When a business plans a move to new premises, most of the attention goes on rent, fit-out costs and the practicalities of the move itself. Business rates often get far less scrutiny, yet they can materially change the economics of a relocation if you do not check them carefully beforehand.
Rateable value is not the same as rent
A common mistake is assuming that a lower headline rent automatically means lower overall occupancy costs. Rateable value is assessed independently and can vary significantly between similar-looking units, depending on location, size banding and when the valuation was last reviewed. Always check the current rateable value on the government’s business rates register before signing anything, rather than relying on an estimate from the landlord or agent.
Transitional relief and reliefs you might be entitled to
Depending on your business size and sector, you may be entitled to small business rate relief, retail relief, or transitional relief following a revaluation. These reliefs are not always applied automatically, and moving premises can affect eligibility, sometimes for the better and sometimes not. It is worth speaking to the local authority’s business rates team directly, since rules and thresholds can change from one financial year to the next.
- Check the current rateable value for the specific unit, not just the postcode
- Ask whether any transitional relief applies and for how long
- Confirm whether small business rate relief still applies at the new premises
- Factor in empty property rates if there is a gap between leaving and moving in
- Budget for backdated bills if the valuation is under appeal
Getting professional valuation advice early
A qualified rating surveyor can often identify potential savings or flag risks that are simply not visible to someone reading the register figures alone, particularly for larger or unusual premises where the valuation methodology is less straightforward. While engaging a surveyor is an added cost, the potential savings from a successful appeal, or the risk avoided by spotting a problem before signing a lease, generally justify the expense for anything beyond a small standard unit.
Void periods and empty property rates
If there is any gap between vacating your current premises and occupying the new ones, be aware that empty property rates can apply after an initial exemption period, usually three months for most commercial property. Planning the timing of a move carefully, or negotiating an overlap or early access with the new landlord, can avoid paying rates on two properties at once during the transition.
Appeals and revaluations can work in your favour too
It is worth remembering that a rates challenge is not only something that happens to your disadvantage. If you believe the rateable value assigned to a prospective new unit is too high relative to genuinely comparable premises nearby, you can challenge it through the official checking and challenging process. This can take time to resolve, so it should never be relied upon as a reason to sign a lease on the assumption that rates will definitely come down, but it is a legitimate avenue worth exploring if a figure looks clearly out of step with the local market.
Don’t forget transitional costs around the move itself
Beyond the ongoing rates liability, businesses sometimes overlook one-off costs directly tied to the change of premises, such as updating registered address details with HMRC, Companies House, and various licensing bodies, some of which can have knock-on effects on other charges or renewals. Building a short checklist of every body that needs notifying about the change of address, alongside the rates considerations, keeps the administrative side of a relocation from becoming an afterthought discovered weeks after the move.
Build it into your relocation budget from day one
Business rates are easy to overlook when a relocation project is focused on removals logistics, IT continuity and staff communication, but getting the figures wrong can turn an otherwise well-planned move into an unexpectedly costly one. Building a realistic rates estimate into your relocation budget from the outset avoids nasty surprises further down the line. If you are planning a commercial move and want help thinking through the practical and financial details, get in touch with our team for a free consultation.