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Business Rates on 2nd FHL

 
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loveka



Joined: 19 Aug 2016
Posts: 54

PostPosted: Fri Sep 22, 2017 2:06 pm    Post subject: Business Rates on 2nd FHL Reply with quote

We pay business rates on our cottage, but have the relief so pay nothing.

We are thinking of buying another cottage. It is one building, but is split in 2. There is a 2 bedroom cottage and a one bedroom cottage. The current owner rents out the one bedroom, but we will rent out both. She pays separate council tax on the properties, even though it is one building with totally shared services.

We are worried about our liability for business rates, as I believe you can only get relief on one property. We are in Cornwall.

Any advice or knowledge would be great please! Thanks.
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Jonathan



Joined: 14 Aug 2014
Posts: 66
Location: Warwickshire

PostPosted: Fri Sep 22, 2017 2:50 pm    Post subject: Re: Business Rates on 2nd FHL Reply with quote

loveka wrote:
We pay business rates on our cottage, but have the relief so pay nothing.

We are thinking of buying another cottage. It is one building, but is split in 2. There is a 2 bedroom cottage and a one bedroom cottage. The current owner rents out the one bedroom, but we will rent out both. She pays separate council tax on the properties, even though it is one building with totally shared services.

We are worried about our liability for business rates, as I believe you can only get relief on one property. We are in Cornwall.

Any advice or knowledge would be great please! Thanks.


We have two lets all part of the same building, including our house - it's a large mill. We get full business rate relief on the two lets. I think they look at the business rather than each property individually.

Jonathan (in Warwickshire)
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ianh100



Joined: 10 Jan 2013
Posts: 459
Location: Sherborne Dorset

PostPosted: Fri Sep 22, 2017 3:16 pm    Post subject: Reply with quote

I have 2 properties that are attached but registered as separate properties. I pay rates on one and get 100% relief on the other.

This does depend on the value of the properties and we only just scraped under the value with this years changes.

It seems strange that your property is viewed as 2 if all services are shared. Could be worth talking with land registry. Do they have separate deeds?
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newtimber



Joined: 24 Nov 2012
Posts: 1505
Location: Brighton

PostPosted: Fri Sep 22, 2017 4:03 pm    Post subject: Reply with quote

ianh100 wrote:

It seems strange that your property is viewed as 2 if all services are shared. Could be worth talking with land registry. Do they have separate deeds?


This is the dreaded staircase tax that has been in the news recently...
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loveka



Joined: 19 Aug 2016
Posts: 54

PostPosted: Sat Sep 23, 2017 12:29 pm    Post subject: Reply with quote

So it seems a bit inconsistent!

We will have 3 in total. The business rates, if we have to pay them, would wipe out our income from the 2 new lets. Business rates seem to be a lot more than council tax. For example, our cottage paid council tax which was 1400. When we went onto business rates it was 2800.
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Giraffe



Joined: 26 Jun 2016
Posts: 309
Location: Cornwall, England

PostPosted: Sat Sep 23, 2017 3:26 pm    Post subject: Reply with quote

loveka, suggest you look at the government website on business rates. Everything is clearly laid out. My interpretation is that you will only get small business rates relief on your main holiday let. If you then have more than one holiday let you need to be careful that you don't lose this first set of rates relief. To quote from the website-

" IF YOU USE MORE THAN ONE PROPERTY

When you get a second property you'll keep getting any existing relief on your main property for 12 months.

You can still get small business rates relief on your main property after this if both the following apply:

. None of your other properties has a rateable value above 2,899
. The total rateable value of all your properties is less than 20,000 (28,000 in London) "

Hope this helps. By the way, you have no choice as to whether to pay council tax or business rates. If you make lets available (in England) for more than 140 days per year you are obliged to pay business rates.

As to whether your potential purchase is one or two properties will have been specified by your local council. Some take the view that if each let has its own entrance then they are separate properties. Have not heard of the staircase tax, interesting news newtimber.
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