When a commercial property sits empty, it can create a financial burden for the owner Not only are they missing out on potential rental income, but they also have to deal with the cost of maintaining the property while it remains vacant On top of all that, there is another expense that many property owners may not be aware of – business rates on empty commercial property.
Business rates are a tax that business owners have to pay on non-domestic properties in the UK These rates are based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA) Property owners are responsible for paying these rates, whether the property is occupied or not.
In the past, empty commercial properties were given a rate relief period, where owners did not have to pay business rates if the property was vacant However, in 2008, this relief was significantly reduced to just three months for most properties This change was put in place to encourage property owners to occupy their buildings and deter them from leaving properties empty for extended periods of time.
The business rates on empty commercial property can be a significant expense, especially for owners who are struggling to find tenants The rates are generally based on the rateable value of the property, which is determined by the VOA This value is then multiplied by the annual multiplier set by the government to calculate the actual amount that the property owner has to pay.
There are a few exemptions to paying business rates on empty commercial property For example, if a property is in the process of being demolished or undergoing major repairs, the owner may be able to get an exemption for a certain period of time However, these exemptions are temporary and are subject to strict criteria.
One way for property owners to minimize the impact of business rates on empty commercial property is to apply for Empty Property Relief business rates empty commercial property. This relief can reduce the amount of business rates that the owner has to pay on an empty property However, the criteria for qualifying for this relief can be quite strict, and not all properties are eligible.
Another way for property owners to cope with business rates on empty commercial property is to explore different uses for the property For example, they could consider letting out the property for short-term events or temporary pop-up shops This not only generates some income but also shows that the property is being put to use, which may help in appealing against business rates.
It’s important for property owners to stay informed about the rules and regulations regarding business rates on empty commercial property Failure to pay these rates can result in penalties and legal action, which can further add to the financial burden of owning a vacant property Working with a professional property management company can help property owners navigate these complexities and ensure that they are in compliance with all regulations.
In conclusion, business rates on empty commercial property can be a significant expense for property owners Understanding the rules and regulations surrounding these rates is crucial to avoiding penalties and legal action Exploring different options for utilizing the property, as well as seeking out available reliefs, can help property owners minimize the impact of these rates Ultimately, staying informed and working with professionals can help property owners manage the financial burden of owning a vacant property