Empty commercial properties can be a headache for many business owners, especially when it comes to dealing with the business rates attached to them Business rates on empty commercial property can often feel like an extra burden, making it challenging for businesses to manage their finances effectively In this article, we will explore the implications of business rates on empty commercial property and provide some insights on how businesses can navigate this issue effectively.
Business rates are a tax that businesses in the UK must pay on the non-residential property they occupy This includes shops, offices, factories, warehouses, and other commercial properties The amount of business rates to be paid is based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA) and usually reviewed every five years.
One of the most contentious issues regarding business rates is the treatment of empty commercial properties Businesses are still required to pay business rates on empty commercial properties, albeit at a reduced rate after they have been empty for a certain period This has been a source of frustration for many business owners, as they are essentially being taxed for property that is not generating any income.
The rationale behind charging business rates on empty properties is to discourage property owners from leaving their properties vacant for extended periods The government aims to incentivize property owners to bring these properties back into productive use, thus contributing to the local economy However, this policy can be burdensome for businesses, especially during times of economic uncertainty or when properties are difficult to lease or sell.
Business rates on empty commercial properties can put additional strain on businesses that are already struggling financially Paying business rates on top of other operating costs can deplete a business’s resources and hinder its ability to invest in growth and expansion For businesses that are looking to downsize or restructure, the cost of empty property rates can be a significant barrier to making necessary changes.
Despite the challenges posed by business rates on empty commercial property, there are some strategies that businesses can employ to mitigate the impact business rates empty commercial property. One option is to appeal the rateable value of the property if they believe it has been assessed too high Businesses can work with a rating surveyor to present evidence supporting a lower rateable value, which could result in a reduction in the business rates payable.
Another approach is to explore the possibility of securing empty property relief, which offers a 100% discount on business rates for certain types of empty properties This relief is available for properties that are used for particular purposes, such as industrial premises or buildings with a rateable value below a certain threshold By taking advantage of empty property relief, businesses can significantly reduce their business rates liability on empty properties.
Businesses can also consider leasing or subletting their empty commercial properties to generate income and offset the cost of business rates By finding a tenant or sublessee for the property, businesses can avoid paying full business rates on an empty property and potentially generate additional revenue However, businesses should carefully consider the implications of leasing or subletting, such as legal responsibilities and potential risks involved.
In conclusion, business rates on empty commercial property can be a challenge for many businesses to navigate The requirement to pay business rates on empty properties can strain finances and hinder business operations, especially during challenging economic conditions However, by exploring alternative relief options, appealing rateable values, and considering leasing or subletting, businesses can take proactive steps to manage the impact of business rates on empty commercial properties With careful planning and strategic decision-making, businesses can effectively navigate this issue and minimize the financial burden of empty property rates.