Crown Estate: Fees and Charges
The question
To ask the Chancellor of the Exchequer, whether the Crown Estate charges private businesses (a) lease fees and (b) royalty fees on profits.
Answered by James Murray
The Crown Estate as a landowner charges occupiers/tenants, which can be private businesses, rent in accordance with their lease agreements.
In some cases, the rent structure under The Crown Estate’s leases can include a turnover rent element whereby the amount of rent charged is either a percentage of the occupier/tenant’s turnover made at the leased property or the higher of fixed rent and a percentage of the occupier/tenant’s turnover at the leased property. These rent structures are commonly used in the retail market. Royalty fees are used in certain specific situations within a lease structure.
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