When it comes to owning property, particularly in the commercial sector, there are many factors and expenses to consider. One of these considerations is the payment of business rates on empty property. These rates can be a source of frustration and confusion for property owners, especially when they are already facing financial challenges. In this article, we will explore what business rates on empty property are, why they exist, and how property owners can navigate this aspect of property ownership.
business rates on empty property, also known as empties rates, are taxes that property owners must pay on any commercial property that is unoccupied. These rates are separate from regular business rates, which are paid on occupied commercial properties. The purpose of empties rates is to encourage property owners to keep their properties occupied and to prevent properties from sitting empty for extended periods of time.
The amount of empties rates that a property owner must pay is determined by the rateable value of the property. The rateable value is assessed by the Valuation Office Agency (VOA) and is based on factors such as the size, location, and condition of the property. Property owners are required to pay 100% of the full business rates on empty property for the first three months that the property is vacant. After three months, the property owner is entitled to a 50% discount on the empties rates.
There are some exemptions to the payment of empties rates. For example, properties that are in the process of being refurbished or are awaiting tenants may qualify for an exemption from empties rates for a limited period of time. Property owners should check with their local council to find out if their property qualifies for an exemption.
The payment of empties rates can be a significant financial burden for property owners, especially in times of economic downturn or uncertainty. However, there are some strategies that property owners can use to mitigate the impact of empties rates on their bottom line. One option is to negotiate a temporary lease for the property with a short-term tenant. This can help to generate some income from the property while also reducing the amount of empties rates that must be paid.
Another option is to apply for relief from the payment of empties rates. There are several types of relief that property owners may be eligible for, such as small business rate relief or charitable rate relief. Property owners should consult with their local council or a qualified advisor to determine if they qualify for any of these relief options.
Property owners should also consider the long-term implications of keeping a property empty. While paying empties rates may be a short-term financial burden, the cost of leaving a property unoccupied for an extended period of time can be even greater. Properties that are left vacant for extended periods may fall into disrepair, become a target for vandalism or squatters, and lose value over time. Property owners should weigh the costs and benefits of keeping a property empty versus actively seeking tenants or buyers for the property.
In conclusion, business rates on empty property can be a complex and potentially costly aspect of property ownership. Property owners should be aware of their obligations regarding empties rates and explore options for reducing the financial impact of these rates. By staying informed and proactive, property owners can navigate the world of business rates on empty property more effectively and protect their investments for the long term.