Business Rates Update - 5 October 2016

There have been a number of developments on business rates which affect investment management and lettings to corporate occupiers. Exactly what use qualifies as charitable and benefits from reduced rates is clearer, as is what qualifies as a business unit in a multi-let building plus there is disturbing news on rates appeals.

Charity Rates Relief Guidance

During the toughest phase of the recession, lettings to charities for a nominal rent gave investors of vacant properties the benefit of no longer paying business rates, but questions arose over the use of these leases especially where the landlord paid the charity a contribution based on a share of the cost of the saving, and over some charities that did not fully occupy the leased properties or only occupied them inefficiently. Could these arrangements stand?