Business rates can be a significant concern for property owners, especially when the property sits empty. In most countries, including the UK, business rates are charged on non-domestic properties. This means that any property used for commercial purposes, whether it is an office building, a shop, a warehouse, or any other business premises, is subject to business rates.
However, what many property owners may not realize is that even empty commercial properties are still liable for business rates. This can come as a shock to property owners who may have assumed that they would not have to pay any rates while the property is vacant.
The rationale behind charging business rates on empty properties is to prevent property owners from leaving their buildings empty for extended periods of time. The government wants to encourage property owners to make their properties available for use and thus contribute to the local economy.
The current rules in the UK state that business rates are payable on most non-domestic properties, including empty properties, unless specific exemptions apply. This can present a financial burden for property owners who may be struggling to find tenants or buyers for their vacant properties.
The rates payable on empty properties are usually the same as those that would be payable if the property were occupied. This can be a significant expense for property owners, especially if they are already facing financial difficulties due to the property being vacant.
There are, however, some relief measures in place for property owners with empty properties. For example, certain types of properties may be exempt from paying business rates on empty properties for a limited time. This can include newly built properties, properties undergoing major renovation works, or properties owned by charities or community amateur sports clubs.
Property owners may also be eligible for a temporary relief scheme known as the Empty Property Rate Relief. This scheme provides a 100% relief on business rates for the first three months that a property is empty, followed by a 50% relief for a further three months. After this initial six-month period, the property owner will be liable for the full business rates unless they qualify for another exemption.
It is important for property owners to be aware of these relief measures and to take advantage of them where possible. Failing to do so could result in unnecessarily high business rates bills for empty properties.
There are also steps that property owners can take to reduce their business rates liability on empty properties. For example, if a property owner is actively marketing their property for rent or sale, they may be eligible for a 50% discount on their business rates bill. This discount applies for as long as the property is actively being marketed, but it is important to ensure that the property is genuinely available for rent or sale.
Property owners should also consider the option of appealing their business rates assessment if they believe that it is incorrect. This can be a complex process, but if successful, it could result in a significant reduction in the rates payable on the property.
In conclusion, business rates on empty property can be a significant financial concern for property owners. It is important for property owners to be aware of their obligations regarding business rates on empty properties and to take advantage of any relief measures available to them.
By understanding the impact of business rates on empty property and taking proactive steps to reduce their liability, property owners can minimize the financial burden of having vacant properties and contribute to the local economy by making their properties available for use.