York Museums Trust’s business rates have been reduced following a court ruling which could have a significant impact on the way English and Welsh museums are valued in the future. The Trust is part of the Association of Independent Museums [Alliance member].
The Upper Tribunal (Lands Chamber) has ruled on appeals in favour of the Trust which argued that rates should be set based on net income, not the cost of rebuilding, which the Valuation Office Agency (VOA) has traditionally used for many museums.
The Tribunal also agreed that the York Castle Museum shop and the Hospitium were occupied by the Trust and not just its commercial arm, York Enterprises Ltd, so were eligible for the standard 80% charitable relief.
The decision has seen the Trust’s rateable value reduced by £120,000 against the original listing, with a large proportion of this coming from the Yorkshire Museum and Gardens’ revaluation because of the level of expenditure needed to maintain and run the site.
The Heritage Alliance recent consultation response on business rates is here.