Background
The Salvation Army occupied 101 Newington Causeway, London as its headquarters in 2017, with offices for up to 500 staff. It was accepted that most of the building qualified for exemption from non-domestic rating under paragraph 11(2)(b) of Schedule 5 to the Local Government Finance Act 1988.
The dispute concerned a large hall and a small prayer room. The hall was used extensively for staff meetings, training, presentations and other workplace events, but also for weekly prayer meetings and Christmas carol services. The prayer room was available to staff for private prayer or reflection. The Valuation Tribunal for England held both spaces exempt; the Valuation Officer appealed.
The Court’s Holding
The Upper Tribunal dismissed the appeal. It held that “ancillary” use under paragraph 11(2)(b) means use subordinate, supplemental or incidental to office use, but need not be a generic or typical office facility. The provision is to be construed in the ordinary way, not with a specially liberal approach for religious bodies.
On the facts, the hall was primarily used for activities ancillary to office use, and its additional use for prayer meetings and carol services did not alter that conclusion. The prayer room was provided for staff wellbeing and used by staff; it was no less ancillary to office use than facilities such as a kitchen. Private prayer does not itself prevent a room from qualifying for the exemption where its use is ancillary to office use.
Key Takeaways
- Ancillary office use is not limited to facilities commonly found in every office.
- A room’s religious use does not automatically defeat exemption under paragraph 11(2)(b).
- The hall and prayer room were exempt, leaving the property’s agreed rateable value at £1.
Why It Matters
The decision clarifies that rating exemption for religious organisations’ office premises turns on the factual relationship between a space’s use and office use, rather than on whether the facility is religiously neutral or typical of a conventional office.
It also confirms that space used for private prayer may fall within the office-use exemption where it serves staff and is ancillary to the organisation’s office occupation.