Snookered by Tax on our Old Barn

Jame58rown_2

I have a barn in the immediate grounds of our house which we did up and converted to business use. We paid business rates, but got rural rate relief so hardly paid anything. The business was stopped last year and the barn is now empty. However last year the rural rate relief was stopped and after a three month rates holiday for the empty barn, we now have to pay £400 a month . The valuation Office say that the building could still be let as an office. I suppose it could, but it is so close to the house so not really viable to have a business that you were not running yourself so close to your home.

So it seems we are stuck with paying £400 a month rates until April when we get Gordons holiday on Business rate for empty property. So my question is, what should I aim to do with this building before business tax is due again. What attracts the least tax, should I convert it to a holiday let, try and get it back as just a storage barn, or burn it down, I just can't afford to go on paying £100 a week for an empty barn that used to cost us nothing.

Any ideas? Thanks in anticipation.

frank_collins

What kind of state is it in? You can go for disrepair if it's not great.

Airwolf1

Demolishing the barn would be better, as you could request it come out of the rating list. Can you class it as agriculteral use? Fill it up with ag stuff and then contact the VOA? Obviously the quality of the building may be looked at too - you wouldn't probably do this if it was of office standards. However, if it was classed as a "store" that would probably be cheaper than an office. Have you appealed to try to get the rateable value reduced? Have you applied for small business rates relief from your council?

If it was in a state of disrepair, the VO may look at the cost of making good, although generally it would have to be in a very poor state for it to be considered to come out of the rating list.

Debt_Free_Chick

Jame58rown wrote: »

should I convert it to a holiday let

Not a direct answer to your question, but you would have to apply to the local planning authority for change of use if you go down this route. Best to check it out informally with planning before go too far - if indeed, you decide to pursue this route.

Then you'll have refurb costs.

How was the barn previously classed? Agricultural? Is your land agricultural?