When it comes to owning commercial property, business rates are a significant expense that all property owners must account for. However, one particularly frustrating aspect of business rates is dealing with them on empty commercial properties. Many property owners find themselves facing high rates even when their property is vacant, adding an extra financial burden during difficult times. In this article, we will explore the intricacies of business rates on empty commercial property and discuss ways to navigate this challenging aspect of property ownership.
Business rates, also known as non-domestic rates, are taxes paid on commercial properties to local authorities. The rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency. This rateable value represents the rental value of the property as of a specific date and is used to calculate the annual business rates bill.
One of the biggest challenges property owners face is the requirement to pay business rates on empty commercial properties. In the past, property owners were granted an automatic three-month exemption from business rates when a property became vacant. However, this changed in 2008 when the government introduced new legislation that removed this exemption. Now, property owners are required to pay business rates on empty commercial properties unless they qualify for specific exemptions.
One exemption that property owners can apply for is the empty property rate relief. This relief allows property owners to claim a 100% exemption on business rates for a limited period, usually up to three months for industrial properties and up to six months for other types of properties. After the exemption period ends, property owners are required to pay the full business rates unless they qualify for other reliefs or exemptions.
Another exemption that property owners can consider is the small business rate relief. This relief is available to businesses with a rateable value below a certain threshold and can provide significant savings on business rates. Property owners should check if their property qualifies for this relief to reduce the financial burden of paying business rates on empty commercial properties.
In some cases, property owners may also be able to claim hardship relief if they are facing financial difficulties. Hardship relief is granted at the discretion of the local council and can provide temporary relief from paying business rates. Property owners should contact their local council to discuss their situation and see if they qualify for hardship relief.
Navigating business rates on empty commercial property can be a daunting task for property owners, especially during challenging economic times. However, there are steps that property owners can take to minimize the financial impact of paying business rates on empty properties. One strategy is to consider renting out the property on a short-term basis to generate income and qualify for the temporary exemption period.
Another option is to explore other uses for the property that may qualify for specific reliefs or exemptions. For example, converting the property for charitable use or using it as a community facility may make the property eligible for relief from paying business rates. Property owners should research all available options and consult with their local council to explore potential exemptions and reliefs.
In conclusion, dealing with business rates on empty commercial property can be a challenging aspect of property ownership. Property owners must navigate complex regulations and consider various exemptions to minimize the financial burden of paying business rates on empty properties. By exploring all available options and seeking guidance from local authorities, property owners can effectively manage their business rates and ensure that they are not overpaying on empty commercial properties.