When it comes to owning or leasing commercial property, one of the many considerations that businesses need to take into account is the payment of business rates These rates are a form of property tax that is charged on most non-domestic premises, including shops, offices, warehouses, and factories However, when a property becomes vacant, there are specific rules and regulations around how business rates are assessed and paid on these empty properties.
Business rates on vacant properties can often be a source of confusion for property owners and tenants alike Understanding the rules surrounding these rates is crucial to avoid unnecessary penalties and ensure compliance with the law In this article, we will take a closer look at business rates on vacant property and provide insights into how they are calculated and managed.
Under normal circumstances, business rates are levied on the occupier of a commercial property based on the rateable value of the premises This rateable value is determined by the Valuation Office Agency (VOA) and is used as the basis for calculating the amount of business rates that need to be paid However, when a property becomes vacant, the rules around business rates change.
In the UK, a property is considered vacant for business rates purposes if it is unoccupied and unfurnished This means that even if a property is still in the process of being fitted out or is temporarily empty, it may still be liable for business rates if it meets these criteria The period for which a property is considered vacant varies depending on the local authority, but generally, the rates become payable after a property has been empty for three months.
The rules around business rates on vacant property are designed to prevent property owners from leaving premises empty for extended periods of time in order to avoid paying rates However, there are exemptions and reliefs available for certain types of vacant properties For example, newly built properties are often given a grace period before business rates become payable, and properties undergoing major renovation or redevelopment may also be eligible for relief.
It is important for property owners to notify their local council as soon as a property becomes vacant, as failing to do so can result in penalties and fines business rates vacant property. Once a property is registered as vacant, the council will assess the rateable value of the premises and calculate the amount of business rates that need to be paid Property owners will then be sent a bill for these rates, which must be paid within a specified time frame.
In some cases, property owners may be able to claim empty property exemption, which can provide relief from paying business rates on vacant properties To qualify for this exemption, the property must meet certain criteria, such as being in need of repair or undergoing structural changes Property owners will need to provide evidence to support their claim for exemption, and the local council will assess whether the property meets the necessary requirements.
Another option for property owners with vacant premises is to apply for business rates relief This can provide a discount on the amount of rates that need to be paid, depending on the circumstances of the property For example, properties in certain designated areas or those with heritage status may be eligible for relief Property owners should check with their local council to see if they qualify for any available relief schemes.
It is worth noting that the rules around business rates on vacant property can be complex and may vary depending on the location of the property Property owners should seek advice from a qualified professional, such as a chartered surveyor or tax advisor, to ensure that they are compliant with the law and are not paying more than they need to in business rates.
In conclusion, business rates on vacant property are an important consideration for property owners and tenants alike Understanding the rules and regulations around these rates is crucial to avoid penalties and ensure compliance with the law By being proactive and seeking advice when necessary, property owners can manage their vacant properties effectively and minimize their liability for business rates.