Mergers – the art of combining 2 things to make them smaller…

Mergers can be a great way to reduce rate liability if two or more contiguous properties are occupied by the same ratepayer.

If two or more adjacent properties are occupied by the same ratepayer there is an opportunity to merge the two, separate assessments, to form one hereditament. By doing so the new assessment may benefit from an overall reduction in Rateable Value. The rate per square metre often reduces as the floor area increases, known as quantum discount.
They must however be contiguous.

Industrial properties tend to benefit more from quantum savings although within the Greater London area there is a scenario where merging assessments would not be beneficial. This is the case when properties within London have a Rateable Value above £75,000 and must therefore pay the Crossrail Supplement. If before a merger the properties do not pay the supplement but as a result of a merger their Rateable Value exceeds £75,000 then this charge will be added to the assessment and could lead to an overall increase in costs to the ratepayer. We conduct research prior to any merger check, in order to ensure it will benefit the ratepayer.

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