Every avenue should be explored
07 October 2008
The Rating team has been successful again and saved money on behalf of their clients
The Rating team at Manchester, acting on a referral from Asset Management, has gained an instruction from their client who has acquired a 55,000 ft² warehouse in Greater Manchester. The majority of this site was formerly occupied by a sportswear retailer who went into receivership in 2007 and has remained vacant since.
Works are being undertaken to create 3 units from the warehouse and the client has instructed the Building department to advise. As the 6 month empty rate relief exemption period had elapsed prior to the acquisition, the client had to pay nearly £100,000 in business rates from the date their interest commenced up to 31 March 2009.
David Burke has successfully deleted the Rateable Value from the Rating List on the basis that there was no beneficial occupation whilst the works are ongoing. This means that the Council have no basis on which to levy rates. At some point the “new” units will be reassessed for rates but they will then benefit from the 6 month exemption period.
Acting on behalf of another landlord client elsewhere in Greater Manchester, a similar exercise has been undertaken. A former cold store had been vacant for a couple of years and works had commenced to remove the old refrigeration equipment. The Rateable Value has been deleted saving £70,000 for the current year.
These clients were not alone in now having to pay large rates bills on empty properties, all those who own or hold onto empty property will be feeling the effects of the new legislation, The Rating (Empty Properties) Act 2007, and there may be ways and means to legitimately avoid payment. Given today’s economic circumstances every avenue should be explored to save money and improve cash flow.
