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Subletting and Business Rates: What's Allowed and What Isn't

Lawful ways to manage business rates when space is sublet or empty.

Subletting and Business Rates: What's Allowed and What Isn't Business Rates & Property Tax Advisory

Updated October 2026 · Fraser Bond

Business rates · Subletting

Subletting and rates

Occupieris liable
Splitassessments
Avoidanceis challenged
Lawfulsavings
In short: When part of a commercial property is genuinely sublet, the subtenant may become liable for rates on their part, sometimes after the VOA splits the property into separate assessments. Empty property relief gives owners a short exemption before empty rates apply. Schemes that use short, artificial occupation to reset relief are targeted by councils and the government and can be challenged. Lawful ways to reduce rates include checking the rateable value, claiming reliefs you're entitled to, and letting space to genuine occupiers. Fraser Bond helps owners let space to real tenants.
SituationWho usually pays
Whole property letTenant
Part genuinely subletThe occupier of each part, if separately assessed
EmptyOwner, after the exemption period
Artificial occupationLikely to be challenged

Rates and subletting

Lawful ways to cut rates

Frequently asked questions

Can I sublet to reduce rates?

Only genuine occupation counts; artificial arrangements can be challenged.

Who pays rates on sublet space?

Usually the subtenant, if it's separately assessed.

Can Fraser Bond find a subtenant?

Yes, if your lease allows subletting.

Have space to let?

We find genuine occupiers for commercial space.

Get a free valuationSpeak to our team

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