Advantages of Scheme Two
- Crusader Empty Property Rates Avoidance will introduce a Tenant for your empty property and prepare a 21/34 weeks Lease agreement. The Lease will grant exclusive possession to the Tenant who will then be classed as the Owner for the purpose of Section 65(1) of Local Government Act 1988 and therefore be liable for Business Rates.
- This Lease will be outside the Landlord and Tenant Act and should the property be let or sold, the lease can be terminated by the landlord with seven days notice.
- The Tenant will then sub-let, under a Tenancy at Will Agreement, to an associated / connected company. For the purpose of Section 65(1), the sub Tenant will be granted exclusive possession of the property and be then classed as the owner of the property and liable for Business Rates until the termination or expiry of the agreement.
- Occupancy will be minimal, clean and of low disturbance.
- The Landlord can continue to market the property For Sale or To Let.
- On expiry of the Lease, a new agreement can be put in place, if required.
Case Law – Rateable Occupation (Clause 3.4.1 from Rating Manual – Volume 4- Section 2: Occupation and The Hereditament)
The concept of the hereditament and whether it exists in any given case is inextricably bound up with the concept of rateable occupation, and following the Court of Appeal decision in John Laing & Son v Kingswood Assessment Committee (1949) 1 KB All ER 224 in order to be capable of rateable beneficial occupation, four basic tests have to be fulfilled; i.e a hereditament must be capable of:
- Actual occupation
- Exclusive occupation
- Beneficial occupation
- Occupation for not too transient a period
If any of these capabilities are missing then there cannot be rateable occupation. The hereditament should be carefully examined to determine whether it is in fact capable of separate occupation and therefore able to be entered in the rating list.
“You don’t pay taxes, they take taxes.” Chris Rock.