If 2 separate businesses operated from one commercial property, what would business rates implications be?

[Raf]

Good day everyone,

If I rent half of my property to someone else what would the business rate implications? (I qualify for the small business rates relief)

Thanks

 

[Devis Smits]

Hi

Its EPOS Accountancy:

1. Separate occupation = separate assessments​

• If the property is clearly divided (e.g. separate floors, offices, units, with independent access and facilities), the Valuation Office Agency (VOA) will usually treat them as separate “hereditaments”.
• Each business then gets its own rateable value and pays business rates separately on their portion.

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2. Shared occupation = single assessment​

• If the two businesses share space without clear division (e.g. same open office or retail floor), the VOA will usually treat it as one hereditament.
• In that case, business rates liability typically falls on:
  • The landlord (if it’s let as one unit), or
  • The main occupier (if one business is deemed the “primary occupier”).

 

[Devis Smits]

Should have added this too:

Small Business Rate Relief (SBRR) impact​

• If split into separate assessments, each business might be able to claim Small Business Rate Relief (if their individual rateable values are below the threshold).
• If kept as one large assessment, they could lose access to relief.

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4. Liability​

• Rates are payable by the occupier of the hereditament (who has beneficial occupation).
• If both businesses are listed under a single assessment, they may need to agree privately how to split the costs (the council only bills one party).

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5. What to do​

• If you want separate billing, you (or the landlord) should ask the VOA to review the property’s rating assessment to see if it can be split.
• This usually requires showing that each business occupies self-contained, exclusive areas.

 

[Raf]

Should have added this too:

Small Business Rate Relief (SBRR) impact​

• If split into separate assessments, each business might be able to claim Small Business Rate Relief (if their individual rateable values are below the threshold).
• If kept as one large assessment, they could lose access to relief.

---

4. Liability​

• Rates are payable by the occupier of the hereditament (who has beneficial occupation).
• If both businesses are listed under a single assessment, they may need to agree privately how to split the costs (the council only bills one party).

---

5. What to do​

• If you want separate billing, you (or the landlord) should ask the VOA to review the property’s rating assessment to see if it can be split.
• This usually requires showing that each business occupies self-contained, exclusive areas.

Thank you Davis, that's answered my question.