Business rates?

[LDN]

I am looking at buying a commercial property - rateable value £15,500.

I only need / want to use half the building and so if I buy the property; I would like to split the property vertically and rent the other half of the building to someone else. I would still be liable for the other halves business rates - even if it were completely empty; until someone moves in and then they pay the rates: correct? What are the typical ways of getting business rates down? I ask, mainly due to the fact that I will not even be using my half as a business! It's a studio that I want to use for my own projects.

[Keep it stiff]

Not always black and white. Sometimes you can split the RV with little more than a chalk line on the floor but often there would be an expectation of something physical. For example upstairs/downstairs would be simpler to split than left/right. Check your listing on the Valuations Office site, it is likely to be made up of several parts and if the proposed split ties up you might find the VO will deal with it by phone. Be mindful that a split RV will be slightly higher than the RV calculated as a whole.

[surveyor]

Look to try and get one half described as storage and premises - doubles the rate free period to 180 days. Six weeks reoccupation required to reset the exemption.

You may well also qualify for allowances - particularly if you have split.

Chris should be along later - he has more current knowledge than what is now my historic memories.

[Chrisgr31]

I have been in a 250,000 sq ft high bay warehouse which had a painted line right down the middle which marked the dividing line between one occupied, and one unoccupied assessment, however this was before 2008 when the rules on empty rates changed.

These days there are a number of VOs who seem to believe that every penny of rates is comimg out of their own pocket and if you get one of those god help you. Surveyor is right you could seek to ensure that one half is an industrial/warehouse use to ensure you maximise empty rate relief. However before you can claim any relief you'll need to occupy for 6 weeks. Doesnt take much to occupy though storing a few cabinets full of paperwork etc will work.

However the real danger particularly on that size of unit is that splitting the assessment could dramatically increase the total RV. If you drop me a PM with the address and post code I'll have a look at it for you, and pop some more detailed advice back in to the thread.