Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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Still got my eye out to purchase a lockup of some sort. Come across an old tyre place.
http://www.rightmove.co.uk/commercial-property-for-sale/property-45752360.html
How does it work on commercial propery if i was using this for personal storage? What do you have to pay out, i.e. on my house i have to pay council tax.
Can't afford this at the moment, just wondering how it works.
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AndyKent
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Registered: 3rd Sep 05
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You pay rates which is a tax based upon the rateable value of the premises. You pay it whether it is being let or not.
Can run into the thousands, hence why commercial property appears cheap on the market compared to residential.
[Edited on 26-05-2014 by AndyKent]
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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You'd get small business rates relief though
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spencer88
Member
Registered: 6th Oct 08
Location: cornwall
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RV is 0.48 times the rent.
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
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Pretty sure it's not.
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spencer88
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Registered: 6th Oct 08
Location: cornwall
User status: Offline
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Funny as that is what we have always used. That's not for small business relief though, that is general commercial premises.
The rates bill is calculated by multiplying the rateable value of the property by the 'rate multiplier'. There are two rate multipliers for the 2014-2015 financial year. The Standard Multiplier is 0.48.2(48.2 pence in the pound) or the Small Business Rate Multiplier of 0.47.1 (47.1 pence in the pound). So a ratepayer who occupies a property with a rateable value of £20,000 would have an overall bill for £9,640.00(£20,000 x 0.482).
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spencer88
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Registered: 6th Oct 08
Location: cornwall
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Apoligies if confusion caused in my first post wording. The figure payable in elation to RV is 0.48 times the rent.
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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Are you sure the business rates arnt. 0.48 of the rateable value.
Basing business rates on rent is easily fiddled.
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spencer88
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Registered: 6th Oct 08
Location: cornwall
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quote:
Originally posted by Gary
Are you sure the business rates arnt. 0.48 of the rateable value.
Basing business rates on rent is easily fiddled.
That is what I was wording, yes 
Basing business rates on rent is easily fiddled, but the rateable value is based upon the rental value at the last antecedent date. But again, that can be altered if the VOA think the circumstances have changed.
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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On the same page. Basing rates on rent was confusing me
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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I would imagine you'd get 100% relief with that - it surely must be ratable under £6k which makes it exempt from payment until March 15. Not sure what will happen after that.
https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief
Don't forget - a property with a ratable value of £20k is enormous and certainly not something you'd really be taking on unless you had enough people to fill it.
This one has a ratable value of £15k so you'd pay about £7k but its a bit of a castle!
http://www.rightmove.co.uk/commercial-property-to-let/property-44044925.html?premiumA=true
[Edited on 28-05-2014 by Ian]
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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Also think about how you're going to finance it, assuming mortgage? If so it'll need to be a commercial mortgage, average of about £3k in upfront fees, plus rates aren't amazing. Some of the big banks offer them, Barclays etc, there are also brokers who do so too.
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Andrew
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Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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I wouldn't be financing something like this as it's not something i need, just something i'd like. 10k is not a lot of money these days.
This particular place took my eye as i've driven/walked past it for the past 25 years as a small tyre place.
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jrsteeve
Member
Registered: 3rd Apr 02
Location: Manchester
User status: Offline
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My bad, clicked on Ian's link rather than yours. Just check the length of the lease in the legal pack.
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JM_16v
Member
Registered: 17th Oct 05
Location: Essex Drives: GLC63S
User status: Offline
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you can find the rentable value for bussiness rates on any property here
http://www.2010.voa.gov.uk/rli/
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