Business rates are taxes that businesses in the UK have to pay on non-residential properties such as shops, offices, and warehouses These rates are charged by local authorities and are based on the rateable value of the property However, what happens when a property is left unoccupied? In this article, we will explore the implications of business rates on unoccupied property and how businesses can navigate this aspect of property management.
When a property is unoccupied, the responsibility for paying business rates falls on the property owner This means that even if a business moves out of the property or if it remains vacant for an extended period, the owner will still be liable for paying business rates This can be a significant financial burden for property owners, especially during times of economic downturn or if the property is difficult to let.
Many property owners are often surprised to find out that they are still liable for business rates even if their property is unoccupied This is because the law states that properties that are unoccupied and unfurnished are still considered to be liable for business rates However, there are some exemptions and reliefs available that property owners can apply for to reduce the amount they have to pay.
One of the exemptions available for unoccupied properties is the three-month empty property exemption This means that if a property is unoccupied for less than three months, the owner will not have to pay business rates during this period However, once the three months have passed, the property owner will be liable for the full amount of business rates unless they can apply for other reliefs or exemptions.
Another relief that property owners can apply for is the empty property relief, which can provide a discount on the amount of business rates they have to pay business rates unoccupied property. The amount of relief varies depending on the local authority and the type of property, but in general, property owners can expect to receive a 50% discount on their business rates for up to three months after the property becomes unoccupied After this period, the relief may be reduced or removed altogether.
Property owners can also apply for hardship relief if they are facing financial difficulties or if the property has been empty for an extended period This relief is discretionary and is granted on a case-by-case basis, but it can provide significant savings on business rates for property owners who are struggling to make ends meet.
It is important for property owners to be aware of their obligations when it comes to business rates on unoccupied property Ignoring these rates or trying to avoid paying them can result in legal action being taken by the local authority, including court orders and bailiff action Property owners could also face financial penalties and interest charges if they fail to pay their business rates on time.
To avoid these consequences, property owners should take proactive steps to manage their business rates on unoccupied property This includes keeping track of the property’s rateable value, applying for any available reliefs or exemptions, and keeping in regular contact with the local authority to discuss their financial situation and explore potential options for payment.
In conclusion, business rates on unoccupied property can be a significant financial burden for property owners However, there are exemptions and reliefs available that can help to reduce the amount that property owners have to pay By staying informed about their obligations and taking proactive steps to manage their business rates, property owners can navigate this aspect of property management successfully.