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With the current publicity over the rating revaluation coming in next month alongside proposed changes to the appeals process, today’s Supreme Court decision will come as a relief to embattled ratepayers.
The Court of Appeal had ruled that a property stripped to a shell whilst substantial refurbishment was being undertaken (configuring a single office into three separate units) should still be valued as if it were in a reasonable state of repair. The Supreme Court disagreed and applied instead the ‘reality principle’ (i.e. a property should be valued as it in fact existed on the material day). In this case, the property was not capable of beneficial occupation (and so the rateable value should be reduced to £1).
Today’s decision should help to make the refurbishment of properties more affordable for property owners and should mean that no rates are payable when no income is being received from a property because substantial works are being carried out to it.
The last two weeks have seen yet another flurry of announcements regarding big high street names including Thomas Cook, Argos, Karen Millen and Coast.
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As part of the continued tightening of the restrictions on drone use within UK airspace, the latest amendments to the Air Navigation Order 2016 come into force on 30 November 2019.
H&M is the latest retailer to confront its landlords about this ‘two tier retail market’ in an attempt to explore and negotiate more favourable terms.
Ann Summers is the latest retailer to have entered into new voluntary deals with the majority of their landlords, rather than using the CVA process.
Partner and Head of Real Estate
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