When it comes to running a business, there are many costs that business owners need to consider. One such cost is business rates, which are taxes that are charged on most non-domestic properties, including shops, offices, pubs, and warehouses. However, what happens when a property becomes unoccupied? Are business rates still applicable? In this article, we will explore the topic of business rates on unoccupied premises.
Business rates are a tax that is charged on most non-domestic properties, and they are calculated based on the rateable value of the property. The rateable value is determined by the Valuation Office Agency (VOA) and is based on the property’s rental value. Business rates are used to help pay for local services such as street cleaning, road maintenance, and fire services.
When a property becomes unoccupied, business rates are still applicable. This may come as a surprise to some business owners who may assume that they can avoid paying business rates if their property is empty. However, the rules around business rates on unoccupied premises are quite strict.
If a property is unoccupied for a short period of time, the owner may be entitled to a three-month exemption from paying business rates. This is known as the empty property relief. After the three-month period has elapsed, full business rates are generally payable.
It is worth noting that there are some exceptions to this rule. For example, if a property is unoccupied and in need of repair, the owner may be entitled to a 50% discount on their business rates for up to 12 months. This is known as the exemption for properties undergoing repair.
Additionally, there are certain types of property that are exempt from paying business rates altogether, even if they are unoccupied. These include agricultural land and buildings, fish farms, and properties that are used for training or welfare services. Properties owned by charities may also be exempt from paying business rates.
For business owners who are struggling to pay their business rates on unoccupied premises, there are options available to help manage the costs. For example, owners may be able to negotiate a payment plan with their local council, in order to spread the cost of their business rates over a longer period of time.
There are also schemes available to help owners of empty properties bring their premises back into use. For example, the government’s Business Rates Relief Scheme offers a discount of up to 100% on business rates for businesses that move into a previously empty property. This can be a great incentive for businesses to take on empty premises and breathe new life into them.
Ultimately, business rates on unoccupied premises can be a significant cost for business owners to bear. However, it is important to remember that these rates are used to fund important local services, and they are a necessary part of running a business. By understanding the rules around business rates on unoccupied premises, business owners can better manage their costs and ensure that they are compliant with the law.
In conclusion, business rates on unoccupied premises are still applicable, even if a property is empty. However, there are exemptions and discounts available to help business owners manage the cost of their rates. By understanding the rules and regulations around business rates on unoccupied premises, business owners can make informed decisions and ensure that they are not caught out by unexpected costs.
Understanding business rates on unoccupied premises is an important part of running a successful business. By staying informed and taking advantage of available schemes and exemptions, business owners can navigate the world of business rates with confidence and ease.