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Rented lockup..... business rates?
owelly - 24/2/19 at 09:56 AM

I'll ask in here as Google has me chasing my arse!!
In January, I signed a 12 month lease for a lockup. It was formerly a farm barn which was converted to two industrial units, then converted back into one large barn. The previous occupant used it to keep his stationary engines in.
My lease agreement states the property is "for storage of 8 vehicles and the licensees property". It also states "not for business use".
Yesterday I received a bill for business rates. The bill is for the period 10th January to end of March and is for just shy of £500!!! The annual rental on the place is £2500 which I pay monthly.
Along with the bill came a form to claim small business relief on the property which due to the value of the property would be a 100% discount....but as I'm not a business, and my lease says I can't use it for a business, I assume I can't claim this?!
As I understood it, I was renting the unit for "domestic storage" so there would be no rates to pay (as was the case with my previous rented containers). Apparently, the unit is classed as " non-domestic" so is rateable.

Any suggestions and/or advice would be most welcome before I get on the phone tomorrow to the property owners and the tax bods.
Cheers!!


kenton - 25/2/19 at 01:23 PM

I rent out business property also lockups some of which are used for non business storage, my tenants have filled out the form and get the 100% relief.


owelly - 25/2/19 at 07:54 PM

I've filled out the forms on-line so waiting to hear back.... Weirdly, I can't find any reference to who can claim the SBRR (Small Business Rate Relief). It stipulates the properties that it applies to, but not who occupies them.


Jamesc - 26/2/19 at 09:18 PM

I have to pay business rates on my private workshop, of which 100% is relieved thankfully.

When I called the council to tell them I didn't run a business, I was told that if I didn't want to pay business rates then I could pay council tax instead... I declined! Seems it doesn't matter what happens in the unit, if it is a commercial property (i.e. not a house!) then you have to pay.