business rates

If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
Inazuma
Posts: 6
Joined: Mon Aug 08, 2016 10:17 am
Location: Wells, Somerset

business rates

Post by Inazuma »

Hi, can anybody give me some advice re business rates please? I have one small cottage for which I get business rates relief so pay nothing. Now I have set up another cottage on our farm which is bigger, and I have just picked myself up off the floor having received my business rates demand (2.6K).

Am I correct in thinking I will lose the relief from the first cottage now that I have a second? That seems to be my reading of the gov.uk info. I feel I am a bit over my head with this, and haven't found the people on the end of the phone very helpful so would appreciate advice from anyone with more experience. Thanks
newtimber
Posts: 1945
Joined: Sat Nov 24, 2012 5:57 pm
Location: Brighton
Contact:

Re: business rates

Post by newtimber »

Inazuma wrote:Hi, can anybody give me some advice re business rates please? I have one small cottage for which I get business rates relief so pay nothing. Now I have set up another cottage on our farm which is bigger, and I have just picked myself up off the floor having received my business rates demand (2.6K).

Am I correct in thinking I will lose the relief from the first cottage now that I have a second? That seems to be my reading of the gov.uk info. I feel I am a bit over my head with this, and haven't found the people on the end of the phone very helpful so would appreciate advice from anyone with more experience. Thanks
It depends on the rateable value of the 2 properties, but yes it is likely you will lose the relief if the rateable value of the smaller one isn't tiny. The rules are here https://www.gov.uk/apply-for-business-r ... ate-relief. And of course if they are part of your VAT registered farm business, you have to charge VAT and pay your Music Licence etc etc.
ianh100
Posts: 598
Joined: Thu Jan 10, 2013 4:37 pm
Location: Sherborne Dorset

Post by ianh100 »

Sorry for the late response.

We went through this with the revaluation a year or two back. We scraped in under the property value limit by about £50 so managed to retain SBBR on one of the properties and pay the standard rate on the other. Like you this could have hit us for an increase of over £2k in rates.

The SBBR is not permanent but has been rolled forward a number of times, we can't assume it will stay forever.
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