The Church of Scientology has won a case relating to business rates exemption for places of public religious worship in the Upper Tribunal (UT) in The Church of Scientology Religious Education College Inc v Andrew Ricketts (Valuation Officer) [2023] UTLC. The UT allowed an appeal from the Church and deemed that two of its buildings were largely exempt from business rates under the Local Government Finance Act 1988 (the 1988 Act).
The 1988 Act requires that in order for a building to be exempt from business rates it must be either a place of public religious worship (or similar) or be used for administrative work or offices relating to the organisation of such public religious worship. The Church's buildings consist of a small chapel, bookshops, a cinema, personality test facilities and a 'Purification Area' (where a person may enter into a 20-30 day programme of exercise to flush out residual toxins within the body.)
In June 2021 the Valuation Tribunal had agreed with the Valuation Officer, Andrew Ricketts, that the Church's buildings should not be exempt under the 1988 Act as although worship took place within the buildings, it was a minor part of the intended activities. The chapel is a small section of the overall structure, and was argued to be insufficiently open to the public, conventional worship not forming part of the day to day routine of scientologists on site. The Valuation Tribunal deemed that the Church failed to pass the 'invitation test' and did not make adequate efforts to advertise its worship as evidenced by its failure to attract non-members at its regular Sunday service, and the exterior of the Church was felt to be insufficiently church-like aesthetically.
However, the UT rejected these arguments, determining that the public's response to the invitation of the church to attend worship was not a factor, only that the public invitation existed and that the church was open to any person who may accept it. In his judgement, Martin Rodger KC also disagreed with the Valuation Tribunal's assessment of the aesthetics of the building, writing that it has "imposing Portland stone façade features balconies and flagpoles which would not look out of place in the Vatican". As the UT had established the chapel was a place of public worship and not private, the appeal by the Church was allowed. The majority of the rest of the building was deemed supplementary to the worship within the chapel and therefore exempt from business rates.
The decision by the UT could be seen as significant for legal recognition of religions which do not follow the same traditional structures and activities as Christianity, Judaism or Islam, and reflects the diversity of religious life within the UK.
