxfam is.
They pay just 20% of the rates a business would pay. (though they are businesses)

[EDDIE51]

^^ Cambridge and Oxford city councils would be far better off if the Universities paid full business rates. Obviously they benefit in other ways that help out with the finances though.