Business Rates - Split Unit

[CRI-Inv]

We have a small unit (5,000 sqft) that we use for manufacturing. My accountant has advised splitting the unit to take advantage of the increased small business rate relief so that we qualify for 100% relief.

Whilst I relish the idea of saving several grand, I'm a cynic, and have had run ins with the local council before. Accountant thinks that as we're already using two separate ltd companies anyway, the council would have no option but to give 100% relief.

Has anybody had experience of this before? I'm more than happy to physically split the unit with walls and separate entrances, but am unsure.

Any advice would be greatly appreciated.

 

[rach88]

Separating the units physically is a good start. And so long as each unit is actually occupied by the appropriate limited company, this works.

ie, you would need to ensure that Unit A is pretty much exclusively used for Company A business and Unit B for Company B business.

 

[rach88]

It also helps if you can put a lease in place to the second company.

For example if Company A currently owns or leases the whole property, draw up a simple lease agreement for the space used by Company B, with a red line around the relevant area.

 

[CRI-Inv]

Hi rach88, thanks very much for your swift response. Really appreciated.