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Small Business Rate Relief and Partnership

H&W partnership occupying bus premises and jointly owning a non domestic but not business property

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I'm in p'ship with my husband. We own a small holding with dwelling in our joint names on which there is a small business unit where we run our micro food manufacturing business. This was set up in 2014, has been seperately assessed for business rates since then and we got SBRR. The small holding is micro agricultural and the ag business (breaks even) is included in the partnership. 

Within one of the ag barns we have 5 stables for our own private use - no business - planning restrictions would make it virtually impossible to run any viable equestrian business.  The stables were constructed in 2012. We have just received a non domestic rates demand for the stables - rateable value is under sbrr level but over £2899. The council have now taken away our sbrr for our business unit (valued under £2899)and won't give sbrr for the stables treating them as a second business premises, on the basis that because we are a partnership for the business and joint owners of the stables we are the same rate payer. Our rates bill for both have been backdated to 2017.

We can solve the issue going forward by incorporating the business or going llp? but any views on our treatment for tax purposes as a partnership and individuals? We of course have seperate UTRs for the partnership and as individuals. Our business has been severally effected by Covid 19 as we rely on the tourist industry and smaller shops. We received the £10k grant but are concerned now that because we have retrospectively lost sbrr on our business property it will need to be repaid along with the huge rates demand.

apologies for length. Thanks in advance.

Replies (3)

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By Cheshire
07th Jun 2020 15:58

Changing your status now will not affect whether or not the grant will be reclaimed.

You really should not base your status and therefore tax position on one event. What does your Accountant say, bearing in mind they will have a handle on all your personal circumstances?

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By Tim Vane
07th Jun 2020 16:31

While understanding your desire to get a quick answer over a weekend where you might be worrying about the consequences for your future, there really is no substitute for waiting until Monday and speaking to your own accountant. Any advice we can offer you right now will not be reliable because we don't know your full circumstances (both personal and professional), your long term plans and your full prior history - all information that your own accountant will have to hand, and they will also know what further questions they need to ask you. By the time all this information has been teased out of you on this forum you'll probably be none the wiser and a quick call to your accountant after the weekend will easily be the best option.

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By Cheshire
07th Jun 2020 18:17

Ponygirl wrote:

I'm in p'ship with my husband. We own a small holding with dwelling in our joint names on which there is a small business unit where we run our micro food manufacturing business. This was set up in 2014, has been seperately assessed for business rates since then and we got SBRR. The small holding is micro agricultural and the ag business (breaks even) is included in the partnership. 

Within one of the ag barns we have 5 stables for our own private use - no business - planning restrictions would make it virtually impossible to run any viable equestrian business.  The stables were constructed in 2012. We have just received a non domestic rates demand for the stables - rateable value is under sbrr level but over £2899. The council have now taken away our sbrr for our business unit (valued under £2899)and won't give sbrr for the stables treating them as a second business premises, on the basis that because we are a partnership for the business and joint owners of the stables we are the same rate payer. Our rates bill for both have been backdated to 2017.

We can solve the issue going forward by incorporating the business or going llp? but any views on our treatment for tax purposes as a partnership and individuals? We of course have seperate UTRs for the partnership and as individuals. Our business has been severally effected by Covid 19 as we rely on the tourist industry and smaller shops. We received the £10k grant but are concerned now that because we have retrospectively lost sbrr on our business property it will need to be repaid along with the huge rates demand.

apologies for length. Thanks in advance.

Just for the usual....

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