Legislation
These changes are going to cost the property industry a lot of money and owners and occupiers are looking for ways to lessen the impact of the tax.
The Creative Space Agency is looking to work with landlords to identify vacant properties that can be made available for the creative sector and in doing so save money on empty rates bills.
Two solutions have been identified:
If at least part of an empty property is
occupied for at least six weeks and the occupier takes on responsibility for the rates
it will qualify for a fresh exemption period; 6 months for industrial
property and 3 months for all other types (including offices and retail). The owner then benefits from
the extended rate free
period.
Arts and Creative users are capable of taking on 6 week lettings on a one off and rolling basis (6 week let in one location followed by a 6 week let in another location etc etc).
While users will be legally responsible for rates, we recommend that these costs (and perhaps other costs) may be paid for by landlords on the basis that they will benefit from the rates exemption period after 6 weeks’ occupation.
Registered Charities will continue to receive an 80% discount on business rates and can apply to their local authority for a further discount on the remaining 20%.
Many creative organisations are charities that are either capable of taking on rolling short term lets or for longer term uses of vacant space, so long as the charity is able to vacate on reasonably short notice, should a commercial occupier be found.
Please email Chris Smith to discuss how the Creative Space Agency can help you.
