When it comes to owning commercial property, one of the key considerations for business owners is the cost of business rates These rates are taxes that are levied on non-residential properties, including offices, shops, warehouses, and industrial buildings However, what many property owners may not realize is that they are still liable for business rates even if their property is unoccupied In this article, we explore the implications of business rates on unoccupied property.
Business rates are a significant expense for property owners, and they are calculated based on the rateable value of the property as determined by the Valuation Office Agency (VOA) However, in the case of unoccupied property, the rates can be a real burden for owners who are not generating any income from their property In the past, property owners were entitled to an exemption of three months for unoccupied properties, but in recent years, the government has introduced changes that have reduced this exemption period.
One of the main reasons for the government’s decision to reduce the exemption period for unoccupied properties was to encourage property owners to bring their vacant properties back into use By reducing the exemption period, the government hoped to incentivize property owners to either rent out their properties or sell them to someone who would put them to productive use This change in policy has had a significant impact on property owners, many of whom have seen their business rates bills increase significantly as a result.
For property owners who are struggling to pay their business rates on unoccupied property, there are a few options available to help alleviate the financial burden One option is to apply for an exemption or a discount on the rates, depending on the circumstances of the property business rates unoccupied property. For example, if the property is undergoing major renovations or repairs, the owner may be eligible for a discount on the rates Similarly, if the property is listed or has historical significance, the owner may be able to apply for an exemption from paying business rates.
Another option for property owners struggling with business rates on unoccupied property is to appeal the rateable value of the property as determined by the VOA Property owners have the right to challenge the rateable value of their property if they believe it is too high, and if successful, they could see a reduction in their business rates bill However, the appeals process can be complex and time-consuming, so property owners may want to seek professional advice to help them navigate the process.
In addition to applying for exemptions, discounts, or appealing the rateable value, property owners may also want to consider other ways to reduce their business rates bill For example, owners could explore the possibility of entering into a temporary lease agreement with a charity or community interest group, as these organizations are entitled to an 80% discount on business rates for unoccupied property By leasing their property to a qualifying organization, property owners could significantly reduce their business rates liability while also contributing to the community.
Overall, the impact of business rates on unoccupied property can be significant for property owners, especially those who are already facing financial challenges However, by exploring the various options available for reducing their rates liability, property owners can take steps to alleviate the burden and potentially bring their vacant properties back into productive use Whether through exemptions, discounts, appeals, or temporary lease agreements, property owners have a range of tools at their disposal to help manage their business rates on unoccupied property.