When it comes to owning or renting commercial property, there are various costs and fees that can add up quickly One significant expense that can catch property owners and tenants off guard is the business rates for empty commercial property Understanding how business rates are calculated for empty commercial properties and what exemptions or relief options are available can help you navigate this complex aspect of property ownership or tenancy.
What Are Business Rates for Empty Commercial Property?
Business rates are a tax that is levied on non-domestic properties in the UK They help fund local services such as schools, roads, and waste collection The amount that a property owner or tenant has to pay in business rates is determined by the rateable value of the property, which is set by the Valuation Office Agency (VOA).
When a commercial property becomes vacant, the owner or tenant may still be liable to pay business rates on the empty property This is known as empty property rates, and they can be a significant financial burden for property owners or tenants who are already dealing with the costs of maintaining an empty property.
How Are Business Rates for Empty Commercial Property Calculated?
The rateable value of a property is based on its rental value, which is determined by various factors such as its location, size, and facilities When a commercial property becomes empty, the rateable value is still used to calculate the business rates that are due on the property.
For properties that have been empty for three months or more, the owner or tenant may be required to pay 100% of the business rates on the property This can be a substantial cost, especially for larger or more valuable properties.
What Exemptions or Relief Options Are Available?
There are some exemptions and relief options available to owners or tenants of empty commercial properties to help alleviate the financial burden of paying business rates on vacant properties Some of the most common exemptions and relief options include:
1 business rates empty commercial property. Small business rate relief: If the rateable value of the property is below a certain threshold, the owner or tenant may be eligible for small business rate relief, which can reduce the amount of business rates that are due on the property.
2 Mandatory relief for listed buildings: Properties that are listed buildings may be eligible for mandatory relief on their business rates This can help to reduce the financial burden of paying business rates on a vacant listed property.
3 Hardship relief: In some cases, property owners or tenants who are struggling to pay the business rates on an empty property may be eligible for hardship relief This can provide temporary relief from paying business rates while the owner or tenant works to bring the property back into use.
4 Temporary exemption: Some properties may be eligible for a temporary exemption from paying business rates on the property This can provide some relief while the property is being renovated or marketed for sale or lease.
Navigating the complex world of business rates for empty commercial property can be challenging, but understanding how these rates are calculated and what exemptions or relief options are available can help owners and tenants manage this aspect of property ownership or tenancy By exploring these options and working with a qualified professional, property owners and tenants can ensure that they are meeting their obligations while also minimizing their financial burden.