Business rates for unoccupied property, also known as empty property rates, can be a significant cost for property owners and businesses These rates are imposed by local authorities in the United Kingdom and are based on the rateable value of the property In this article, we will delve into the intricacies of business rates for unoccupied property, how they are calculated, and what property owners can do to minimize the financial impact.
When a commercial property becomes empty, the owner is still required to pay business rates on the premises This is because empty properties are still eligible for certain services provided by local authorities, such as street cleaning and waste collection Business rates for unoccupied property can be a substantial financial burden for property owners, especially if the property remains vacant for an extended period.
The rateable value of a property is determined by the Valuation Office Agency (VOA) and is used as the basis for calculating business rates The rateable value is an estimate of the open market rental value of the property, assuming it was in a reasonable state of repair and could be let on the open market The exact calculation of business rates for unoccupied property can vary depending on the specific circumstances of the property.
In some cases, property owners may be eligible for exemptions or discounts on their business rates for unoccupied property For example, properties that are being redeveloped or are in need of major repair may qualify for a temporary exemption from business rates Additionally, small properties with a rateable value below a certain threshold may be eligible for small business rate relief, which can significantly reduce the amount of business rates owed.
Property owners should be aware of the implications of leaving their property unoccupied for an extended period Not only do they continue to be liable for business rates, but unoccupied properties can also attract vandalism, squatters, and other security risks business rates unoccupied property. It is important for property owners to take proactive measures to secure their empty property and mitigate these risks.
One option for property owners to reduce their liability for business rates on unoccupied property is to seek to occupy the premises with a temporary tenant By doing so, the property may qualify for a temporary exemption from business rates, as long as the tenant is using the property for a legitimate purpose, such as storage or security Property owners should consult with their local council to ensure that their temporary tenant arrangement complies with the eligibility criteria for business rates relief.
Another strategy for minimizing the impact of business rates on unoccupied property is to explore the possibility of appealing the rateable value of the property The rateable value determined by the VOA is not set in stone, and property owners have the right to challenge the valuation if they believe it is inaccurate By providing evidence of comparable rental values or the condition of the property, property owners may be able to secure a lower rateable value and therefore reduce their business rates liability.
Property owners should also be aware of the implications of the Government’s recent changes to business rates for unoccupied property As of April 2017, properties with a rateable value of £2,900 or less are no longer subject to business rates when they are empty This change was aimed at reducing the financial burden on small business owners and encouraging the occupation of vacant properties.
In conclusion, business rates for unoccupied property can be a significant financial burden for property owners and businesses Understanding how these rates are calculated, exploring exemptions and discounts, and taking proactive measures to secure empty properties can help minimize the financial impact of business rates for unoccupied property By staying informed and implementing effective strategies, property owners can navigate the complexities of business rates and protect their bottom line.