When it comes to owning commercial property, one of the costs that landlords or property owners face is business rates. These rates are taxes that are imposed on non-residential properties, such as offices, shops, industrial units, and warehouses. Business rates are calculated based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA).
One issue that property owners often face is the rates payable on empty commercial properties. When a commercial property becomes vacant, it ceases to generate rental income, making it an additional financial burden for the owner. In this article, we will explore the implications of rates payable on empty commercial property and how property owners can navigate through this challenge.
rates payable on empty commercial property are a contentious issue for property owners, as they still have to pay a significant amount of money even when the property is not generating any income. The government has introduced certain exemptions and reliefs to alleviate the financial burden on property owners, but navigating through these regulations can be complex and confusing.
One of the key exemptions for rates payable on empty commercial property is the Empty Property Rate Relief. This relief offers a 100% discount on business rates for the first three months that a property is unoccupied. After this initial period, the property owner becomes liable to pay the full business rates unless they qualify for other exemptions or reliefs.
Another important exemption is the Small Business Rate Relief, which applies to properties with a rateable value below a certain threshold. Property owners who qualify for this relief can benefit from a reduced rate or a 100% discount on business rates. However, this relief is subject to certain conditions, and property owners need to meet the eligibility criteria set by the local council.
Property owners can also look for other ways to reduce the rates payable on empty commercial property. For example, they can consider leasing the property to a charity or community group, as properties occupied by these entities are eligible for 80% rate relief. This can be a win-win situation for both the property owner and the charity or community group, as the property owner can reduce their financial burden, and the charity or community group can access affordable space.
Another option for property owners is to apply for Hardship Relief, which offers a 50% discount on business rates for properties that are experiencing financial hardship. This relief is granted on a case-by-case basis, and property owners need to provide evidence of their financial difficulties to qualify for this relief.
Property owners should also be aware of the implications of leaving a property vacant for an extended period. In some cases, the local council may classify a property as a long-term empty property, which can result in an increase in the business rates payable. Property owners need to be proactive in managing their empty properties and explore all available options to reduce their financial burden.
In conclusion, rates payable on empty commercial property can be a significant financial burden for property owners. However, there are exemptions and reliefs available to help alleviate this burden. Property owners need to be aware of these options and take proactive steps to reduce their rates payable on empty commercial property. By exploring all available options and working closely with the local council, property owners can navigate through this challenge and minimize the financial impact of empty properties.