Residential garage change of use = business rates?
Discussion
I am in the process of brain storming an idea; set up and sell "stuff" from home from the empty residential garage until the business has grown to require a larger unit.
However, it hit me that after applying for a change of use from residential use to either A1 or B8 use I may have to pay business rates and be potentially hit for CGT....
Has anyone been here before?
However, it hit me that after applying for a change of use from residential use to either A1 or B8 use I may have to pay business rates and be potentially hit for CGT....
Has anyone been here before?
Regarding Business Rates - you need to speak to your local authority to find out what their view is. Different Councils have different approaches.
Regarding CGT, there is a potential risk of CGT being chargeable on that portion of the property that has been converted. If the conversion is minor i.e. the garage can still bne used as a garage - or it can be used as a habitable room - then CGT is unlikely.
However, if it is converted to a bona fide workshop/office etc then CGT is more likely.
Regarding CGT, there is a potential risk of CGT being chargeable on that portion of the property that has been converted. If the conversion is minor i.e. the garage can still bne used as a garage - or it can be used as a habitable room - then CGT is unlikely.
However, if it is converted to a bona fide workshop/office etc then CGT is more likely.
Eric Mc said:
Not applying can cause problems later - especially if neighbours object.
What is the nature of the business you intend to operate from the premises?
Not really. You can still put in a retrospective application, and if they are going to object then they will anyhow. I'd suggest it depends on how much coming and going/noise there will be.... Plenty of people work from home whether it's a builder with a big garage or somebody with a home office. Not many of these will have bothered with planning.What is the nature of the business you intend to operate from the premises?
OP needs to make his own decision obviously....
surveyor said:
Eric Mc said:
Not applying can cause problems later - especially if neighbours object.
What is the nature of the business you intend to operate from the premises?
Not really. You can still put in a retrospective application, and if they are going to object then they will anyhow. I'd suggest it depends on how much coming and going/noise there will be.... Plenty of people work from home whether it's a builder with a big garage or somebody with a home office. Not many of these will have bothered with planning.What is the nature of the business you intend to operate from the premises?
OP needs to make his own decision obviously....
Most councils have no problems with "kitchen table" (as you call them) or "home office" type businesses operating from home. They can get a bit twitchy if the business has an impact on the residential aspect of the area, such as deliveries, noise, pollution, constant coming and going of customers, clients etc.
I know because some of my clients have had issues in these areas on occasions.
I know because some of my clients have had issues in these areas on occasions.
Eric Mc said:
Most councils have no problems with "kitchen table" (as you call them) or "home office" type businesses operating from home. They can get a bit twitchy if the business has an impact on the residential aspect of the area, such as deliveries, noise, pollution, constant coming and going of customers, clients etc.
I know because some of my clients have had issues in these areas on occasions.
It has to get pretty extreme for them to take action, and it is better to let sleeping dogs lie, as the moment you raise it with a planning department, the answer will be "no", whether that makes sense or not.I know because some of my clients have had issues in these areas on occasions.
Anyway, the OP can choose himself whether to take property advice from two surveyors (I am one also) or an accountant.
I've had a client inspected but they were happy with what he was doing. He has a small workshop over his garage.
I think they would get interested if you were doing something like scrapping cars or disposing of toxic waste.
The Capital Gains Tax issue is slightly different and that is something he should go into with his accountant.
I think they would get interested if you were doing something like scrapping cars or disposing of toxic waste.
The Capital Gains Tax issue is slightly different and that is something he should go into with his accountant.
Eric Mc said:
I think they would get interested if you were doing something like scrapping cars or disposing of toxic waste.
I totally agree. If he starts annoying the neighbours, they'll go to the council and he'll have to deal with it.If the use were scrapping cars or disposing of toxic waste they'll be on to the council faster than Usain Bolt down the 100m, but he says he's just "selling stuff", so I am pretty quiet and non-toxic.
Thanks for the replies so far, looks like I need to make a call to the planning officer.
The business will be an online pharmacy and planning permission/change of use will be required for the next stage to be approved and passed.
