In 2012 Makro won a court case that gave assistance to those looking to mitigate their rating liability. In essence, they stored a pallet of files in a warehouse and this was deemed to be occupation, even though they were only using 0.2% of the space for six weeks. The practical result was that the landlord could then claim another six months grace from paying Rates.
Two weeks ago, a similar scheme was outlawed by the High Court. This case involved a charity, PSCT, that takes out leases and charges landlords a reverse rent. The charity then installs bluetooth transmitters, creating a quasi network in the unit.
As a charity, they were entitled to an 80% reduction in the Rates payable. Three councils argued, successfully, that it was not a genuine occupation and that full Rates were now payable. The local authorities won, with the judge rejecting PSCT’s arguments that they were providing a public message system for charitable purposes.
Business Rates Mitigation is a complicated field and we, at Chartex, have the skills to help you plan ahead. Every case is different and there are no off the shelf solutions, so please call or email to discuss how we can help you.
No comments:
Post a Comment