Small Business Rate Relief, Two Sites

[Mpg]

Hiya Folks

I'm after some info regarding SBRR.

1 LTD but two sites under different names and essentially trading separately. (same bank account (Although that can be sorted and another opened)).

Essentially Ltd has the leases to 2 properties. But they are run as separate Restaurants with separate trading names.

I've just got off the phone with the LA and explained that the previous tenant got 100% relief on one site. It then transpired that although it was under 1 LTD company he had an agreement with the (sublet tenant*) That they would essentially become a partnership and looks like their trading name was put onto the rates.


*LA wont allow sublets so they had to form a Partnership so it wasn't actually a sublet


So do I set up another LTD or can I just add a trading name.

The young sounding lad in the LA said a personal name would do??

Anyone done this or similar


Any Ideas

 

[rach88]

The two businesses have to be separate legal entities. If you are keeping the businesses in the same limited company, with just different trading names, that won't be enough to claim SBRR.

So if you want to be able to claim SBRR you really need to set up a second limited company for the second restaurant.

 

[Mpg]

The two businesses have to be separate legal entities. If you are keeping the businesses in the same limited company, with just different trading names, that won't be enough to claim SBRR.

So if you want to be able to claim SBRR you really need to set up a second limited company for the second restaurant.

Thanks

I may fall foul of the no subletting clause in the lease then though..

Claiming SBRR is worth about £3.5k Per year so easily covered by the increase in accountancy fees.

He's going to be able to buy a Boat at this rate

Would just having a new LTD Co be it or . new Vat, Bank account etc

 

[ecommerce84]

Could you have the lease reassigned to the new Ltd company? It may cost a few bob but would save in the long run.

As a new Ltd company would be a separate legal entity, you would need a separate bank account and a separate vat number.