Bluetooth constitutes occupation: implications for empty rates
Lambert Smith Hampton has highlighted a recent ruling by the High Court, which it says could lead many occupiers to seek to avoid business rates on empty commercial premises through the use of Bluetooth messaging devices.
Sunderland District Council had appealed against a district court ruling earlier this year, that the presence of a Bluetooth messaging device in a warehouse operated by Complete Mobile Marketing constituted occupation and could legitimately be used to secure a rate-free period of six months. The High Court has backed the ruling.
Richard Wackett, head of rating at Lambert Smith Hampton, says the judgement is “welcome news for investors and landlords struggling to secure tenants while dealing with extensive empty rates charges”.
“The Bluetooth model, which is regarded as a legitimate and beneficial occupation under rating law, does not require complete occupation of the premises, unlike other recommended schemes,” he added. “Landlords with empty business space should seriously consider using the same method – it has the potential to save up to 80% of the annual cost of empty rates, while only using a small part of a property.”
