Some Relief for Business Rate Payers with this Supreme Court decision

3rd March 2017

Derby Office Icon

Developers should now apply to have business rates reduced where they are carrying out redevelopment or major refurbishment works to a commercial building.

On 1 March 2017, the Supreme Court overturned the previous judgment of the Court of Appeal in Newbigin (Valuation Officer) v SJ and J Monk that an office building that was undergoing development was considered capable of occupation and therefore liable for full business rates.

The Supreme Court was asked to decide whether the building should be rated on the basis of its physical condition on 6 January 2012 or whether, as found by the Court of Appeal, the Local Government Finance Act 1988 required the valuation officer to assume that the property was in reasonable repair in its previous state as “offices and premises” on that date.

The Supreme Court unanimously agreed that the building should be rated on the basis of its physical condition on the relevant date. The court ruled that the property should have been valued at the nominal sum of £1 RV, which resulted in a significant reduction in the rates bill during the redevelopment of the building.

This is great news for investors and developers who will now save significant costs on development projects.

To read the complete judgment please visit the Supreme Court website here: Newbigin (Valuation Officer) (Respondent) v S J & J Monk (a firm) (Appellant).

Further information & Legal Advice

If you would like to discuss the points raised in this article in more detail or if you have any queries, please contact a member of our Real Estate Team.

RELATED: REAL ESTATE >>


FROM THE ADVICE CENTRE

News

Geldards Property Team Pull Out the Stops to Deliver COVID-19 facility
22/05/2020
The Nottingham based Commercial Property Team at leading regional law firm Geldards, have pulled out the stops to deliver a deal that will see a Coronavirus recovery facility delivered.
more...

Blogs

The New Electronic Communications Code – the changes you need to know about
05/02/2018
Do you have electronic communications equipment (eg telephone masts etc) on your land or buildings; or you are an electronic communications provider?
more...

Publications

Introducing Public Services
05/04/2016
The Geldards public services team is one of the largest specialist teams in the country focused on supporting the public sector and organisations providing services to the public sector.
more...

PARTNER

David Watson

DAVID WATSON

Partner, Nottingham

+44 (0)115 983 3718
email
more...

PARTNER

Graham Banks

GRAHAM BANKS

Partner, Derby

+44 (0)1332 378 306
email
more...

PARTNER

Susanne Bradley

SUSANNE BRADLEY

Partner, Cardiff

+44 (0)29 2039 1705
email
more...