Business rates on unoccupied property can be a significant financial burden for property owners and businesses In this article, we will explore what constitutes unoccupied property, how business rates are calculated, and what options are available to alleviate this cost.
What constitutes unoccupied property?
Unoccupied property refers to any commercial or industrial property that is not being used for business purposes This can include properties that are vacant, undergoing refurbishment, or awaiting occupation Even if a property is empty for a short period, business rates may still be applicable.
How are business rates calculated on unoccupied property?
Business rates on unoccupied property are calculated in a similar way to rates on occupied property The rateable value of the property is multiplied by the current business rates multiplier set by the government to determine the total amount due.
The rateable value is based on the estimated annual rental value of the property as determined by the Valuation Office Agency (VOA) If a property has been empty for a long time, the rateable value may be reassessed by the VOA to reflect changes in the rental market.
The business rates multiplier is set annually by the government and is applied to the rateable value to calculate the total amount due In some cases, the government may offer discounts or exemptions on business rates for unoccupied property, but these are subject to certain conditions and time limits.
What options are available to alleviate the cost of business rates on unoccupied property?
There are several options available to property owners and businesses to alleviate the cost of business rates on unoccupied property:
1 Empty property relief: The government offers a 100% relief on business rates for certain types of unoccupied property, such as newly built properties or industrial premises with a rateable value below a certain threshold Property owners should check with their local council to see if they are eligible for this relief.
2 Small business rate relief: Small businesses with a rateable value below a certain threshold may be eligible for a discount or exemption on business rates, even if the property is unoccupied This relief is designed to support small businesses and encourage entrepreneurship.
3 business rates unoccupied property. Charitable relief: Charities and non-profit organizations that occupy or own property may be eligible for a discount or exemption on business rates This relief is intended to support organizations that provide a public benefit and may help reduce the financial burden of unoccupied property.
4 Temporary exemptions: In some cases, property owners may be granted a temporary exemption from business rates on unoccupied property, such as when the property is undergoing refurbishment or repairs Property owners should consult with their local council to see if they qualify for this exemption.
5 Appeals: Property owners have the right to appeal their business rates assessment if they believe it is inaccurate or unfair The appeal process involves submitting evidence to the VOA to support a reassessment of the rateable value Property owners should seek professional advice to navigate the appeals process effectively.
In conclusion, business rates on unoccupied property can be a significant financial burden for property owners and businesses Understanding what constitutes unoccupied property, how business rates are calculated, and what options are available to alleviate this cost is essential for managing expenses and ensuring compliance with government regulations Property owners should explore all available options and seek professional advice to mitigate the impact of business rates on unoccupied property.