Business Rates

[Glen3488]

Hi i have been reading up on business rates and to be honest im more confused than i was when starting, any help or advice would be greatly appreciateed.

I run a small company, and want to move to larger premises, found somewhere that is perfect, however the rateable value is £24K so my business wouldnt qualify for rate releif, however i work closely with another company that again is a small company and would love to move in with us we would be separated by being on different floors!

would we both qualify for the business rate releif at £12k each and therefore resulting in neither of out companies paying business rates?

Thanks in advance.
G

[surveyor]

If they are truly separate businesses and floors are independent of each other yes

You would need to split the assessments, which would cause the overall tv to increase, then each business would get a bill and can apply for relief if it is available

[Glen3488]

Thanks for the reply, the companies are 100% separate, the floors are separate but there is stairs which each have access to, would this affect the rebate?

Thanks again.
G

[surveyor]

No stairs are fine. Can the floors be accessed independently of each other?

[anonymous-user]

Would this be your sole premises? If so, then you’d still qualify for rates relief at £24k.

It’s £0.49p in the £ you’d pay so effectively you’d save 50%.

Obviously if there was a way of reducing the RV to sub £12k then you can mitigate 100%.

[Chrisgr31]

As others have said you would have to separate the assessments, and the fact both have access to the stairs shouldn't matter.

Its likely that splitting the assessment each floor will be greater than £12,000 abut probably no more than £13,000

[Storer]

I suspect the rating office will want to see separate rental agreements to prove they are separate businesses.
Also, if one moved out the other would become liable for the rates if the building isn’t split for rents.

[loafer123]

JonnyJustice said:

Would this be your sole premises? If so, then you’d still qualify for rates relief at £24k.

It’s £0.49p in the £ you’d pay so effectively you’d save 50%.

Obviously if there was a way of reducing the RV to sub £12k then you can mitigate 100%.

Sorry, Jonny, but I think you have misunderstood how rates work.

If the rateable value is £24k, he will pay just under £12k...if he were a bigger business, he would pay just over £12k. No one pays £24k.

You are right that he would pay nothing if the RV were £12k or below. There is a sliding scale between £12k and £15k.