business rates on property

[Batfink]

I am looking to buy or rent a business premises and I am confused about the business rates mentioned in the adverts when I look on Novaloca etc. What are they and how are they worked out?
Do you have to pay them on a plce you only use as storage?

[Maxf]

They are council tax for business properties.

www.voa.gov.uk

Find the property under the 2005 rating list section, then multiply the rateable value quoted by 0.462 to give the amount you will have to pay (ie for every £10k RV, £4,620 payable). There are a few circumstances when you will pay a bit less (if it is your only property and is a low value) or if it is subject to some other kind of relief - but as a yardstick the above is correct.

You have to pay rates on any occupied business property - occupation includes storage (even empty warehouses are 'occupied' if they are empty waiting for a delivery).

Edited by Maxf on Sunday 29th June 22:18

[Chrisgr31]

MaxF is broadly correct. If the RV is less than £10,000 (£15,000) in London and its your only business property you'll pay a slightly lower rate in the £, and if the RV is less than £10,000 anywhere you'll qualify for small business relief which gives you a sliding scale of releif according to the RV. Maximum relief is 50% at RV£5,000.

Empty rates legislation has recently changed and is a minefield. Most properties now get 3 months at zero rates on first becoming empty. Industrial property gets 6 months at zero. One the zero rate is over you pay full rates even if property remains empty.

However if you have a large empty rates bill take professional advice. The large agents have good teams offering advice on this.

The RV is suppossed to represent the rental value as at 1 April 2003, and there is a reval in 2010 which will base rates on values as at 1 April 2010.

[Digga]

Maxf said:

They are council tax for business properties.

Edited by Maxf on Sunday 29th June 22:18

Except that the rateable value (i.e. ratio) is disproportionately higher for business properties than private homes and they don't empty your bins.

In answer to the original post, business rates are red tape!

[Chrisgr31]

Digga said:

Maxf said:

They are council tax for business properties.

Edited by Maxf on Sunday 29th June 22:18

Except that the rateable value (i.e. ratio) is disproportionately higher for business properties than private homes and they don't empty your bins.

In answer to the original post, business rates are red tape!

Well business rates are a tax on business property and as you say you get nothing for them.