Business rates for unoccupied property can often be a confusing topic for business owners and property investors Understanding the rules and regulations surrounding these rates is crucial to avoid any penalties or unnecessary costs In this article, we will explore what business rates are, how they are calculated, and what you need to know about them when dealing with unoccupied property.
Business rates are taxes that are charged on most non-domestic properties, including shops, offices, factories, and warehouses These rates are set by the government and are used to fund local services such as schools, roads, and waste management The amount of business rates that a property owner has to pay is based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA).
When a property is unoccupied, the rules surrounding business rates can become a bit more complicated In most cases, business rates are still payable on unoccupied properties, but there are some exemptions and reliefs available It is important to be aware of these exemptions and reliefs to avoid paying more than necessary.
One common exemption for unoccupied property is the six month empty property exemption This means that if a property has been unoccupied for less than six months, no business rates are payable However, once the property has been vacant for six months or more, business rates will be payable in full It is important to keep track of how long a property has been empty to avoid any unexpected costs.
Another exemption that may apply to unoccupied property is the three month exemption for newly built or refurbished properties This exemption gives property owners a three month grace period where no business rates are payable, allowing time for the property to be marketed and occupied Again, it is important to keep track of this time period to avoid any unnecessary costs.
There are also a number of reliefs available for unoccupied properties, such as the charitable relief and the small business rate relief business rates unoccupied property. Charitable relief can be claimed if a property is owned by a charity and is unoccupied or only used for charitable purposes Small business rate relief may apply if the rateable value of a property is below a certain threshold, providing a discount on the business rates payable.
It is important to be aware of these exemptions and reliefs when dealing with unoccupied property to avoid any unnecessary costs Failure to pay business rates on unoccupied property can lead to penalties, interest charges, and even legal action It is always best to seek advice from a professional advisor or the local council if you are unsure about your business rates obligations.
In some cases, property owners may choose to deliberately keep a property unoccupied to avoid paying business rates However, this can have negative consequences in the long run Local authorities have the power to levy an empty property premium on properties that have been empty for more than two years, effectively doubling the business rates payable This is intended to provide an incentive for property owners to bring empty properties back into use.
In conclusion, understanding business rates for unoccupied property is essential for property owners and investors Knowing the rules and regulations surrounding business rates can help to avoid unnecessary costs and penalties By being aware of the exemptions and reliefs available, property owners can ensure that they are paying the correct amount of business rates on their unoccupied properties It is always advisable to seek professional advice if you are unsure about your business rates obligations.