Temporary Occupation Justifies Multiple Rate Relief Claim

A vacant commercial property qualifies for 100 per cent rate relief for the first three months after it becomes empty (six months if it is an industrial property). Once it has been occupied for six weeks, the clock is ‘re-set’, so that if it again falls vacant, another three or six month rates holiday can take place.



In a recent case, wholesaler Makro surrendered to the group’s property company the lease of premises in Coventry, which were empty for a period and so qualified for the exemption from rates. Makro subsequently made minimal use of the premises under licence for a period of three months before vacating them again. They then applied for a further six-month period of rate relief.



The council sought to deny relief from rates on the premises. When the matter reached the High Court, the claim for rate relief was upheld.