The Supreme Court is set to rule on a dispute over non-domestic rate relief between the London Borough of Merton and health club company Nuffield Health next week. It is in a long-running case that could have implications for gym chains and businesses that operate as charities across the country.
The dispute concerns Nuffield Health’s Merton Abbey complex, which it bought from Virgin Active in 2016. Nuffield Health, which runs more than 100 fitness centres, is a registered charity established “to advance, promote and maintain health and healthcare of all descriptions and to prevent, relieve and cure sickness and ill health of any kind, all for the public benefit”.
Charities are entitled to an 80% reduction in non-domestic rates on premises that are used wholly or mainly for charitable purposes. After buying the Merton Abbey centre, Nuffield Health applied for the relief. However, it was withdrawn after a visit from the council because the inspector found the centre was not being used wholly or mainly for charitable purposes.
Nuffield challenged the decision and won in the High Court, which found that the health club was entitled to the discount. The council appealed the decision, and later lost on a majority ruling in the Court of Appeal.
The council appealed again, and the case was heard over two days by the Supreme Court in March. In an emailed statement today (1 June), the court said that judgment will be given on 7 June.
It has been a busy 2023 for real estate in the Supreme Court, with multiple property-related hearings and judgments since the start of the year.
Most notably, in February the court ruled in favour of the residents of an exclusive apartment block that is overlooked by the viewing gallery of London’s Tate Modern, in Fearn and others v Board of Trustees of Tate Gallery [2023] UKSC 4; [2023] EGLR 14.
London Borough of Merton Council (appellant) v Nuffield Health Ltd (respondent)
Supreme Court; hearing dates 7-8 March 2023
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