When it comes to running a business, there are many costs and expenses that owners have to consider One of these expenses is business rates, which are taxes that are levied on most non-domestic properties, including shops, offices, pubs, and warehouses However, when a property becomes unoccupied, business rates can become a point of contention for property owners In this article, we will explore what business rates are, how they are calculated for unoccupied properties, and what property owners can do to mitigate these costs.
Business rates are taxes that are imposed by local authorities on non-domestic properties in the UK The amount of business rates that a property owner has to pay is calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA) The rateable value is an estimate of the yearly rental value of the property, as of a specific date Property owners can find out the rateable value of their properties by visiting the VOA’s website or contacting their local council.
When a property is unoccupied, property owners are still liable to pay business rates However, the rules around business rates for unoccupied properties are slightly different from those for occupied properties For the first three months that a property is unoccupied, property owners are exempt from paying business rates After the initial three-month period, property owners are required to pay 100% of the business rates due on the property This can be a significant financial burden for property owners, especially if their properties remain unoccupied for an extended period of time.
There are some exemptions and reliefs available to property owners of unoccupied properties that may help to reduce the cost of business rates business rates unoccupied property. For example, properties that are undergoing major repairs or structural alterations may qualify for a 100% exemption from business rates for a limited period of time Additionally, properties with a rateable value of less than £2,900 are eligible for small business rate relief, which can significantly reduce the amount of business rates that property owners have to pay.
Property owners who are struggling to pay business rates on unoccupied properties have the option to apply for hardship relief Hardship relief is a discretionary relief that is granted by local authorities to property owners who are experiencing financial hardship and are unable to pay their business rates Property owners must provide detailed information about their financial situation and demonstrate that they have taken steps to minimize their costs in order to qualify for hardship relief.
In some cases, property owners may be able to appeal the rateable value of their properties in order to reduce their business rates liability Property owners can submit an appeal to the VOA if they believe that the rateable value of their property is inaccurate or unfair The appeals process can be complex and time-consuming, but property owners who are successful in their appeals may be able to save a significant amount of money on their business rates.
Property owners who are considering appealing their rateable values or applying for hardship relief should seek advice from a professional, such as a chartered surveyor or a business rates consultant These professionals have the knowledge and experience to help property owners navigate the appeals process and maximize their chances of success Additionally, property owners should keep detailed records of their communications with the VOA and their local council, as well as any documentation relating to their financial situation.
In conclusion, business rates for unoccupied properties can be a significant expense for property owners However, there are exemptions, reliefs, and appeals processes available to help property owners reduce their business rates liability By understanding the rules around business rates for unoccupied properties and seeking professional advice when needed, property owners can effectively manage their costs and minimize the financial impact of unoccupied properties on their businesses.