Another lease query

Another lease query

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dfen5

Original Poster:

2,398 posts

212 months

Saturday 30th April 2016
quotequote all
Just had to drop out of signing a lease for various reasons on professional advice, although working in there subcontract. That will now stop as I'm getting my own place independently.

At what point do you become liable for business rates? Once you are the lease holder?

Can you have someone from another company working in your leased property (on and off) without a sublease?

surveyor

17,817 posts

184 months

Sunday 1st May 2016
quotequote all
Generally you will become liable once you sign the lease.

However business rates is an occupational tax. If you are in occupation ŷou will generally be legally liable, regardless of what your lease says (although councils will generally be fairly lax as long as they are getting the bill paid).

Most leases prohibit sub-letting of any sort. Landlords will resist any relaxation on this, but may be more amebiable to allowing sublets via licences not creating landlord and tenant rights...

Doofus

25,805 posts

173 months

Sunday 1st May 2016
quotequote all
I don't know where in Warwickshire you are, but a lot of councils around here will waive rates if the rateable value is below £6k. You have to apply for the waiver; you don't just get it automatically.

surveyor

17,817 posts

184 months

Sunday 1st May 2016
quotequote all
Doofus said:
I don't know where in Warwickshire you are, but a lot of councils around here will waive rates if the rateable value is below £6k. You have to apply for the waiver; you don't just get it automatically.
It's a mandatory scheme for small business's who occupy 1 building only

Exemption changed in last budget to £12k with a phased allowance up to £15k

Doofus

25,805 posts

173 months

Sunday 1st May 2016
quotequote all
surveyor said:
It's a mandatory scheme for small business's who occupy 1 building only

Exemption changed in last budget to £12k with a phased allowance up to £15k
I've just been negotiating on a lease for someone, and the key thing (for them) is that it's 100% relief at £6k, and it reduces to 0% at 12k.

surveyor

17,817 posts

184 months

Sunday 1st May 2016
quotequote all
Doofus said:
surveyor said:
It's a mandatory scheme for small business's who occupy 1 building only

Exemption changed in last budget to £12k with a phased allowance up to £15k
I've just been negotiating on a lease for someone, and the key thing (for them) is that it's 100% relief at £6k, and it reduces to 0% at 12k.
I was deliberatly vague on the dates, as I wanted to check.. New scheme from 1 April 2017

Briefing paper at http://www.parliament.uk/briefing-papers/sn06247.p...


dfen5

Original Poster:

2,398 posts

212 months

Sunday 1st May 2016
quotequote all
surveyor said:
Doofus said:
surveyor said:
It's a mandatory scheme for small business's who occupy 1 building only

Exemption changed in last budget to £12k with a phased allowance up to £15k
I've just been negotiating on a lease for someone, and the key thing (for them) is that it's 100% relief at £6k, and it reduces to 0% at 12k.
I was deliberatly vague on the dates, as I wanted to check.. New scheme from 1 April 2017

Briefing paper at http://www.parliament.uk/briefing-papers/sn06247.p...
Is that pretty much guaranteed from 2017? If so that's great news for me, I can go for a slightly bigger premises in budget.


dfen5

Original Poster:

2,398 posts

212 months

Sunday 1st May 2016
quotequote all
My problem is the existing company told the council I was taking the place over before I'd actually signed anything. Rates bill comes in so I'll have to have a chat with the council as I'll be out of there soon.

I take it then both companies would not have to pay?

Chrisgr31

13,474 posts

255 months

Sunday 1st May 2016
quotequote all
dfen5 said:
Is that pretty much guaranteed from 2017? If so that's great news for me, I can go for a slightly bigger premises in budget.
Yes its pretty much guaranteed, HOWEVER there is also a revaluation that takes effect on 1 April 2017 and therefore the rateable values of the properties you are looking at might change, so take care.


Chrisgr31

13,474 posts

255 months

Sunday 1st May 2016
quotequote all
dfen5 said:
My problem is the existing company told the council I was taking the place over before I'd actually signed anything. Rates bill comes in so I'll have to have a chat with the council as I'll be out of there soon.

I take it then both companies would not have to pay?
No the Council will only charge one person, although in some cases Councils have been known to seek to joint and severally charge people if they have more than one person who could be the occupier.

Under rating legislation occupation of part is occupation of the whole, therefore if you are the only occupier of part of a building and the rest is empty you would pay rates on the whole. It gets a whole lot more complicated where you are sharing occupation. In theory the VO should split the assessment between the two parts.

There is a lot of attention being paid to ensure the correct property is being valued at present.