Business rate relief - 3rd unit

[Radebe]

Hi all,

Just wondering if anybody could lend a bit of advice as the stuff I've read on the googles so far has been a bit fuzzy. I have a question in relation to business rate relief.

I run my own business and we're currently looking at taking on a 3rd unit as a showroom. Currently we have a warehouse/office and a storage compound. We receive 100% rate relief on our warehouse (£9k), and 50% relief on our compound (£3k).

My question is in relation to our new unit. It's a ground floor retail unit with a two-bed apartment on the first. We have negotiated with the landlord that we can privately sublet the apartment (as it is surplus to requirements) and split the retail unit apart.

I have set up a new limited company to handle the rent and retail sales on the new unit. The new company will sub-let the apartment to a private individual and handle the retail income (probably quite minimal, the main purpose of the unit will be a showroom for our products/services). Is it possible to claim rate relief through my secondary company as it will be the leaseholder on the whole property? (whilst trading under the name of my main business)?

I have read on my a few websites that an additional unit may be subject to a years relief on the rates - can anybody confirm this?

Thanks in advance.

[surveyor]

I spent some time looking at this and could not see any anti-avoidance language that would stop the 2nd ltd company claiming an exemption.

Rating legislation is notoriously complicated though, and it is possible that I have not got to the final answer.

[Radebe]

surveyor said:

I spent some time looking at this and could not see any anti-avoidance language that would stop the 2nd ltd company claiming an exemption.

Rating legislation is notoriously complicated though, and it is possible that I have not got to the final answer.

Thank you. Could I supply anymore information that may lead you to a more accurate conclusion?

[Chrisgr31]

There are companies around that are specifically investigating fraud around business rate relief. When I remember I will ask those who are much more knowledgeable on the subject than I am. The question came across my desk the other day in connection with a company my employer owns. Certainly the basic legislation implies that you would be ok, however whether there is any secondary legislation I am not sure.

[fridaypassion]

You can have one in the Ltd one in your name and one in the wife's name perfectly legitimate. It was the rates guy told me to do that when we had split premises.