Nicholas Dobson reports on a cunning wheeze to avoid Council Tax ultimately defeated in the Supreme Court by Rossendale & Wigan Councils
- Special purpose vehicle companies set up for the sole purpose of avoiding liability for empty property business rates were not in law the owners of the properties. The original owners therefore retained business rate liability.
Scene 1. Exterior. Outside pub. Night. Two men, A and B, in close conversation.
A: ’Ere.You know them empty properties of yours?
B: Aye. What of ‘em?
A: I think there might be a legal way to get around paying business rates.
B: How’s that?
A: You set up a company, right, and lease the empty property to it. So it’ll be the company that has to pay business rates. Only it never does! Then eventually you just collapse the company and . . . goodbye business rates! Simples!
B: But will it work?...
Unfortunately, that’s where we must leave this interesting fictitious exchange and allow the real world
