Paragraph 1 Type 1 – The occupation is not on a commercial basis

An arrangement is an artificial arrangement for the purposes of section 63H(1)(a) of the Act where it makes a person (“P”) the occupier of the hereditament and the hereditament is not occupied on a commercial basis because one or more of the following applies—

(a)

P is not required to make payment in consideration for their occupation of the hereditament;

(b)

the payment which P must make in consideration for their occupation of the hereditament is—

(i)

significantly below the level which could reasonably have been obtained on the open market on the day the arrangement was entered into, or

(ii)

offset or cancelled in whole or in part by other transactions;

(c)

one or more parties to the arrangement (including a person providing services relating to non-domestic rating) has identified (whether expressly in the arrangement itself or documentation relating to it, or otherwise) the mitigation of non-domestic rates liability as a purpose of, or motivation for, the arrangement;

(d)

P does not have assets which would enable them to act in relation to the hereditament in the manner which is claimed.