No deposit scheme
Tenancy deposit protection is for residential tenancies of homes (assured tenancies in England, occupation contracts in Wales). A commercial rent deposit is held under a rent deposit deed that sets out the amount, where the money sits, when the landlord may draw on it and when it goes back.
No Renters' Rights Act
The Renters' Rights Act 2025 governs residential tenancies in England, and the Renting Homes (Wales) Act 2016 does the same in Wales. Neither reaches a shop, office or unit let to a business, so there is no periodic tenancy by default, no written statement of terms in that form and no once-a-year rent increase procedure of that kind.
No Right to Rent
Right to Rent checks apply to adults occupying a home. A business occupier is referenced as a business: accounts, trading history, references, and a guarantor or a rent deposit where the covenant is thin.
Security of tenure under the Landlord and Tenant Act 1954
By default a business tenant has the right to a new lease when the old one ends. Landlord and tenant can contract out of that right, but only with the statutory warning notice served and the tenant's declaration made before the lease is signed. We put the choice in the heads of terms; your solicitor serves the notice.
MEES for non-domestic property
A non-domestic property has needed an EPC rating of E or better to be let since 1 April 2023, unless an exemption is registered. The government has proposed raising that minimum to C by 2027 and B by 2030. We check the rating, the expiry and the exemption position at the appraisal and say what works, if any, the rating needs.
Business rates and empty-rates relief
The occupier pays the rates once let. An empty property is the owner's liability after the relief period (three months for most property, six for industrial), so a vacant unit is appraised with the rates bill and the letting timetable side by side.
VAT option to tax
Commercial rent is exempt from VAT unless the owner has opted to tax the building, in which case VAT is charged on the rent and on the service charge and other sums the lease treats as rent; a deposit attracts VAT only when it is drawn on. Whether to opt is a decision for you and your accountant; we make sure the lease and the invoices follow it.
Code for Leasing Business Premises 2020
The RICS professional statement that sets out how heads of terms are negotiated and recorded: in writing, in plain terms, covering rent, term, breaks, repairs, rent review, alienation and the 1954 Act position before solicitors are instructed. Our heads of terms follow it.