For many business owners, the topic of business rates is a necessary evil that comes with the territory of owning property. However, when it comes to empty properties, the rules and regulations surrounding business rates can be confusing and frustrating to navigate. In this article, we will delve into the world of business rates on empty property and provide advice on how to handle them effectively.
Business rates are a tax paid on non-residential properties, such as shops, offices, and warehouses. They are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value represents the rental value of the property on a certain date, and it is used to calculate the amount of business rates owed by the property owner.
When a property is occupied and in use, the occupier is responsible for paying the business rates. However, when a property is empty, the responsibility falls back on the property owner. This can be a significant financial burden for owners of empty properties, especially in cases where the property has been vacant for an extended period of time.
In the past, owners of empty properties were granted a period of relief from paying business rates. However, changes in legislation in recent years have significantly reduced the amount of relief available, leaving many property owners struggling to keep up with the payments.
One of the main factors contributing to the high cost of business rates on empty property is the government’s efforts to encourage property owners to bring vacant properties back into use. By imposing high rates on empty properties, the government hopes to incentivize owners to either occupy the property themselves or rent it out to tenants.
While the intention behind these measures is noble, the reality is that many property owners simply cannot afford to pay the high rates on empty properties. This can lead to a vicious cycle where owners are unable to find tenants for their properties due to the high business rates, resulting in the property remaining vacant for extended periods of time.
So, what can property owners do to alleviate the burden of business rates on empty property? One option is to explore the various relief schemes and exemptions that may be available. For example, properties undergoing major renovations or repairs may be eligible for relief from business rates for a certain period of time. Additionally, properties with a rateable value below a certain threshold may be exempt from paying business rates altogether.
Property owners can also explore the possibility of appealing their rateable value with the VOA. If they believe that the rateable value assigned to their property is incorrect, they can request a reassessment in order to potentially lower the amount of business rates owed. It is important to note, however, that the appeals process can be lengthy and complex, so property owners should seek professional advice before proceeding.
Another option for property owners struggling with business rates on empty property is to consider leasing the property to a charity or community organization. In certain cases, properties leased to qualifying organizations can benefit from 80% relief on business rates, which can significantly reduce the financial burden on the property owner.
Overall, navigating the world of business rates on empty property can be a daunting task for property owners. However, by exploring the various relief schemes, exemptions, and appeals processes available, owners can take steps to alleviate the financial strain of paying business rates on vacant properties. It is important for property owners to seek professional advice and explore all available options in order to effectively manage their business rates and avoid falling into financial hardship.
In conclusion, business rates on empty property can be a significant financial burden for property owners. However, by understanding the rules and regulations surrounding business rates, exploring relief schemes and exemptions, and seeking professional advice, owners can take steps to alleviate the financial strain and effectively manage their obligations. By taking proactive measures, property owners can navigate the challenges of business rates on empty property and ensure the long-term viability of their investments.