Snail farms discovered in London offices in tax avoidance scheme

Westminster City Council officers found crates of snails in empty central London offices whilst investigating property owners allegedly avoiding tax. The owners claimed they were running “snail farms” to exploit business rate exemptions. There is a tax law loophole whereby agricultural buildings and fish farms are exempt from business rates if they are viable commercial firms.

The council described the scheme as “ludicrous” and called for a general clause against business rates avoidance to stop similar tactics. It has asked the Insolvency Service to consider banning directors involved from future company directorships.

The council estimates it has lost around £368,000 due to this avoidance scheme. Four such “farms” have already been liquidated for non-payment of levies and legal action is underway to wind up two more.