Business rates on empty commercial property, also known as empty property rates, can often be a significant burden for property owners These rates are a type of tax that property owners must pay to the local council if their commercial property is empty Understanding how these rates are calculated and what exemptions or reliefs may be available can help property owners manage this financial obligation more effectively.
Business rates are a tax based on the rateable value of a commercial property The rateable value is an estimate of the property’s open market rental value as of a specific date, set by the Valuation Office Agency (VOA) in England, the Scottish Assessors Association in Scotland, and the Land and Property Services in Northern Ireland The local council then applies a multiplier to the rateable value to determine the amount of business rates owed.
When a commercial property becomes empty, the owner is still required to pay business rates unless they qualify for an exemption or relief The rules regarding empty property rates can vary depending on the location of the property, so it is important for property owners to understand the regulations in their specific region.
In England, empty commercial properties with a rateable value below £2,900 are exempt from paying business rates Properties with a rateable value between £2,900 and £15,000 may be eligible for small business rates relief Larger properties with a rateable value above £51,000 are subject to higher rates It is essential for property owners to stay informed about any changes to the rates or exemptions that may affect their property.
In Scotland, similar exemptions and reliefs apply to empty commercial properties Properties with a rateable value below £1,700 are exempt from paying business rates, while properties with a rateable value between £1,700 and £18,000 may qualify for relief business rates empty commercial property. Different rules may apply in different parts of Scotland, so property owners should consult with their local council or a professional advisor to understand their specific obligations.
In Northern Ireland, empty commercial property rates are levied at 50% of the full rates after the property has been empty for three months Property owners may be able to apply for exemption or relief if they can demonstrate that they are actively trying to rent or sell the property As with other regions, it is important for property owners in Northern Ireland to keep up to date with any changes to the rules and regulations governing empty property rates.
Property owners who are struggling to pay business rates on their empty commercial property may be able to apply for hardship relief or discretionary relief from their local council Hardship relief is intended for property owners who are facing financial difficulties that make it difficult for them to pay the full rates Discretionary relief may be granted in certain circumstances where the council believes it is appropriate to do so.
It is important for property owners to keep thorough records of their efforts to rent or sell the property, as this information may be required when applying for relief or exemptions Property owners should also be proactive in seeking advice from their local council or a professional advisor to ensure they are fully aware of their options and obligations regarding business rates on their empty commercial property.
In conclusion, business rates on empty commercial property can be a significant financial burden for property owners Understanding how these rates are calculated and what exemptions or reliefs may be available can help property owners manage this obligation more effectively By staying informed about the rules and regulations governing empty property rates in their specific region and seeking advice when needed, property owners can work towards minimizing the impact of business rates on their empty commercial property.