Small Business Rates Relief

Bungle2113

Hi all, I wonder if you can help, I am changing direction of my business meaning my offices (that are owned) are no longer suitable.  I have now rented these out to another business while I am trying to find suitable new premises to rent for myself.  
I cannot afford to pay the government for the privilege of having somewhere to work so I've been looking for somewher preferably with a rateable value under £12k, which is proving difficult, or at least below £13,500 so on the sliding scale, I do not have to pay too much when taking into account SBRR.
However, talking to a commercial agent, they said they are not sure if I will be eligible for SBRR anyway as I own another property, even though I am not using it for my business. I can't find any info on government websites and trying to get hold of anyone in the local council that can help hasn't happened.
Can anyone tell me how it works, please?  
The property that my business owns but rents out has a rateable value of £10,250.00 if that makes any difference?
Thanks in adavnce. 

MyRealNameToo

Presumably you've made your tenant liable for the business rates in your contract with them?

lincroft1710

As I understand it, it is the property or properties that are connected to your business which is/are relevant. So if you are renting out the offices, this is somebody else's business and usually the tenant would be responsible for any rates due.


As an aside rates have been payable on commercial property since the 19th century (or possibly earlier) SBRR is an extremely recent innovation which could easily be removed.

Bungle2113

MyRealNameToo said:

Presumably you've made your tenant liable for the business rates in your contract with them?

Yes, that is correct 

Bungle2113

lincroft1710 said:

As I understand it, it is the property or properties that are connected to your business which is/are relevant. So if you are renting out the offices, this is somebody else's business and usually the tenant would be responsible for any rates due.


As an aside rates have been payable on commercial property since the 19th century (or possibly earlier) SBRR is an extremely recent innovation which could easily be removed.

So are you thinking this could be yet another thing that this Labour government will look to change? 

lincroft1710

Bungle2113 said:

lincroft1710 said:

As I understand it, it is the property or properties that are connected to your business which is/are relevant. So if you are renting out the offices, this is somebody else's business and usually the tenant would be responsible for any rates due.


As an aside rates have been payable on commercial property since the 19th century (or possibly earlier) SBRR is an extremely recent innovation which could easily be removed.

So are you thinking this could be yet another thing that this Labour government will look to change? 

No, just pointing out that you cannot rely on SBRR forever. Although the money collected by councils for business rates is now sent to central government, it is distributed back to local councils, central government deciding in what proportion.      

SBRR1

Occupiers are responsible for paying Business rates, unless the agreement says otherwise.  You can own 10 properties and rent them out and occupy one yourself with a rateable value of say £10,000 and you're still be able to claim 100% rates relief

david_a

Sbrr is due to end March 2026

SBRR1

Retail Leisure and Hospitality Relief is in theory due to end in April 2026, but The Chancellor will probably announce a new (reduced!) percentage relief in her November statement as that will be a good political move. 

Small Business Rates Relief  (SBRR) is a much longer established relief, brought in first in 2005 and this to my knowledge is not ending in 2026.  It was passed into legislation in 2017 (as opposed to Regulation) and as it is a self-funding relief ...it costs neither  central  government or your local authority anything (honest!) as it is paid for by those companies with a Rateable Value above £51,000 at present.  It will stay in place for the foreseeable future I'm sure.