When it comes to owning an empty commercial property, one of the key considerations for business owners is the payment of business rates on vacant property Business rates, also known as non-domestic rates, are taxes that are charged on most non-domestic properties, including shops, offices, warehouses, factories, and other business premises These rates are calculated based on the rateable value of the property and are used to fund local services provided by the local authority.
For vacant properties, business rates can be a significant financial burden for property owners Not only are they required to pay utilities, maintenance costs, and potentially security costs for an empty property, but they are also expected to pay business rates on top of these expenses This can often lead to financial strain for property owners, especially if the property remains vacant for an extended period of time.
So, what are the rules and regulations surrounding business rates on vacant property? And are there any exemptions or relief schemes in place to help property owners mitigate the costs? Let’s explore these questions in more detail.
Under the current legislation, property owners are required to pay business rates on vacant properties unless the property qualifies for an exemption or relief scheme The rateable value of the property is used to determine the amount of business rates that must be paid, and this value is set by the Valuation Office Agency (VOA) based on the rental value of the property.
If a property remains vacant for a short period of time, property owners may be able to apply for a temporary exemption from paying business rates This exemption period varies depending on the location of the property, with some areas offering up to three or six months of relief However, it’s important to note that this exemption is only temporary, and property owners will be required to pay business rates again once the exemption period ends.
In some cases, property owners may be able to apply for empty property relief, which can provide longer-term relief from paying business rates on vacant properties business rates vacant property. This relief scheme is designed to support property owners who are struggling to find tenants for their empty properties However, it’s worth noting that empty property relief is not automatic and must be applied for through the local authority.
Another option for property owners is to apply for a hardship relief scheme, which can provide financial support to property owners who are experiencing financial hardship due to the payment of business rates on vacant property This scheme is typically designed for small businesses or property owners who are facing significant financial difficulties and can provide a percentage reduction in the amount of business rates owed.
Alternatively, property owners may be able to apply for a charitable or community use relief scheme if they are using the property for charitable purposes or for the benefit of the local community This relief scheme can provide a substantial reduction in the amount of business rates owed, making it a viable option for property owners who meet the eligibility criteria.
It’s important for property owners to stay informed about the rules and regulations surrounding business rates on vacant property, as failing to pay these rates can result in penalties and legal action from the local authority By exploring the various exemption and relief schemes available, property owners can potentially reduce the financial burden associated with owning an empty commercial property.
In conclusion, business rates on vacant property can be a significant financial burden for property owners, but there are options available to help mitigate these costs From temporary exemptions to relief schemes and hardship relief, property owners have various avenues to explore when it comes to reducing the amount of business rates owed on vacant properties By staying informed and proactive, property owners can navigate the complexities of business rates and find a solution that works for their individual circumstances.