way in which to get under the business rates exemption?

[Bunting2010]

Hi

Ltd Company 1 - owned by my wife and myself and own a commercial building.
Ltd Company 2 - owned by my wife - runs a business
Company 2 rents the basement + 1st floor of the commercial building from Company 1.

The rateable vaule for the business company 2 is 12,800.00 - so above the threshold for full business relief.

Business Company 2 only really uses the 1st floor - The basement area is redundant but fully fitted out & ready for use. Could I take the basement out from the lease, to bring her under the 12,800 ratable vaule? would VOA accept this.

The basement would then be used by company 1 as storage. The 1st floor leased to company 2 for business use.

1st floor & basement would share the same toilet, water facilities, electric meter and entrance door. I suppose if used for stroage space, factiles such as toliet wont be needed.

Thanks

[Chrisgr31]

Whats the rate bill? If the property is in England its a sliding scale for relief between £12 and £15k. So you get 75% relief I think. So rate bill is £1,600pa? You may struggle to persuade he VO it is split as you suggest, although tell the Council they may ask the VO to split it. You will need a lease.

Relief isnt available for vacant properties so need to keep both occupied.