UK: Business rates relief for pubs, clubs, and live music venues; empty property mitigation arrangement ineffective in obtaining property tax relief (Court of Appeal decision)
20% business rates relief for pubs, clubs, and live music venues
The government announced a further 20% business rates relief for pubs, clubs, and live music venues, possibly indicating a move towards a more targeted business rates system in which some sectors receive increased support, while others bear a greater share of the cost. It has been suggested that larger distribution warehouses, online retailers, and businesses perceived as providing limited community benefit could face higher rates in the future.
In addition, the Court of Appeal held in The Mayor and Commonalty and Citizens of the City of London v 48th Street Holdings Ltd and Principled Offsite Logistics Ltd [2026] EWCA Civ 970 that temporary occupation of otherwise empty properties with stored items undertaken solely to obtain property tax rates relief (commonly referred to as “box shifting”) did not amount to beneficial occupation for rating purposes. The decision overturns many years of established practice and case law that had supported the use of such “empty property mitigation” arrangements.
Read an August 2026 report prepared by the KPMG member firm in the UK