With the current economic climate causing many businesses to either downsize or close their doors permanently, there has been an increase in the number of empty commercial properties across the country. While this may seem like a great opportunity for new businesses to move in, it’s important for property owners to understand the rates payable on empty commercial property.
The rates payable on empty commercial property, also known as business rates, are a tax levied by local authorities in the UK. These rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories. However, the rates payable on empty commercial property can sometimes catch property owners off guard, especially if they are already struggling with the cost of maintaining an empty property.
One of the biggest misconceptions about rates payable on empty commercial property is that if a property is vacant, the owner doesn’t have to pay any business rates. While this may have been true in the past, changes in legislation have made it so that most property owners are now required to pay at least some rates on their empty properties.
The exact amount of rates payable on empty commercial property can vary depending on a number of factors, such as the location and size of the property. However, in most cases, property owners can expect to pay 50% of the normal business rates on a property that has been empty for more than three months.
This can be a significant cost for property owners, especially in a time when many businesses are struggling financially. However, there are steps that property owners can take to reduce the amount of rates payable on empty commercial property.
One option is to apply for a rates relief scheme. These schemes are designed to help businesses that are struggling to pay their rates, and can sometimes provide relief for empty properties as well. Property owners can also look into appealing their business rates, especially if they believe that the rateable value of their property is too high.
Another thing to keep in mind when it comes to rates payable on empty commercial property is that some properties may be exempt from paying business rates altogether. This is usually the case for properties that are listed buildings, or those that are in areas designated for certain types of development.
Property owners should also be aware that the rules regarding rates payable on empty commercial property can change depending on the circumstances. For example, during the COVID-19 pandemic, the government introduced a temporary relief scheme that provided a 100% discount on rates for certain businesses.
In conclusion, rates payable on empty commercial property can be a significant cost for property owners, especially in a time when many businesses are struggling financially. However, by understanding the rules and regulations surrounding business rates, property owners can take steps to reduce the amount they have to pay. Whether it’s applying for rates relief or appealing their business rates, there are options available to help property owners navigate this complex issue.
Overall, it’s important for property owners to stay informed and proactive when it comes to rates payable on empty commercial property. By doing so, they can avoid any surprises and ensure that they are meeting their financial obligations in a responsible manner.