Nuffield Health v London Borough of Merton [2021] EWCA Civ 826 (28 May 2021)

Nuffield Health v London Borough of Merton [2021] EWCA Civ 826 (28 May 2021)

The Court held that, for mandatory rate relief under section 43(6)(a) of the Local Government Finance Act 1988, the use of the premises themselves must satisfy the public benefit requirement as defined in the Charities Act 2011. Nuffield Health failed to demonstrate that its membership fees did not exclude those of modest means, and the limited services available to non-members were insufficient to constitute use of the premises for charitable purposes. Therefore, the premises were not being used wholly or mainly for charitable purposes as required by statute.

Citation
[2021] EWCA Civ 826
Parties
Respondent/claimant: Nuffield Health; Appellant/defendant: London Borough of Merton
Jurisdiction
England and Wales
Judgment Date
28 May 2021
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed
Legal Topics
Mandatory Rate Relief, Charitable Purposes, Public Benefit Requirement, Non Domestic Rates, Charity Commission, Charities Act 2011, Local Government Finance Act 1988
Charity Law Local Government Law Taxation Mandatory Rate Relief Charitable Purposes Public Benefit Requirement Non Domestic Rates Charity Commission +2 more

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Parties

Nuffield Health

Respondent/claimant

London Borough of Merton

Appellant/defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether Nuffield Health's use of the premises qualifies as 'wholly or mainly used for charitable purposes' under section 43(6)(a) of the Local Government Finance Act 1988
  2. 2 Whether the use of the premises satisfies the public benefit requirement under the Charities Act 2011
  3. 3 Whether charging market-rate membership fees excludes the poor and fails the public benefit test

Ratio Decidendi

The Court held that, for mandatory rate relief under section 43(6)(a) of the Local Government Finance Act 1988, the use of the premises themselves must satisfy the public benefit requirement as defined in the Charities Act 2011. Nuffield Health failed to demonstrate that its membership fees did not exclude those of modest means, and the limited services available to non-members were insufficient to constitute use of the premises for charitable purposes. Therefore, the premises were not being used wholly or mainly for charitable purposes as required by statute.

Court Disposition

Appeal allowed

Orders

  • Declaration that Nuffield Health is not entitled to mandatory rate relief for the premises under section 43(6)(a) of the Local Government Finance Act 1988
  • Order for repayment of rates previously relieved to be set aside