When it comes to owning commercial property, there are many costs and expenses that landlords need to be aware of One of these is business rates, which are taxes that must be paid on most non-domestic properties However, when a commercial property is vacant, there are some important considerations to keep in mind when it comes to business rates.
Business rates are a tax on non-domestic property, collected by local authorities They are calculated based on the rateable value of the property, which is set by the Valuation Office Agency (VOA) The rateable value is an estimate of the annual rental value of the property as of a certain date The local authority then sets a multiplier, which is used to calculate how much a property owner will have to pay in business rates.
When a commercial property is vacant, the owner is still responsible for paying business rates This is because the property is still considered to be capable of generating income, even if it is not currently occupied However, there are some exemptions and relief schemes available to help reduce the burden of business rates on vacant properties.
One of the most common reliefs available for vacant properties is the empty property rate relief This relief can reduce the amount of business rates that the owner has to pay on a vacant property The relief is available for the first three months that a property is empty, and for certain types of properties, such as industrial or listed buildings, the relief can be extended for up to six months After the initial relief period, the full business rates must be paid unless the property qualifies for another exemption or relief.
Another option for owners of vacant properties is to apply for a hardship relief business rates vacant property. Hardship relief is available to property owners who are experiencing financial difficulties and are struggling to pay their business rates To qualify for hardship relief, owners must demonstrate that paying the full amount of business rates would cause them undue financial hardship Local authorities have the discretion to grant hardship relief on a case-by-case basis.
Owners of vacant properties can also benefit from a scheme called the business rates holiday for new properties This scheme provides relief from business rates for the first 18 months that a new property is occupied This can be a significant financial incentive for property owners, especially those who are struggling to find tenants for their vacant properties.
It is important for property owners to be aware of the rules and regulations surrounding business rates on vacant properties Failure to pay business rates on a vacant property can result in penalties and interest charges, adding to the financial burden of owning a commercial property It is also important to keep accurate records of any exemptions or reliefs that have been claimed, as local authorities may request proof of eligibility.
In conclusion, business rates on vacant properties can be a significant expense for property owners However, there are exemptions and relief schemes available to help reduce the burden of business rates on vacant properties Owners should be aware of these options and take advantage of any relief that they may be eligible for By staying informed and proactive, property owners can minimize the financial impact of business rates on their vacant properties.