The garage is a standard brick/block built garage, 3mx6m, no entrance via the attached property, the up and over hormann door will need replacing with a roller shutter door and the side door to the garden will need replacing with a solid uPVC job. It will also need a sink with hot and cold water, a fridge and a freezer, a controlled drug cabinet, the floor sealed and carpet laid, a ceiling fitted and the walls plastered before fitting out with shelving and a workstation, I will also need an electric heater.
Core working hours 9am to 5pm, three inward deliveries twice daily in standard white transit size vans with average drop off duration of less than 3 mins each time, no outward signage or customer contact on a face to face basis is allowed by law-minimal residential disruption IMO. Twice daily outward mail.
I am a qualified pharmacist BTW.
Next question;
Should I have a separate electric and water meter installed whilst I'm at it or just how do I calculate a reasonable expense for HMRC?
The business will be an online pharmacy and planning permission/change of use will be required for the next stage to be approved and passed.
The garage is a standard brick/block built garage, 3mx6m, no entrance via the attached property, the up and over hormann door will need replacing with a roller shutter door and the side door to the garden will need replacing with a solid uPVC job. It will also need a sink with hot and cold water, a fridge and a freezer, a controlled drug cabinet, the floor sealed and carpet laid, a ceiling fitted and the walls plastered before fitting out with shelving and a workstation, I will also need an electric heater.
Core working hours 9am to 5pm, three inward deliveries twice daily in standard white transit size vans with average drop off duration of less than 3 mins each time, no outward signage or customer contact on a face to face basis is allowed by law-minimal residential disruption IMO. Twice daily outward mail.
I am a qualified pharmacist BTW.
Next question;
Should I have a separate electric and water meter installed whilst I'm at it or just how do I calculate a reasonable expense for HMRC?
pharmvrs said:
The garage is a standard brick/block built garage, 3mx6m, no entrance via the attached property, the up and over hormann door will need replacing with a roller shutter door and the side door to the garden will need replacing with a solid uPVC job. It will also need a sink with hot and cold water, a fridge and a freezer, a controlled drug cabinet, the floor sealed and carpet laid, a ceiling fitted and the walls plastered before fitting out with shelving and a workstation, I will also need an electric heater.
At present there is an exemption from business rates for small businesses where their only business property has a RV of less than £6,000. That relief is on a sliding scale from 100% relief at RV£1 to 0% relief at RV £6,000. At the present time there is a special offer on the relief which in theory expires in March 2016 but many suspect will continue where small business with one property have an exemption up to RV £6,000 and then the sliding scale cuts in tapering to 0% relief at RV £12,000.If you can say where your garage is I can have a stab at estimating a RV to allow you to do a budget baesd on the relief being taken away which gives a worse case scenario.
Its important to note that with a minor exception you can only have 1 business property to qualify for the relief, so if you have another property say so!
This is interesting as we have a new neigbour who the other neighbours have slight issue with.
Their house was only built a year ago, and it was noticed that where the agarage door should have been there was instead a double fronted glass window/door thing. In essence what was the garage on the approved plans has been converted into a hair salon. It's discrete enough to be fair, you wouldn't really know unless you knew, if that makes sense. I don't really care but the various people facing it (all "powerfully built directors") are not happy. Maybe they are jealous that the Hairdresser drives a Masterati Ghibli, and is probably not paying much tax either.
Their house was only built a year ago, and it was noticed that where the agarage door should have been there was instead a double fronted glass window/door thing. In essence what was the garage on the approved plans has been converted into a hair salon. It's discrete enough to be fair, you wouldn't really know unless you knew, if that makes sense. I don't really care but the various people facing it (all "powerfully built directors") are not happy. Maybe they are jealous that the Hairdresser drives a Masterati Ghibli, and is probably not paying much tax either.
I will be ringing the planning dept and VOA people this morning and will feedback their response.
Hairdressers in a garage eh.....
https://www.gov.uk/introduction-to-business-rates/...
Hairdressers in a garage eh.....
https://www.gov.uk/introduction-to-business-rates/...
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