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.

Recent Success

Penzance Office Conversion

Overview
If your property is uninhabitable due to redevelopment works, it may be possible to reduce your RV or have it removed from the Rating List altogether. We have had recent success in removing a client’s property from the 2017 Rating List, effectively reducing their business rates liability to £0 during a programme of redevelopment works.

Problem
The top floor of a well-known office building in Penzance, Cornwall is being converted to residential apartments. The pair of office suites had historically been found in a state of disrepair, but for rating purposes whilst vacant and unoccupied, rating law requires the VOA to assume these are in repair and assess the properties for rating purposes.

Solution
On commencement of the redevelopment works to convert the suites to residential accommodation, we submitted a detailed check with supporting evidence to the VOA.

Result
The outcome was the successful removal of the property from the Rating List, resulting in a business rates rebate and an overall saving of £25,000.

Any questions? Call us

Our experienced team is ready to assist with unparalleled regional advice

TRURO

Tel: 01872 245600

PLYMOUTH

Tel: 01752 261811

EXETER

Tel: 01392 203010

BRISTOL

Tel: 0117 428 6555

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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