Business rates with mixed use property

[IceBoy]

HI All,

I have seen a property which is a shop with flat above and wanted to add this to my small portfolio of BTL.

If the shop is empty am I liable to pay the business rates? How does this work? Could someone point me in the direction of some simple principles or rules? The WWW is full of complicated information on this subject.

Also how does the ratable value work? I know the shop next door is tenanted for £8k pa.

I don't want to buy a property and start occurring losses on day 1.

IceBoy

[soxboy]

Whilst the shop is empty you as landlord will be liable to pay the business rates, 3 months grace potentially but then 100% to pay. Expect approx 50p in the £ of Rateable Value, although no liability if RV less than £2600 or if building Listed.

RV based upon what the property was expected to have let for as at 1st April 2015.

[Keep it stiff]

You should be able to find the RV for the shop here:

https://www.gov.uk/correct-your-business-rates

[Chrisgr31]

Potentially you will also be liable for council tax on the flat above as well. If it been empty for some time that may be payable at twice the occupied rate. The local authority decide the rate of council tax on vacant property, there has been a push though to reduce the amount of long term empty residential so the government have given them the ability to charge more on it.

You can look up the Council Tax band and the Rateable Value on the VOs website at www.voa.gov.uk. Once you have the Council Tax band you can go to the local district council website to look up the amount of council tax that applies to that band.

The tenant next door may be paying £8,000pa in rent but you probably need to do a bit more work on finding out about that. How long have they been there, when was that rent set, was it pre-pandemic etc.

I know planning rules have been eased to make it easier to convert retail space to residential so it may be an option to create a second flat on the ground floor, or of course to separately let the retail from the shop.

[IceBoy]

Thank you All.... Appreciate the pointers.

On a separate note, I have seen a similar property which when I look up, says it is not on the rating list?

Does that mean no rates payable and if so why would that be? I know the property was totally refurbished a couple of years back.

Iceboy

[Chrisgr31]

IceBoy said:

Thank you All.... Appreciate the pointers.

On a separate note, I have seen a similar property which when I look up, says it is not on the rating list?

Does that mean no rates payable and if so why would that be? I know the property was totally refurbished a couple of years back.

Iceboy

Possibly was removed from the Lit when undergoing works. If you want to PM me I will have a look for it. Have some software to make it easier.