The British Museum has challenged Camden LBC over a £720,000 business rates bill.

It believes it is eligible for a reduced rate because of its charitable status.

A spokesman for the museum said: ‘As a charity which applies all of its funds for charitable purposes, the museum considers that charitable relief against business rates should be applied to the whole of its site.'

The council, however, argues that two restaurants and a gift shop inside the museum should be treated separately and taxed accordingly.

A Camden spokesman said: ‘The Valuation Office Agency has now rated the shops and restaurants separately from the museum.

‘The case revolves around an application for charity relief to be applied to the shops and restaurants, which the council has rejected.'

The case has been adjourned.