Hellier Langston were approached by the owners of Kings Farm in Hordle, New Forest, which over a number of years has developed into a popular rural business park comprising both converted former agricultural units, as well as purpose-built small business units.

The Requirement

One of the units, a circa 6,800 sq ft former barn had for several years been let to a number of tenants by way of Tenancies at Will, with no physical division between each of the let areas. The unit had therefore been brought into the Rating List as a single assessment, and a backdated rating demand issued amounting to a substantial sum.

We advised the client that it was tactically better to submit a further Challenge application on the same grounds, but this time quoting recent case law

The Solution

On the advice of Hellier Langston, a check application was submitted seeking to split this assessment based on the occupation of the unit. This first Check submission was refused by the VOA on the grounds that the landlord still had paramount control of the premises, and that the property was an open-plan unit with the same access shared by each tenant.

Rather than escalating this failed Check Application to a Challenge one, we advised the client that it was tactically better to submit a further Challenge application on the same grounds, but this time quoting recent case law that dismissed both of their grounds for refusal.

The Outcome

The subsequent Check Application was successful, resulting in separate assessments for each of the tenants, with all but one of the new assessments being entitled to 100% Small Business Rates Relief. The one new assessment that did not fully qualify for 100% relief had a new Rateable Value of £12,750, which with tapered Small Business Rates Relief meant that only 25% business rates would be payable.  The new assessments resulted in virtually all the backdated rates which had been paid being reimbursed to the client by NFDC, with no remaining rates liability going forward as the landlord.