Q&As

Where the outgoing tenant is no longer in occupation, but their furniture remains on the premises, can a landlord claim empty property relief for rating purposes?

read titleRead full title
Published on LexisPSL on 07/01/2021

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • Where the outgoing tenant is no longer in occupation, but their furniture remains on the premises, can a landlord claim empty property relief for rating purposes?
  • Occupied hereditaments—liability
  • Unoccupied hereditaments—liability

Where the outgoing tenant is no longer in occupation, but their furniture remains on the premises, can a landlord claim empty property relief for rating purposes?

We have assumed that:

  1. the premises are in England

  2. the outgoing tenant's lease has come to an end

Occupied hereditaments—liability

An occupier of the whole or part of a hereditament is liable to pay business rates.

Rateable occupation in relation to non-domestic property is determined in accordance with rules explained and developed by extensive case law. These rules, which applied under the General Rate Act 1967 (GRA 1967) (now repealed), have been preserved under the Local Government Finance Act 1988 (LGFA 1988), but any express statutory rules contained in GRA 1967 must be ignored.

The courts have accepted that there are four necessary ingredients in rateable occupation:

  1. there must be actual occupation

  2. the occupation must be exclusive for the particular purposes of the possessor

  3. the possession must be of some value or benefit to the possessor, and

  4. the possession must not be for too transient a period

These four ingredients have been recognised by the Supreme Court in Cardtronics UK Ltd v Sykes (Valuation Officer),

See ‘The four ingredients of rateable occupation’ in Practice Note: Liability for business rates and Commentary:

  1. Necessary ingredients of rateable occupation: Halsbury's Laws of England [85]

  2. The four ingredients of rateable occupation: Ryde on Rating and the Council Tax [5]

The

Related documents:

Popular documents