'Bogus' snail farms set up to avoid business rates

Westminster City Council discovered "bogus" snail farms in two central London offices, part of an investigation into tax avoidance schemes. Council officials reported that unscrupulous traders falsely claimed to run agricultural businesses to evade business rates, which are exempt for viable commercial operations. The council estimates a loss of £370,000 due to this scheme, implicating building landlords as complicit in the fraud. To date, four such "snail farms" have been liquidated for non-payment of rates, and legal processes are underway for two more. Council leader Adam Hug called for new legislation allowing councils to quickly shut down such scams without lengthy court proceedings.

He proposed a general clause on business rate avoidance to prevent these activities from recurring. The Ministry for Housing, Communities and Local Government has been approached for comment on the issue. The Valuation Office Agency is responsible for determining property exemptions and assessing legitimate agricultural use, making it unlikely these premises would qualify.