As a commercial property owner, it’s essential to be aware of the rates payable on empty commercial property. These rates, also known as business rates, are taxes levied by local authorities on non-domestic properties. The amount you are required to pay can vary depending on several factors, including the location of the property, its size, and its rateable value.
It’s important to note that business rates apply to all commercial properties, whether they are being used or not. This means that even if your property is vacant, you are still liable to pay these rates. However, there are certain exemptions and reliefs available for owners of empty commercial properties.
One of the main exemptions for empty commercial properties is the empty property relief. This relief provides a 100% discount on business rates for the first three months that a property is empty. After the initial three-month period, the property owner may be required to pay the full amount of business rates, depending on the local authority’s policies. Some local authorities may offer extended relief periods, so it’s worth checking with your council to see if you are eligible for any additional exemptions.
Another important factor to consider is the rateable value of your property. The rateable value is the estimated rental value of your property on a certain date, as determined by the Valuation Office Agency (VOA). This value is used to calculate the amount of business rates you are required to pay. If your property has a lower rateable value, you may be eligible for a lower rate of business rates.
It’s also worth noting that certain types of properties may be exempt from business rates altogether. For example, agricultural land and buildings used for agriculture are generally exempt from business rates. Additionally, properties used for charities or non-profit organizations may be eligible for charitable relief, which can provide a discount on business rates.
If you are a commercial property owner and are struggling to pay the rates on your empty property, there are steps you can take to reduce the financial burden. One option is to consider leasing or renting out the property to a tenant. By doing this, you can generate rental income, which can help offset the cost of business rates.
Alternatively, you may want to consider appealing the rateable value of your property. If you believe that the rateable value assigned to your property is incorrect, you can challenge it by contacting the VOA. They will reassess the value of your property, and if it is found to be lower than initially estimated, you may be eligible for a reduction in your business rates.
Overall, understanding the rates payable on empty commercial property is crucial for all property owners. By being aware of the exemptions, reliefs, and options available, you can ensure that you are not overpaying on business rates. It’s also important to stay informed about any changes in legislation or local authority policies that may impact the amount you are required to pay.
In conclusion, owning a commercial property comes with certain financial obligations, including the payment of business rates on empty properties. By taking advantage of available exemptions and reliefs, as well as exploring options for generating income or appealing the rateable value, you can effectively manage the costs associated with owning empty commercial property.