Business ratepayers should review what they pay in the light of recent legislation, says land and property consultancy Strutt & Parker.

The extension of the Small Business Rate Relief scheme and recent case law which used "intermittent occupation" in mitigation present opportunities for some business owners to reduce the rates they pay.

Rob Close, partner in Strutt & Parker's Northallerton office, said: "The Government's decision to delay a review of business rates until 2017, rather than 2015, has raised concerns amongst ratepayers as it means they will continue to pay rates based on 2008 values for another two years despite the fall in property values since then.

"However, there are opportunities for some ratepayers to reduce the rates they pay. In his Autumn Statement, Chancellor George Osborne announced a 12-month extension to the Small Business Rate Relief scheme to 31 March 2014."

Ratepayers, who have to apply to their local authority for relief, qualify if they use only one property or a main property with additional buildings with rateable values of less than £2,600.Under the scheme, they will receive 100% relief (the normal rate is 50%) for properties with a rateable value of £6,000 or less; if the rateable value is between £6,001 and £12,000, the relief is tapered between 100% and 0%. Additionally, for those with rateable values of between £12,000 and £17,999 their bill is calculated using a small business multiplier.

The chancellor also announced in his Autumn Statement that,subject to further consultation, all newly built commercial property completed between 1 October 2013 and 30 September 2016 will be exempt from empty property rates for the first 18 months.

Mr Close added: "Ratepayers are also using the case law example set by Nuneaton and Bedworth Borough Council v Makro Properties Ltd last year. Makro used the exemption known as 'intermittent occupation', which is intended to provide rate relief to a landlord when a tenancy ends and the property is placed back on the market.The exemption grants three months rate relief for vacant commercial properties and six months for industrial."

He said the Court held that Makro's use of a warehouse for limited storage for just over six weeks was sufficient to trigger anew period of rate relief - a useful cost-cutting measure in challenging markets for commercial lettings. The local authority in this case felt the degree of occupation was insufficient to amount to rateable occupation, but the Court disagreed.

Mr Close said: "Many businesses are now using the facts of the case to mitigate their empty rates liability, but the decision may well be challenged as the Government introduces the Business Rates Retention scheme which will give local authorities a much greater interest in how many local businesses are paying rates.

"Currently local authorities simply pass the rates they collect to central government, but from April 2013 with the introduction of The Business Rates Retention scheme, local councils will be able to keep a proportion of the rates they collect. Each case will be approached on its facts and merits but it is likely that local authorities will seek to challenge the extent and nature of the occupation where they feel the degree of occupation is insufficient."

For more advice and information please contact Strutt &Parker's Northallerton office on 01609 780306.