Business rate relief?

[CornerShopDev]

Hoping someone can point me in the right direction. I am looking to take a commercial lease property approx 650sq ft for approx £21-25 per sq foot with few quid for the service charge.

can someone explain business rates for something like this to me ? I am based in Essex. I currently already own a retail store with a rentable value of approx 5k that receives 100% rate relief from the same council.

So if I was to take on this office space for IT services, what would my rates be please? I am looking to put the lease into a limited company that I already have that hasn’t been utilised for a while. I am hoping this ltd route helps me????

my current retail premises is in my personal name. This 2nd property would not form part of my existing retail business.... so does the new office still class as a second property?

 

[WaveJumper]

You may find the answer to some of your questions here
https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief

 

[CornerShopDev]

Thanks that’s helpful but doesn’t quite answer what I am trying to figure out.

What I am trying to figure out is if a person is allowed to have more than one business with rent relief? Ie I have two commercial units, one retail, one IT services (ie separate businesses) with their own limited companies.... does one have to be treated as a main premises for the business owner ???

also the 12000, 15000 thing is a bit confusing tooo.

 

[kulture]

The link supplied is clear. If a business owns two properties then it cannot get relief on the second and looses the relief on the first after 12 months. There are exceptions but they would not apply as the RV of your properties is likely too high.

That said if as you say each property is rented by a seperate Ltd Company, then each company is a legal entity and as such only has one property. So each company would be eligable for releif IF THE RV is lower than £12,000.
If the RV is betwwen £12,000 and £15,000 then the relief drops from 100%at 12,000 down to 0% at 15,000 and is scaled in proportion between the two. The link gives examples.

 

[CornerShopDev]

It's still not that clear mate. Might be for people who have experience with this stuff but for those of us who have been freeholders and avoid rents and rates like the plague. Its very grey if you ask me! More questions....

1) So if I pay £14,500 rent and RV is £14500. 0-12000 is at 100% rent relief? and 12000-14500 is at pro rata rate???? of 2500 / 3000? Or is this rate applied to the entire RV? ie 14500
2) if my current freehold commercial premises is in my personal name but the "business" operates there as limited company does this still apply as a separate legal entity from the proposed new business? which will be in a new limited company????

Thanks for any advice. I did search the forums and this specific information is quite hard to find here and anywhere on the interwebs.

What you get
You will not pay business rates on a property with a rateable value of £12,000 or less.

For properties with a rateable value of £12,001 to £15,000, the rate of relief will go down gradually from 100% to 0%.

Examples

If your rateable value is £13,500, you’ll get 50% off your bill. If your rateable value is £14,000, you’ll get 33% off.

If you use more than one property
When you get a second property, you’ll keep getting any existing relief on your main property for 12 months.

You can still get small business rate relief on your main property after this if both the following apply:

• none of your other properties have a rateable value above £2,899
• the total rateable value of all your properties is less than £20,000 (£28,000 in London)

 

[Darren_Ssc]

Your local council council will give you a definitive answer, since it is they who will be sending the bill.

 

[WaveJumper]

If you use more than one property:
When you get a second property, you’ll keep getting any existing relief on your main property for 12 months.

You can still get small business rate relief on your main property after this if both the following apply:

• none of your other properties have a rateable value above £2,899
• the total rateable value of all your properties is less than £20,000 (£28,000 in London)

Have a look at previous discussions on this topic you may well end up spending more money on running two 'separate companies' than the actual money you are trying to save.

https://www.ukbusinessforums.co.uk/...perties-trading-under-different-names.398350/
https://www.ukbusinessforums.co.uk/threads/small-business-rate-relief-on-two-ltd-cos.391049/