Business Rates During Redevelopment

The question of whether business rates are payable while a property is being redeveloped has been determined by the Supreme Court in a decision which will be welcomed by owners and developers. Overturning the Court of Appeal decision in Newbigin (Valuation Officer) v SJ & J Monk, it was held that where a property is undergoing redevelopment and cannot be occupied, the rating list should reflect this reality.

The facts of the case

SJ & J Monk are the owners of the first floor of an office block. The property had previously been occupied by a single tenant but had been vacant since 2006. In 2010 Monk decided to separate the property into three separate offices and instructed contractors to carry out the work.