Business rates on unoccupied property, also known as empty property rates, can often be a cause of concern for property owners These rates are a tax levied on non-domestic properties in the UK, including commercial and industrial buildings When a property is unoccupied, the owner is still required to pay business rates, which can sometimes be a financial burden In this article, we will delve into the details of business rates on unoccupied property, including how they are calculated and some potential exemptions that may apply.
Business rates are calculated based on the rateable value of a property, which is assessed by the Valuation Office Agency (VOA) The rateable value is an estimate of the annual rental value of a property at a certain point in time The business rates are then calculated by multiplying the rateable value by the appropriate multiplier set by the government The multiplier is updated annually and varies depending on the location of the property.
When a property becomes unoccupied, the owner is still liable to pay business rates for a certain period of time This period is usually three months for commercial properties and six months for industrial properties After this initial period, the owner is required to pay the full rateable value of the property as business rates, unless certain exemptions apply.
One common exemption for unoccupied property is when it falls under the small business rate relief scheme This scheme allows eligible businesses with a rateable value below a certain threshold to receive a discount on their business rates If the property qualifies for this relief, the owner may not have to pay business rates on the unoccupied property or may receive a partial reduction.
Another exemption that may apply to unoccupied property is the listed building exemption business rates unoccupied property. If the property is a listed building, the owner may be exempt from paying business rates during the period it remains unoccupied Listed buildings are considered to have historical or architectural significance and are protected by law This exemption provides some relief to property owners who may be struggling to find tenants for their historic properties.
In some cases, property owners may be able to make a case for hardship relief if they can demonstrate that paying business rates on an unoccupied property would cause them financial hardship This relief is granted at the discretion of the local council and is not automatically applied Property owners must provide evidence of their financial situation and explain why paying business rates would be a burden.
It is important for property owners to be aware of the rules and regulations surrounding business rates on unoccupied property to avoid any surprises Failure to pay business rates on unoccupied property can result in penalties and legal action by the local council Property owners should stay informed about any changes to the business rates system and seek professional advice if they have any concerns or questions.
In conclusion, business rates on unoccupied property can be a significant expense for property owners, but there are certain exemptions and reliefs that may apply Property owners should familiarize themselves with the rules and regulations surrounding business rates to ensure compliance and avoid any unnecessary financial burden By staying informed and seeking professional advice, property owners can navigate the complexities of business rates on unoccupied property and protect their investment.