When undertaking a major refurbishment project, many property owners focus on the build cost, contractor timelines and planning permissions but overlook one area that can bring substantial savings: business rates. 

A recent tribunal ruling has highlighted how landowners can successfully argue for a reduction in rateable value during periods of refurbishment, unlocking a significant commercial advantage.  We help clients identify and claim these types of opportunities and ensure they’re handled properly. 

What Happened and Why It Matters 

In a recent case, a property undergoing major internal refurbishment was temporarily removed from the Valuation List, resulting in its rateable value being reduced to £1 during the works.  Why? Because the building was not capable of beneficial occupation at the relevant date. 

The tribunal agreed that works such as removal of fittings, rewiring, new drainage, renewal of toilets and internal partitions rendered the property unoccupiable, meaning business rates did not apply in full during this period. 

This is a valuable precedent for anyone refurbishing or repurposing commercial space. 

How We Can Help You 

We work closely with landlords, developers, and occupiers to: 

• Assess whether your property qualifies for business rates reduction during refurbishment or redevelopment.
• Prepare evidence and documentation to support your position – key to success in formal negotiations or appeals.
• Liaise with surveyors and the Valuation Office Agency (VOA) to ensure the correct rateable value is applied at each stage of your project.
• Model the potential savings and align them with your project cash flow and tax planning.

Added Value from Tax & Business Planning 

We go further by integrating this into your overall tax and development strategy. That includes: 

• Claiming capital allowances on qualifying building works.
• Assessing VAT implications of refurbishment costs and contractor arrangements.
• Supporting cash flow forecasting and funding applications with accurate cost planning, including any temporary reliefs.

We also ensure your refurbishment strategy aligns with your broader business goals whether you’re repositioning an asset, increasing rental yield or prepping for sale.  

Talk to Us Early to Maximise the Opportunity 

Timing and documentation are everything.  The earlier we’re involved in your refurbishment plans, the better we can help secure rates relief and optimise your project’s financial outcome. 

Whether you’re planning a full redevelopment or simply repurposing part of a building, get in touch!