Business rates are taxes that are paid on non-residential properties in the UK. This includes commercial properties such as shops, offices, and warehouses. However, what happens when a commercial property is empty? In this article, we will delve into the topic of business rates for empty commercial property, also known as the “business rates empty commercial property“.
When a commercial property is empty, the owner is still required to pay business rates. This is because the property is still considered to have a rateable value even if it is not being used. The only exception is if the property falls under certain exemptions or reliefs.
One exemption is when a property is newly built and has not been occupied yet. In this case, the owner may be eligible for a 100% relief for up to 18 months. This is designed to encourage the development of new buildings and provide some financial relief to property owners.
Another exemption is when a property is undergoing major repairs or structural changes. In this case, the owner may also be eligible for relief depending on the circumstances. This is to prevent owners from being penalized for improving their properties.
For properties that are empty and do not fall under any exemptions, the owner will be required to pay the full business rates. This can be a significant financial burden for property owners, especially if the property remains empty for an extended period of time.
One common strategy that some property owners use to avoid paying business rates for empty properties is to temporarily let out the property for a short period. By doing so, they can claim the empty property relief, which provides a 3-month exemption from business rates. This can be a useful tactic for property owners who are struggling to find long-term tenants.
It is important for property owners to be aware of their obligations when it comes to business rates for empty commercial property. Failure to pay the rates can result in penalties and legal action from the local council. It is always best to seek professional advice from a chartered surveyor or property consultant to ensure compliance with the regulations.
The government has recognized the challenges faced by property owners with empty commercial properties and has introduced some measures to provide relief. For example, in response to the COVID-19 pandemic, the government introduced a 100% relief for retail, hospitality, and leisure properties for the 2020/2021 financial year. This was aimed at supporting businesses that were forced to close due to lockdown restrictions.
However, it is important to note that these relief measures are temporary and may not be applicable in the long term. Property owners should always stay updated on the latest government policies and regulations regarding business rates for empty commercial properties.
In some cases, property owners may also be able to appeal the rateable value of their property if they believe it has been over-assessed. This can be a complex process that requires expert knowledge of the property market and valuation methods. It is advisable to seek professional advice before pursuing an appeal.
Overall, business rates for empty commercial property can be a significant financial burden for property owners. It is important to be aware of the regulations and exemptions that apply to empty properties to avoid penalties and legal action. Seeking professional advice and staying informed on government policies can help property owners navigate the complexities of business rates effectively.