Retail business rates discount- nobody will give me any answers!! 2 properties

Zig33

I really hope someone can help. 

I have a bakery business in a commercial unit. Rateable value is £6700 and we do not pay any rates as we get small business relief.

Now we want to sign an additional lease on a shop, again this has a rateable value of £6700. Now that I will have 2 properties (unit is in my name shop will be in business partners, we are both directors) I am not sure what my business rates will be. 

I have spoken to the council and they say they can’t tell me what I will pay.  they told me that I can only find out when I’m actually in the property and apply online. We haven’t signed the lease yet (probably tomorrow) but I  need these figures for a start up loan application. Online I have found info about a 75% retail business rate discount and also that I will have a delay of 12 months change in rates on the existing property.

I guess my hope is shop- only pay 25% of the business rates 

unit- 12 months delay then full business rates?

There seems to be very little info on the retail discount and how this changes if you have another property. 

Thank you if you have any helpful information. Can’t believe the council can’t tell me! 

lincroft1710

If the unit and shop are different businesses then both would get the discount.


If they are the same business then the unit will continue to receive the same discount for 12 months, but after that no discount will be applicable as the shop has an RV exceeding £2899. The shop will not get any discount at all


https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief

Zig33

Thank you for replying. They are for the same business. I had read about a 75% retail business rates reduction for shops and cafes would that definitely not apply to the new unit? 

lincroft1710

It looks like one of those problematic areas, as government guidelines say what your business is mainly used for (not what the premises are used for). So it could be argued your business is mainly a bakery rather than retail. Only the council can decide this and if your signing the new lease is dependent on some form of rates relief I would contact the council ASAP.

NB this specifically refers to the 2024/25 financial year, so there is no guarantee that the same or any relief would be available for subsequent years. A change of political party in power could see such relief abolished