Business rates are a form of tax that is paid on most non-domestic properties, including shops, offices, factories, and warehouses. The amount of business rates that a property owner must pay is determined by the rateable value of the property, which is assessed by the Valuation Office Agency (VOA).
One issue that property owners often face is having to pay business rates on empty properties. This can be particularly challenging for businesses that are struggling or for property owners who are looking to sell or lease their properties. In this article, we will explore the impact of business rates on empty property and discuss some of the options available to property owners.
business rates on empty property can be a significant financial burden for property owners. Under current regulations, most properties are subject to business rates even if they are empty. This means that property owners must continue to pay business rates on vacant properties, even if they are not generating any income.
The rationale behind this policy is that empty properties still benefit from local services such as street cleaning, rubbish collection, and policing, and therefore should contribute towards the costs of these services. However, this can be a major issue for property owners who are not receiving any rental income from their empty properties.
One of the main problems with paying business rates on empty property is that it can deter property owners from investing in and developing their properties. The additional financial burden of business rates can make it more difficult for property owners to make improvements to their properties or to attract tenants. This can have a negative impact on local economies and can result in vacant properties remaining empty for extended periods of time.
There are, however, some exemptions and reliefs available to property owners who are struggling to pay business rates on empty properties. For example, properties that have been empty for three months or less are exempt from paying business rates. Additionally, certain types of properties, such as industrial properties and warehouses, may be entitled to a 50% discount on their business rates for the first three months that they are empty.
Property owners who are struggling to pay business rates on empty properties may also be able to apply for hardship relief. Hardship relief is a discretionary relief that can be granted by local authorities to property owners who are facing financial hardship. In order to qualify for hardship relief, property owners must demonstrate that they are unable to pay their business rates due to financial difficulties.
Another option for property owners who are struggling to pay business rates on empty properties is to seek advice from a professional rating advisor. A rating advisor can help property owners to navigate the complex world of business rates and may be able to identify opportunities for savings or relief that the property owner may not have been aware of.
Property owners who are considering investing in empty properties should also be aware of the implications of business rates. Before purchasing an empty property, it is important to understand the potential costs involved in paying business rates on the property. This can help property owners to make informed decisions about whether a particular property is a viable investment.
In conclusion, business rates on empty property can be a significant financial burden for property owners. However, there are exemptions, reliefs, and options available to property owners who are struggling to pay their business rates. By seeking advice from a professional rating advisor and understanding the implications of business rates, property owners can make informed decisions about how to manage their empty properties in a cost-effective manner.