When it comes to owning or renting a commercial property, one key aspect that property owners need to be aware of is business rates These rates are charged on most commercial properties in the UK, and they can apply whether the property is occupied or empty In this article, we will delve into the topic of business rates for empty commercial property and shed some light on what property owners need to know about them.
Business rates are a tax that is charged on most non-domestic properties, including shops, offices, warehouses, and factories The rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA) The VOA assesses the rateable value by considering factors such as the size, location, and usage of the property.
One important thing to note is that business rates are charged to the person or entity that has a legal interest in the property This means that if you own a commercial property, you are responsible for paying the business rates, even if the property is empty The rates are used to fund local services such as schools, police, and road maintenance, so it is essential for property owners to understand their obligations in this regard.
When a commercial property is empty, property owners may be eligible for certain exemptions or discounts on their business rates For example, properties with a rateable value below a certain threshold may be eligible for small business rate relief, which can reduce the amount of rates payable Additionally, properties that are empty for a certain period may be eligible for empty property rate relief, which can provide a discount on the rates payable.
However, it is important for property owners to be aware that these exemptions and discounts are not automatic Property owners need to apply for them through their local council, and they may be subject to certain criteria and conditions Failure to apply for the appropriate relief could result in property owners being liable for the full business rates on their empty commercial property.
In recent years, there have been changes to the rules surrounding business rates for empty commercial property Previously, properties that were empty for more than three months would be exempt from paying business rates business rates empty commercial property. However, the government introduced changes in 2008 that eliminated this exemption Now, most empty commercial properties are subject to business rates, regardless of how long they have been empty.
The rationale behind these changes was to incentivize property owners to bring empty properties back into use By charging business rates on empty properties, the government hoped to discourage property owners from leaving their properties vacant for extended periods While these changes may have had some success in encouraging property owners to reoccupy their properties, they have also placed a financial burden on those who may be struggling to find tenants or buyers for their empty commercial properties.
One challenge that property owners face when it comes to business rates for empty commercial property is the issue of liability If a property owner is unable to find a tenant or buyer for their empty property, they may still be liable for paying the business rates This can be a significant financial burden, especially for small businesses or property owners who are facing financial difficulties.
There are some steps that property owners can take to help alleviate the financial burden of business rates on empty commercial property For example, property owners can seek professional advice to explore their options for reducing their rates liability They can also consider negotiating with their local council to arrange a payment plan or explore other forms of financial support that may be available.
In conclusion, business rates for empty commercial property can be a complex and somewhat contentious issue for property owners While there are exemptions and discounts available, property owners need to be proactive in applying for them to avoid being liable for the full rates on their empty properties Understanding the rules and regulations surrounding business rates is crucial for property owners to ensure compliance and to minimize the financial impact on their empty commercial properties.