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Business Rate Relief

Business Rate Relief
3rd March 2016

Business Rate Relief

Business rates are generally the third biggest of outgoing costs for business, after salaries and rent. In some parts of London, business rates can be as high as £40 per sq. ft. This is a significant cost, but some businesses, such as charity and government organisations, are lucky enough to have relief from paying business rates.

If your company does not have relief from business rates and you think what you are paying is too high, you have the option to have the business rates reassessed. This is a long process and can take up to two years, however if you succeed you will be back paid for this time.
Business rates are also payable on empty buildings, something that motivates for landlords to get tenants into empty space. However, there are a still few options for landlords if they wish to not pay business rates whilst there building is vacant. For instance, landlords are relived from business rates during the first three months of a building being empty, if a building is going under major refurbishment works or if the building is severely affected from a fire.

Eugene O’Sullivan a Director at Morgan Pryce says “Business rates have a huge effect on what areas our clients will consider. The difference in looking for space between Soho and Clerkenwell isn’t just a difference in rent, there is also vast variance in the business rates.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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