When it comes to running a business, there are countless expenses to consider From payroll and utilities to marketing and inventory, the costs can quickly add up One cost that is often overlooked, however, is business rates on unoccupied property
Business rates are a tax that businesses in the UK pay on their commercial property This tax helps fund local services such as schools, roads, and police, so it’s an important source of revenue for local councils However, when a property sits empty, businesses are still required to pay business rates on it, even though they are not generating any income from it
This can be a significant financial burden for businesses, especially during times of economic uncertainty when properties may be empty for extended periods In this article, we will explore the ins and outs of business rates on unoccupied property, including how they are calculated and what businesses can do to reduce their liability.
Business rates on unoccupied property are calculated based on the rateable value of the property The rateable value is an estimate of the open market rental value of the property on a certain date, typically set by the Valuation Office Agency The business rates are then calculated by applying a multiplier set by the government to the rateable value.
The rateable value is reassessed every five years, so it’s important for businesses to keep up to date with any changes that may affect their business rates liability business rates unoccupied property. It’s also worth noting that certain types of property may be exempt from business rates on unoccupied property, such as agricultural land and buildings, fish farms, and buildings used for training or welfare.
So, what can businesses do to reduce their liability for business rates on unoccupied property? One option is to apply for relief or exemptions There are several types of relief available, such as empty property relief, which provides a 100% exemption for the first three months that a property is empty, and then a 50% exemption after that This can provide businesses with some breathing room while they try to find a tenant or buyer for their property.
Another option is to appeal the rateable value of the property If a business believes that the rateable value is incorrect, they can submit an appeal to the Valuation Office Agency This can be a lengthy and complex process, but it’s worth considering if a business believes that they are being overcharged for their business rates on unoccupied property.
It’s also worth exploring other ways to reduce the empty property rates burden, such as leasing the property to a charity or community group In certain cases, properties leased to these types of organizations may be eligible for relief from business rates This can be a win-win situation for both the business owner and the charity or community group, as it provides the business owner with relief from business rates and provides the charity or community group with a space to operate.
In conclusion, business rates on unoccupied property can be a hefty financial burden for businesses However, there are steps that businesses can take to reduce their liability and navigate the complex world of business rates By staying informed about their options for relief and exemptions, appealing the rateable value of their property if necessary, and exploring alternative uses for their empty property, businesses can minimize the impact of business rates on unoccupied property on their bottom line.