Advise needed on business rates for small business

[Rob Bartlett]

I own a 2000sq ft unit building with a 1500 sq ft mezzanine floor that we put in after we moved in. The company I run used to occupy the whole building but we now just occupy the mezzanine floor (first floor) and the ground floor is now completely empty. The rate-able value for the whole building is £16750 but payable at 40% so our yearly rate is aprox £8224.25 I want to divide the ground floor up into two separate self contained units and let them out. Am i right in saying that by doing this the company I run on the first floor and the two units downstairs would all have a rate-able value of less than £12'000 each and therefore none of us would be liable to pay business rates?

Am i correct in saying that having put in a mezzanine floor which is supported by the floor and not the walls does not affect or increase the rate able value of the property?

Are there any other legal stepping stones to subletting in a unit build that you own?

Many thanks

Rob

 

[WaveJumper]

Does the current business rates you pay include the mezzanine floor in other words have you been re-assessed since you installed it. What do you actual use this mezzanine floor for?

 

[Rob Bartlett]

Does the current business rates you pay include the mezzanine floor in other words have you been re-assessed since you installed it. What do you actual use this mezzanine floor for?

We have not been re-assessed since the mezzanine was put in. It went in just after the building was completed as part of a fit out. I was advised at the time that because the mezzanine is fully supported from the floor of the building that it would not be liable for rates. The mezzanine floor is used to run my current business, it consists of an office and a store room as well as a large landing area, we do some basic part assembly and packing on the landing area.

 

[WaveJumper]

When you reconfigure your space you will need to contact your local Valuation Office Agency so they can re-adjust their records, they may have a view on the mezzanine it can be a bit of a minefield area and open to all sorts of interpretation by your local office:

Installed in commercial or industrial outbuildings most are probably rate-able, but a lot of factors can come into play, however saying this if it is not physically tied to the fabric of the building (no bolting to portal frame steelworks or building into masonry of beams) and can easily be removed, re-erected and reused elsewhere then you can normally get away with it

Generally if it is freestanding, braced, relocatable and used for storage then it is not to dissimilar to pallet racking, and the rate-able value should not be affected. If the mezzanine is used to create offices with associated building services then the situation is not so clear cut, and open to interpretation by your local Valuation Office.

Hopefully you get the result your looking for and don’t need to go down the route of getting in a RICS qualified expert on the subject, good luck

 

[WaveJumper]

Rob sorry I also meant to add in answer to your original question, yes in theory if you carve up the space and then it is let to three separate companies and of course the areas have been re-assessed and fall under the threshold you have a good result

 

[Stedurham]

The mezzanine should be cheaper per m2 as it’s upstsirs check on gov website to make sure they have this right mine never