If the property is only temporarily exempt from business rates, for either 3 or 6 months, there are alternative methods to minimise the rates liability.
Temporary Occupation
This is a common approach to managing rates liabilities.
When a property is empty the property owner will benefit from a 3-month rate free period (6 months for industrial properties). Upon expiry of the initial rate relief period, if the property is then re-occupied continuously for a minimum of six weeks, a further 3 or 6 month relief period may be triggered.
We work with many trusted occupiers who have requirements for short term occupation of various types of property.
If the landlord successfully leases the space whilst a temporary tenant is in occupation, the temporary tenant will immediately vacate to allow the new, longer term tenant (who will take on responsibility for business rates) to move in.
Short-term Rates Mitigation Process
We assess the potential for our clients to reduce their business rates liability.
We work with numerous tenants who rent commercial buildings across the UK.
We identify a suitable tenant for the vacant commercial space.
The tenant leases the space from the landlord and manages the payment of business rates.
We work with tenants who occupy the space with minimal disruption.
Once the tenant vacates at the end of the lease, the the owner will benefit from a new 3-month rate free period.
Charity Occupiers
Charities as well as educational and religious establishments qualify automatically for 80% rate relief, which can increase to 100% at the discretion of the local authority. An owner may consider leasing to an organisation in these categories, on a monthly rolling basis that is rent-free, as this will substantially reduce their rates bill.