How far back can business rates be backdated?

Marc2018

Free Member
Jun 21, 2018
3
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I have a substantial workshop attached to my house which I use for a B1 type business. I have owned it for 8 years, and it was used as a workshop by previous owners for 80 years before that.

It has never been registered as a business property in all that time, so we have treated it as a home business and don't pay rates.

However I am now selling, and for several reasons it would be beneficial if the B1 business use status was regularised, so I am considering registering it for rates with the council.

My question is, if it is found to have a rateable value above the small business rate relief threshold, can the council hit me for backdated rates for the last eight years, or is there a cut off period?

Any insight appreciated.

Thanks.
 

WaveJumper

Free Member
  • Business Listing
    Aug 26, 2013
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    I have a feeling this may not be straight forward, previously I thought it was 8 years, however I am sure that if a unit / premises has never been valued before but has been in occupation say for a considerable time there is no fixed time period as to how far the local authority may go to collect business rates arrears.

    It could of course depend on your local council / valuation office. So I would defiantly get some proper professional advice from a (RICS) surveyor who specialises in this area. You maybe are opening a real can of worms here. Wish I could be of more help, best of luck with this one.
     
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    kulture

    Free Member
  • Aug 11, 2007
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    You should be very careful and look at all the consequences. If the property becomes mixed use residential/business then it becomes harder to sell. The potential buyers have a problem getting a mortgage as many providers will not lend to a mixed property.

    Then there may be a capital gains tax implication. This tax is exempt on residential if it is your main home. But not on the business portion.
     
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