If you are redeveloping or refurbishing your commercial property, you could be missing out on significant savings through business rates mitigation.
At Vickery Holman, our expert rating consultants have a proven history of helping property owners, occupiers, and developers achieve substantial reductions in business rates. Whether you are converting commercial space into residential units, reconfiguring layouts, or undergoing extensive refurbishment, our team has the expertise to help you save.
Reduce Business Rates During Redevelopment or Refurbishment
Why Consider Rates Mitigation?
The 2017 Supreme Court case Newbigin (VO) v. Monk significantly impacted business rates for properties under redevelopment. The decision was a relief for developers, preventing potentially crippling business rates liabilities during periods of refurbishment. It reinforced the notion that properties incapable of beneficial occupation during redevelopment should be valued accordingly, not to be assumed in condition of reasonable repair.
In the case, a property owner sought to lower their business rates from £102,000 to £1 for an office building undergoing extensive renovations. The Supreme Court supported valuing the property as a “building undergoing reconstruction,” acknowledging its inability to generate income or capability of beneficial occupation.
This decision provides vital relief for developers, enabling reduced rates during major refurbishments and ensuring valuations reflect the property’s actual condition.
How We Can Help
Our specialists assess whether your redevelopment qualifies for business rates reduction or removal. We oversee everything—from refurbishing offices to converting commercial spaces into homes, offering:
- Expert legal advice on business rates, highlighting the differences between regular repairs and redevelopment.
- Detailed submissions and negotiations with the Valuation Office Agency (VOA) to reduce your rates.
- Full support through the Check, Challenge, Appeal process to ensure you receive the maximum savings.
Success Story
Recently, we helped the owner of a large hotel in Cornwall save £58,084 in business rates during a conversion project. By leveraging our deep knowledge of business rates law and the appeals process, we reduced their liability, saving tens of thousands of pounds.
Take Action Now
Timing is everything. Acting while your project is underway is crucial to securing savings. If you are planning or currently undertaking redevelopment, we can help reduce your liability.
Our expertise also extends to removing residential properties from the Council Tax Valuation List during refurbishment or redevelopment.
Contact us today for a consultation and discover how we can minimise your business rates liability on your next project.
Our Ratings team are on hand to help – please contact our Business Rates team.
