Commercial workshops rating query.

[Boosted Ls1]

Well, I bought a house with commercial workshops attached. I use them for domestic use. I was sent two invoices for 'storage premises', each for over £1000 per annum but they were accompanied by two documents cancelling them out. Had a visit from the council chap, showed him around and subsequently got a huge rates bill. I phoned them up and explained that I use the workshops non-commercially so they said they could cancel them as being commercial properties after another inspection. If they are empty, no rates are due.

Here are my questions.

Is it better to keep them as commercial entities from a financial point of view with regard to my property value? Also are the rated per square foot? Lastly, if I lose the commercial rating will I ever be able to get it back?

[chrisgr31]

Boosted Ls1 said:

Well, I bought a house with commercial workshops attached. I use them for domestic use. I was sent two invoices for 'storage premises', each for over £1000 per annum but they were accompanied by two documents cancelling them out. Had a visit from the council chap, showed him around and subsequently got a huge rates bill. I phoned them up and explained that I use the workshops non-commercially so they said they could cancel them as being commercial properties after another inspection. If they are empty, no rates are due. Here are my questions. Is it better to keep them as commercial entities from a financial point of view with regard to my property value? Also are the rated per square foot? Lastly, if I lose the commercial rating will I ever be able to get it back?

I would need more information to comment on this.

The legal situation is that all non-domestic property should be entered in the Rating List unless it is exempt (eg agricultural, religous etc). Non Domestic property is helpfully described as being property which is not domestic!

If you are using the workshops for storage of usual household goods and the workshops are in the curtilage of your home then the non-domestic assessment should be removed.

If the workshops are still commercial but vacant then they qualify for 100% empty rates relief.

If the workshops are domestic then they should be valued with the house in the Council Tax. Council Tax is banded, so it is possible that including the workshops in your council tax band will not affect the banding and hence the council tax payable.

You can check the council tax for the next band up and that will tell you whether an increase in the band will increase your total outlay or not.

The Rateable Value of a non-domestic property is suppossed to represent the annual rental value of the property as at 1st April 1998 assumming various statuttory assumptions. The procedure is that the Valuation Officer work out a rate per sq metre for properties of a certain type age and size in a particular locaton, and then apply that rate to each building adjusting where necessary.

If you get the property deleted from the Rating List it can back in as soon as it is returned to non-domestic use. Of more concern may be the loss of the commercial planning consent, and I do not know if non-use of the property could lead to its loss of planning consent.

Even if the non-domestic use is illegal a property is still assessed for non-domestic rates until enforcement action is taken under planning legislation.

The other point to consider is there may be errors in your entry in the List which make the entry invalid.

If you want more information feel free to email, non-domestic rating is something I know about having soecialised in it for 16 years or so! i am not at work for the next few days so try emailing me at my pistonheads user name @ aol.com.