Owners of commercial properties understand the intricacies involved in managing their properties One of the challenges they face is paying rates on their empty commercial properties The rates payable on empty commercial properties can often be a significant expense, but understanding the rules and regulations surrounding these rates is crucial for property owners to effectively manage their costs.
The rates payable on empty commercial properties, also known as business rates, are taxes charged on non-residential properties in England, Wales, and Scotland These rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA) in England and Wales, and the Scottish Assessors Association in Scotland The rateable value is an estimate of the annual rental value of the property on a certain date set by the government.
It is important for property owners to understand that business rates are still payable on empty commercial properties, even if they are not generating any rental income This is because the local authorities that collect business rates use this revenue to fund local services, such as schools, roads, and waste management However, there are certain exemptions and reliefs available to property owners to help reduce the amount of rates payable on their empty commercial properties.
One of the reliefs available to property owners is the Empty Property Relief (EPR) This relief provides a 100% discount on business rates for the first three months that a property is empty After the initial three-month period, the property owner will be required to pay the full amount of business rates unless they qualify for other reliefs or exemptions It is important for property owners to inform their local council immediately when their property becomes vacant to ensure they are eligible for EPR from the start.
Another relief available to property owners is the Small Business Rate Relief (SBRR) This relief is aimed at helping small businesses with a rateable value of less than £15,000 rates payable on empty commercial property. Eligible properties can receive a discount on their business rates, and in some cases, the relief can be as high as 100% Property owners should check with their local council to see if they qualify for SBRR and to apply for the relief.
Property owners may also be eligible for other reliefs or exemptions, such as charitable rate relief, rural rate relief, or hardship relief These reliefs are available for specific circumstances, and property owners should consult with their local council to see if they qualify for any additional relief.
In some cases, property owners may choose to temporarily reduce their business rates liability by using the Government’s Business Rates “holiday” scheme This scheme was introduced in response to the COVID-19 pandemic to provide relief to businesses that have been severely impacted by the crisis Property owners should check with their local council to see if they are eligible for the Business Rates holiday and to apply for the relief.
It is important for property owners to be aware of the rules and regulations surrounding rates payable on empty commercial properties to avoid any potential penalties or fines Failure to pay business rates on time can result in legal action being taken against the property owner, including forfeiture of the property Property owners should also keep accurate records of any communications with their local council regarding their business rates to ensure they are paying the correct amount.
In conclusion, rates payable on empty commercial properties can be a significant expense for property owners However, there are reliefs and exemptions available to help reduce the amount of rates payable on empty commercial properties Property owners should be aware of these reliefs and consult with their local council to see if they qualify for any exemptions By understanding the rules and regulations surrounding business rates, property owners can effectively manage their costs and avoid any potential penalties or fines.