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The Supreme Court rules that Special Purpose Vehicle (SPV) leases cannot be used to avoid paying empty rates.

Hammond Associates (H&A) have long been aware of rates mitigation companies who form SPV’s also known as special purpose entities (SPE’s). These are often ‘off the shelf’ Limited Companies which never actually trade but go in to administration almost immediately, thereby negating the requirement to pay Business Rates.

What is an SPV? It is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company, makes its obligations secure, even if the parent company goes bankrupt. For this reason, a special purpose vehicle is sometimes called a bankruptcy-remote entity. However, the companies who operate rates mitigation work this in reverse; the bankruptcy of the SPV doesn’t affect the parent company but nets them a huge saving on the rates payable on the property.

H&A have long campaigned for these to be outlawed as they serve no other purpose than saving the landlord business rates payable, with no benefit to the community.

H&A offers a completely legal, ethical, long-term solution, to reduce the costs associated with empty property ensuring that everyone wins in the relationship.  For more information, please visit

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Photo Credit: The Supreme Court

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