One of the challenges faced by property owners and landlords is the burden of paying business rates on empty properties Empty properties are defined as commercial or non-domestic premises that are not being used This could be due to renovation, lack of tenants, or any other reason While it is a legal requirement to pay business rates on empty properties, there are ways to reduce or avoid this cost.
Business rates are a tax that is charged on most non-domestic premises, including shops, offices, and warehouses The rates are based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA) Property owners are required to pay business rates whether the property is occupied or not However, there are exemptions and reliefs available that can help reduce or eliminate the cost of business rates on empty property.
One way to avoid paying business rates on empty property is by applying for an exemption Properties that are empty for a certain period of time may qualify for an exemption from paying business rates In England, for example, properties that have been empty for three months or more are eligible for a 100% exemption for the first three months and a 50% exemption thereafter This exemption applies to most empty properties, including newly built properties, properties undergoing major renovation, and properties that are difficult to let.
Another option is to apply for a relief scheme Some local authorities offer relief schemes for empty properties in certain areas or for specific types of properties avoiding business rates on empty property. For example, there may be relief schemes available for properties in designated enterprise zones or properties that are listed buildings These relief schemes can provide significant cost savings for property owners and landlords.
It is important to note that there are different rules and regulations regarding business rates on empty property in each country within the UK Property owners should check with their local authority or the VOA to determine their eligibility for exemptions or relief schemes.
In addition to exemptions and relief schemes, property owners can also take steps to reduce their liability for business rates on empty property For example, landlords can consider demolishing or converting the property to a different use in order to qualify for a lower rateable value They can also explore options for short-term or temporary occupation of the property, such as allowing pop-up shops or events to take place on the premises.
Property owners should also be aware of their rights when it comes to challenging the rateable value of their property If they believe that the rateable value assessed by the VOA is incorrect, they can appeal the decision and request a reassessment This can result in a lower rateable value and a reduction in the amount of business rates owed.
In conclusion, while paying business rates on empty property is a legal requirement, there are ways to reduce or avoid this cost Property owners can take advantage of exemptions, relief schemes, and other strategies to minimize their liability for business rates on empty property By being proactive and exploring all available options, property owners can effectively manage the financial burden of owning empty property.