Rate this!
Tom McFadden
Member - 2 posts
We are in partnership with another company who wishes to pull out of the building. We would like to assist if possible. (We do not want to end up paying for their absence.) Is there anything we should be doing to assure ourselves we will not be left with their charges and if so what and where can I find this information?
They are asking us to remove all equipment from their occupied floors and once this is complete they are going to vacate it entirely. They are asking us for a reduction in the Business Rates to reflect the fact that the accommodation would be empty, to include evidence in support of proposed revised costs relating to Business Rates as agreed by the local council.
My question is are they entitled to a reduction as the area is unoccupied and if so how is this determined. Also how do I go about sorting this out?
Rate this!
Anonymous
It is my understanding that if part of a property is empty you can apply to the local billing authority for empty relief. Occupier/bill payer can apply using a form which I think is called 'Section 44a.'
I understand that you pay no business rates for the first three months that the property is empty and, after that, an empty property rate of 50% of the normal bill. But on industrial buildings, listed buildings and small properties with rateable values of less than £1,900, there are no rates to pay even after the first three months.
I know you can get relief where only part of the property is empty
Rate this!
Gillian Nightingale
Member - 175 posts
From the address, I assume this is an office and, from the query, that 2 occupations have only one rating assessment between them. The following answer is based on those two assumptions.
Hello Tom
We asked David Webb, a Partner in Paddison and Partners Chartered Surveyors, to provide a response, and his comments are below.
'From the address, I assume this is an office and, from the query, that 2 occupations have only one rating assessment between them. The following answer is based on those two assumptions.
Empty office space attracts, in normal circumstances, nil liability for 3 months, followed by 50% liablility for as long as it is vacant. If the space to become vacant is, however, not assessed in its own right, the law is that "occupation of part is occupation of whole", so there is no reduction in liability. Depending on the length of time the space is intended to be vacant, therefore, obtaining a separate assessment should be considered.
If this happens, the liability outlined above becomes automatic, but it should be borne in mind that two smaller areas may have assessments which total more than the original - around 10% premium is common. Thus £10000 may become £5500 & £5500, reducing the saving.
A better avenue is usually to approach the Council for it to exercise its discretion in being able to waive rates on space which is unoccupied for a "short period". This can often apply for up to 12 months, & requires a formal application. The drawbacks to this are: 1) "short period" has no legal definition, 2) relief is discretionary, & 3) Councils vary greatly in their attitude, & our experience of Liverpool City Council is very poor.'
Please let us know if you need any further information.
0 (0)
