If you own or manage vacant commercial space, you’re likely to have some knowledge of business rates mitigation schemes. These schemes often involve placing short-term tenants or occupiers in properties to restart the business rates exemption period - typically three months for most commercial premises.

In this case, Principled Offsite Logistics Ltd (“<strong>POLL</strong>”) - a company specialising in such mitigation schemes - installed temporary occupiers, such as light storage users, for 6-week periods, allowing landlords to claim renewed rates relief.

The City of London challenged the practice, alleging it amounted to tax avoidance, and sought to recover over £110,000 in unpaid rates for periods in 2022-2023.

The High Court rejected this argument, and found that even temporary, low-level commercial use qualifies as legitimate occupation, meaning the rates relief reset was valid.  The City of London has sought permission to appeal this decision to the Court of Appeal, but it is unclear whether permission will be granted.