The question of business rates liability during redevelopment works was considered by the Supreme Court in 2017. If your property is undergoing redevelopment works and is essentially incapable of beneficial occupation, it may be possible to reduce your RV or have it removed from the Rating List altogether.
Our rating consultants have an excellent record of assisting commercial property owners and developers looking to carry out extensive refurbishment or redevelopment works and have the expertise to submit the required supporting evidence and negotiate with the VOA on your behalf, to achieve the best possible savings. An example of this is commercial premises being converted to domestic accommodation.
Business rates and development works
Whether a property is in ‘repair’ is a complex area of business rates law. Under the current definition of rateable value there is an assumption property will be ‘in a state of reasonable repair’. In most cases the hypothetical landlord will regard repairs as economically reasonable. Only where a property is in such a poor state of repair that a landlord would regard it as uneconomic to remedy the disrepair, is regard had to its actual condition. There is, however, a difference between whether a property is simply in a poor state of repair or being subject to a programme of redevelopment or reconstruction works.
Our team of rating consultants have the experience and expertise to advise you whether the works you are planning to, or are currently undertaking constitute the sort of works required to remove your business rates assessment from the Rating List. The process to alter or remove your business rates assessment is undertaken through the business rates appeal system known as Check, Challenge, Appeal. We can submit a detailed check and negotiate with the VOA on your behalf to achieve the best possible savings.
We have recently acted on the behalf of an owner of a substantial office building in Penzance, part of which was in the process of being converted to residential apartments.
Redruth Office Refurbishment
During redevelopment or refurbishment works, it may be impossible to occupy your property. We have recently successfully removed our client’s property from the 2017 Rating List, reducing their liability to £0 and ensuring they were not paying rates unnecessarily.
A prominent office building in Redruth was being refurbished and reconfigured internally, to suit the needs of our client. We were of the opinion our client should not be paying business rates whilst unable to occupy the property.
On commencement of the works, we submitted a detailed ‘Check’ document to the Valuation Office Agency to have the property temporarily removed from the 2017 Rating List. In order to do so, we compiled extensive evidence, which was submitted via the Government Gateway following the Check, Challenge, Appeal process.
The outcome was the successful removal of the property from the Rating List, resulting in a business rates rebate and an overall saving of £80,000.
The Team for Business Rates Liability During Redevelopment Works
Case studies for Business Rates Liability During Redevelopment Works
Vickery Holman have successfully agreed a period of 3 months Empty Property Rates Relief for a large vacant retail unit in Penzance, resulting in a total of £7,300 in business rates savings over 3 months! Acting on behalf of a local investor, the prominent three storey retail unit in Penzance had recently been acquired as […]
Vickery Holman are delighted to announce the successful negotiation of an empty office building undergoing refurbishment from £162,000 Rateable Value (RV) to £0 RV, resulting in a total of £35,000 in business rates savings over the 5 month programme of works. Acting on behalf of PKF Francis Clark: Chartered Accountants and Business Advisers, Vickery Holman […]
Vickery Holman are delighted to announce the successful re-negotiation of a car showroom business rates assessment from £197,000 Rateable Value (RV) to £75,000 RV, a total of £188,500 in business rates savings! Acting on behalf of a well-known cornish car dealer, Vickery Holman have successfully negotiated a significant business rates reduction on their premises in […]
We have recently acted on behalf of clients throughout the region who’s premises have been affected by the “Mazars and Woolway” case. Here, it was ruled that rooms or floors of a building in multiple occupation must be assessed separately if there are shared areas, such as corridors. The new ruling had most impact on […]
Some interesting updates in our business rates newsletter Click here for more information – Business Rates Newsletter Spring 2019
Acting on behalf of the owner occupier in respect of a Business Rates appeal, Vickery Holman are pleased to confirm a £10,000 saving for our Client, over the 2017 rating list. The detached 1970’s built industrial unit is located on a popular and well known industrial estate on the outskirts of the town centre of […]
What changes to business rates are pending? Is there a justified call for changes to business rates? We have seen that retailers are benefiting from a rates reduction for the next 2 years. Alongside this, the Government have been asked to urgently assess business rates and in particular look at creating either; a sales tax, […]