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 method for mitigating rates.
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, the owner is permitted to claim a further 3 or 6 month relief period.
We work with many trusted occupiers who have requirements for short term occupation of various types of property and can repeat this process as many times as necessary until the property is let on a long-term basis.
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.
View some of our trusted occupiers
Short-term Rates Mitigation Process
We assess the potential for our clients to mitigate 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, then 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.