Last week on the 1st March the Supreme Court ruled that whilst there are ongoing developments within a business premises, the business is not liable to pay full business rates on any business development works to a premises, overturning a previous judgement made in the Court of Appeal in the landmark case ‘Newbigin vs Monk’ ruled
Monk, a freeholder of a first floor office in Sunderland entered into an agreement with a construction company to carry out various internal refurbishment works. Whilst the company was undergoing these works of business development, a valuation officer (Mr Newbigin) came to the office to assess the property for entry on to the non-domestic ratings list.
Mr Newbigin declared that the property was still fit to be an office but Monk disagreed. If the property was still fit to be used as an office then Monk would have to pay full business rates. Monk thought this ludicrous, since the office had no electrical wiring, ceiling tiles, air conditioning fittings nor sanitary facilities.
After a lengthy legal dispute which went right to the top of the British judicial system, the Supreme Court has finally ruled in favour of Monk.
For business owners who have been waiting to redevelop, this is excellent news. At Enness we have been saying for some time that the current climate lends itself favourably to developers and this ruling only bolsters our assertion.
Conducting a business development does not have to mean a complete rebuild of your business premises, far from it. Development can be anything from a light refurbishment to a skyscraper and can really be beneficial to your business: with interest rates set to remain low for the foreseeable future, now really is the time to develop your business- particularly as you will not be charged full business rates whilst the development is going on.
This ruling has made it much easier to develop your business premises without having to worry about paying costly business rates. At Enness, we have the expert knowledge in place to find the best borrowing rates on the market, allowing you to make your development goals a reality. If you have any queries regarding how this latest ruling and what it means for your future development needs then please do not hesitate to get in touch.