Business rates can be a significant expense for any property owner, especially when the property sits unoccupied In the UK, businesses that own unoccupied property are required to pay business rates on those properties, which can add up to a hefty sum of money over time In this article, we will explore the impact of business rates on unoccupied property and provide some tips for property owners looking to reduce this financial burden.
When a property is unoccupied, the local council can charge business rates on the property These rates are based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA) The current rateable value is multiplied by the multiplier set by the government to calculate the amount of business rates due on the property.
The rateable value of a property is based on a number of factors, including the size, location, and condition of the property This value is reassessed every few years, so property owners may see an increase in their business rates if the value of their property has gone up since the last assessment.
For property owners with unoccupied properties, paying business rates can be a significant financial burden In addition to the regular expenses of owning a property, such as maintenance and insurance, business rates can add hundreds or even thousands of pounds to the annual cost of owning an unoccupied property.
One way that property owners can reduce the amount of business rates they have to pay on unoccupied property is by applying for empty property relief This relief can provide a 100% exemption from business rates for a limited period of time, typically up to three months for commercial properties and up to six months for industrial properties.
To qualify for empty property relief, the property must be unoccupied and unfurnished Property owners will need to apply for this relief through their local council, providing evidence that the property meets the criteria for exemption business rates unoccupied property. It’s important to note that once the relief period expires, the full rate of business rates will be due on the property.
Another option for property owners looking to reduce the financial impact of business rates on unoccupied property is to explore other ways of generating income from the property This could include renting out the property on a short-term basis, leasing it to a business or individual, or even using it for storage purposes.
By generating income from the property, property owners may be able to offset some or all of the costs of paying business rates on the property This can also help to keep the property in good condition and prevent it from falling into disrepair while it is unoccupied.
In some cases, property owners may be eligible for other forms of relief or discounts on their business rates For example, if the property is in a designated Enterprise Zone, the property owner may be eligible for business rates relief as part of a government incentive to encourage investment in the area.
Property owners should also be aware of the implications of leaving a property unoccupied for an extended period of time In some cases, local councils may consider taking action against properties that have been left empty for a long period, particularly if the property is causing a blight on the local area or attracting anti-social behavior.
In extreme cases, the council may choose to compulsorily purchase the property or take other enforcement action to bring the property back into use This can result in additional costs for the property owner, as well as potential legal fees and disputes.
Overall, business rates on unoccupied property can be a significant financial burden for property owners, but there are options available to help reduce this cost By exploring empty property relief, generating income from the property, and staying informed about other forms of relief, property owners can minimize the impact of business rates on their unoccupied properties.