It is proposed that existing charity shops continue to benefit from the 100% exemption until the next non-domestic revaluation, anticipated to be brought into effect from April 2019. From this point on, it is the view of the Department that charity shops should incur a rating liability of up to 20% in order to satisfy the principle that ‘everyone should pay something’ and maintain a healthy mix in the high streets. Charities would still be expected to pay full rates pro rata on turnover related to goods that are bought in for re-sale.
CTG’s response calls on the Northern Ireland Executive to reconsider their proposals, highlighting the importance of charity shops as significant source of both revenue for investing in charitable purposes and social value, both of which have a positive impact on the wider community. As proposals stand, CTG feels that both these aspects of the work of charity shops would be at risk.
CTG has also fully endorsed the responses submitted by the Charity Retail Association (CRA) and by the #MoreThanAShop campaign, which highlight in detail the extent of the contribution that charity shops make to the Northern Irish economy.
For more information on the scope of the consultation, click here.