Business rates on vacant property, also known as empty property rates, can be a significant financial burden for property owners When a property is empty, the owner is still required to pay business rates to the local government Understanding how these rates are calculated and what exemptions may apply is crucial for property owners.
Business rates are taxes that are levied on most non-domestic properties These rates are used to fund local services such as police, fire, and waste disposal The amount of business rates that a property owner must pay is based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA).
When a property becomes vacant, the owner is still responsible for paying business rates unless they qualify for an exemption The government provides a 100% exemption for the first three months that a property is empty After this initial period, the owner will be required to pay the full business rates unless they meet certain criteria for further relief.
One common exemption for vacant property is if the property is undergoing major repair or structural alteration In this case, the owner may qualify for a full exemption on the property for as long as the work is being carried out This exemption can be a significant relief for property owners who are investing in their property to bring it back into use.
Another exemption applies to properties that are considered to be unusable This could be due to reasons such as contamination or statutory prohibition If the property is deemed to be unusable, the owner may qualify for a full exemption on the property However, it is important to note that this exemption must be applied for and approved by the local council.
There are also certain properties that are exempt from business rates altogether, regardless of their occupancy status business rates vacant property. These include agricultural land and buildings, fish farms, and buildings used for training or welfare of disabled people It is important for property owners to be aware of these exemptions to ensure that they are not overpaying on their business rates.
For property owners who are unable to qualify for an exemption, there are still options available to help mitigate the cost of business rates on vacant property One option is to apply for a hardship relief, which provides a temporary reduction in business rates for properties that are experiencing financial hardship This relief is typically granted on a case-by-case basis, so property owners may need to provide evidence of their financial situation in order to qualify.
Another option for property owners is to consider leasing out the property on a short-term basis By doing so, the property may qualify for small business rates relief if the tenant is a small business This relief provides a 50% discount on business rates for eligible properties, which can help to offset the costs of keeping the property vacant.
It is also worth noting that some local authorities offer incentives for bringing vacant properties back into use These incentives may include temporary relief on business rates or grants to support the renovation of the property Property owners should research what incentives are available in their area and take advantage of these opportunities to reduce the financial burden of business rates on vacant property.
In summary, business rates on vacant property can be a significant cost for property owners Understanding how these rates are calculated and what exemptions may apply is crucial for managing this financial burden By exploring options for relief, such as exemptions, hardship relief, and incentives for bringing properties back into use, property owners can take proactive steps to reduce their business rates and ensure that their properties remain financially viable.