Business rates...when do I become liable?

[anonuk]

We signed an agreement for a new business premises and have began moving things in to the property (with the agreement of the landlord). However, our lease hasn't actually begun yet as the landlord is doing work on the unit which needs to be done before the lease begins.

I would like opinions on whether I am liable for business rates now (am I technically 'in occupation' as I have started moving things into the property), or will I be liable for business rates when my lease actually starts?

 

[Mr D]

You write to the council to inform them you now occupy xxx unit at that address and would like to register for business rates.

 

[Alison Moore]

I would have thought though that you're not technically liable for rates until your lease commences.

 

[anonuk]

I would have thought though that you're not technically liable for rates until your lease commences.

That was my initial thought, but every website I look at states along the lines of "'Occupation' means occupation by goods or stock. Your occupied rate charge will start on the date you move goods into the premises, not the date you open for business."

 

[kulture]

That was my initial thought, but every website I look at states along the lines of "'Occupation' means occupation by goods or stock. Your occupied rate charge will start on the date you move goods into the premises, not the date you open for business."

That is correct. Normally a landlord wil never let you into a property without a lease in place. This is unusual. But the rate liability lies with the occupier. Now if you tell the district that you are setting up, doing necessary work, and have NOT MOVED STOCK IN, then you may be eligable for zero rates for an empty property for a while.

 

[anonuk]

That is correct. Normally a landlord wil never let you into a property without a lease in place. This is unusual. But the rate liability lies with the occupier. Now if you tell the district that you are setting up, doing necessary work, and have NOT MOVED STOCK IN, then you may be eligable for zero rates for an empty property for a while.

Thanks - I might try this approach and see what they say. The landlord is being great so far (I presume in an effort to keep me on side in the current circumstances).

We signed an 'agreement for lease' in November last year but there's no current start date for the actual lease as the landlord is doing work specified in the agreement for lease. Part of that agreement is to fit built in furniture that we were providing so have moved said furniture into the premises and the landlord has fitted it. We are now also starting to move other stuff into the premises in an effort to move bit by bit seeing as we are unable to hire a van currently.

I have read that 'empty' properties are exempt from business rates for 'the first 3 months' that the property is empty. The property has definitely been empty longer than 3 months as we first viewed it in September 2019.

 

[kulture]

If the landlord is doing the work and you are just providing the materials (fixtures and fittings) I would argue that the landlord is still occupying the property