LANDLORDS of hard-to-let Croydon offices are avoiding hundreds of thousands of pounds in business rates by renting them to a charity, the Advertiser can reveal.
Floors of office space in three landmark buildings have been leased to the Public Safety Charitable Trust (PSCT), which installs wi-fi to send out public service messages, securing an 80 per cent rates cut in the process.
The charity's presence in Croydon, mainly since October, comes after some councils have disputed its entitlement to tax cuts, arguing installing wi-fi does not count as occupying the building.
Mark Ferguson, co-founder of the PSCT, said the charity works in 2,000 locations across the country, and had been offered premises that landlords were struggling to let but that still incur business rates.
He said: "We take a 12-month lease, with a seven-day get-out clause, saying if they find another tenant we are prepared to move out."
He acknowledged that landlords nationally gave a donation to the charity as part of the lease arrangement, "to help us build and maintain our charity", adding the amount "varies".
The combined annual full business rates for the Croydon spaces, which include the basement to the 12th floor of St Anne House in Wellesley Road, amount to roughly £600,000 a year. The three buildings are registered to separate owners.
In May 2012, Milton Keynes Council claimed business rates back from PSCT, with the court deciding the relevant premises were not used "wholly or mainly" for charitable purposes.
But in June, a court decided in favour of PSCT in a case brought by Cheshire West and Chester Council.
A spokesman for Croydon Council said it was awaiting the outcome of a High Court test case that "we expect will clarify how we can resolve any dispute over the charitable use of a property".
He added: "All of the charitable reliefs that have been applied by the council are supported by the appropriate documentation and evidence.
"However, as has been seen nationally, there are instances where organisations use the regulations to their financial advantage, and whilst they may adhere to the letter of the law, they don't have full regard to the spirit of the rules."
Mr Ferguson, meanwhile, highlighted the successes of his charity's public service messages, which include reminders to donate and police appeals.
As well as St Anne House, the spaces secured rates relief by the PSCT are the third, sixth and seventh floors of the "50p building" (12 to 16 Addiscombe Road), and the seventh floor and part of the basement of Sunley House, Bedford Park.
The Advertiser was unable to obtain a comment from their owners at the time of going to press.
