Snail farms in Central London? Agricultural relief just got a whole lot stickier!
Westminster City Council has once again found itself tackling one of the more unusual tax avoidance trends in recent years — so-called “urban snail farms” claiming agricultural relief on commercial properties.
Council officers recently discovered crates of snails in two buildings on Old Marylebone Road, prompting Westminster City Council leader, Adam Hug, to describe the situation as “a vivid illustration of business rates avoidance based on a ludicrous notion.”
Agricultural relief – what about the “Snail Farm” loophole
Under existing rules, relief from business rates can be claimed for buildings used for agricultural purposes — which, in theory, includes heliculture (snail farming). In practice, however, local authorities across the country have seen empty offices and retail units being re-labelled as snail farms in attempts to secure exemption from non-domestic rates.
Westminster estimates it has lost around £370,000 to this type of avoidance and has already wound up four companies for non-payment of business rates. Investigations continue into others, with further enforcement and potential director disqualifications being considered.
Sticky snail farming and agricultural relief, it’s not a new phenomenon!
This isn’t the first time councils have encountered “creative” use of agricultural relief. Similar cases have been reported in Liverpool, Kirklees and Bradford, where investigators uncovered office spaces containing a handful of snails — sometimes as few as two per crate — far below the numbers required for a viable commercial operation.
In 2021, the High Court and subsequently the Court of Appeal ruled that a purported snail farm tenancy in Leeds was a “sham arrangement”, reinforcing that such tactics will not withstand legal scrutiny.
Agricultural Relief the wider issue
While the scale of these “snail farm” schemes might raise a smile, they highlight a serious issue for property investors and councils alike. Empty commercial properties remain liable for business rates, leading some owners to seek creative — and sometimes questionable — methods to reduce their liabilities.
As Westminster’s leader has called out, there may now be growing momentum for a general anti-avoidance provision for business rates, closing off these niche but costly schemes.
Agricultural Relief – RPGCC Comment
At RPGCC, we recognise that business rates and reliefs can be complex and sometimes counter-intuitive — especially as property markets and occupancy patterns evolve. Genuine agricultural and commercial property owners must ensure their claims are robust, well-evidenced and legally compliant.
Attempts to reclassify property use without clear commercial substance risk reputational damage, penalties, and in some cases, insolvency proceedings.
If you’d like advice on Agricultural Relief, business rates relief, or property tax compliance, RPGCC’s specialist team can help you navigate the rules safely — we promise a speedy service, no slow snail pace and there are certainly snails required!. Contact us or telephone us on 020 7870 9050.
