As a property owner, one of the many expenses you may have to deal with is business rates. These rates are set by the local council and are charged on most non-domestic properties, including vacant ones. vacant property business rates can often be a significant financial burden for property owners, especially when their properties are empty for an extended period of time. In this article, we will explore what vacant property business rates are, how they are calculated, and what property owners can do to minimize their impact.
vacant property business rates, also known as empty property rates, are taxes that are levied on properties that are not being used. The purpose of these rates is to discourage property owners from leaving their properties empty for extended periods of time. The idea is that by charging business rates on vacant properties, property owners will be incentivized to either rent out their properties or sell them, thereby bringing them back into productive use. vacant property business rates are in addition to any regular business rates that would be due if the property were occupied.
The amount of vacant property business rates that a property owner must pay is determined by the rateable value of the property. The rateable value is an estimate of the property’s open market rental value as of a specific date. The Valuation Office Agency (VOA) is responsible for assessing the rateable value of commercial properties in England and Wales. Once the rateable value is determined, the local council uses this value to calculate the business rates that are due.
In recent years, there have been some changes to the way vacant property business rates are charged. Previously, property owners were granted a 100% exemption from vacant property business rates for the first three months that a property was empty. However, as of April 1st, 2020, this exemption was reduced to 50%. This means that property owners now have to pay 50% of the full business rates on a vacant property after it has been empty for three months. This change has made it even more important for property owners to find ways to minimize the impact of vacant property business rates.
There are several strategies that property owners can use to reduce the amount of vacant property business rates that they have to pay. One common approach is to qualify for an exemption or relief. For example, certain types of properties, such as industrial and warehouse properties, may qualify for a 100% exemption from vacant property business rates for the first six months that they are empty. Additionally, properties that are undergoing major renovations or repairs may qualify for a 100% exemption for up to 12 months. Property owners should check with their local council to see if their property qualifies for any exemptions or relief.
Another strategy that property owners can use to minimize vacant property business rates is to actively market their property for rent or sale. By showing that they are actively trying to bring their property back into use, property owners may be able to qualify for a 50% exemption from vacant property business rates for an additional three months. This can be a valuable incentive for property owners to take proactive steps to find a tenant or buyer for their vacant property.
In conclusion, vacant property business rates can be a significant financial burden for property owners. By understanding how these rates are calculated and taking proactive steps to minimize their impact, property owners can reduce the amount of money that they have to pay on their empty properties. Whether it’s qualifying for an exemption or relief, actively marketing the property for rent or sale, or exploring other strategies, there are ways for property owners to manage their vacant property business rates and avoid unnecessary expenses.