Over the Christmas period the Government quietly released a new policy in connection with business rates.
The change in policy concerns property owners who refurbish their properties being faced with a full rates charge once they have completed the works.
This new policy change will allow Councils to serve a completion notice on a refurbished property in their area which will result in an assessment for business rates even if the property is not yet ready for occupation.
Prior to this policy change completion notices, in the main, could only be served by Councils on new buildings in CAT A specification that would then deem that on a certain future date the building would be assumed to be completed and therefore assessed for business rates. Councils can now use the policy change to issue a Completion Notice on a refurbished property as soon as it reaches a CAT A condition, assessing the property for business rates earlier.
This will create a rates liability for developers/landlords when potentially there is no tenant and therefore no rental income.
For further information on this policy change please contact James Clarke MRICS, Partner & Head of Professional Services at jc@newtonperkins.com or 07764969786
