As a business owner, you are likely familiar with the concept of business rates – the tax that businesses in the UK have to pay based on the value of the property they occupy. However, what happens when your property is temporarily vacant? This is where void business rates come in.
void business rates, also known as empty property rates, are a tax that is levied on commercial properties that are empty for a certain period of time. This tax is meant to incentivize property owners to bring their vacant properties back into use and to prevent properties from sitting empty for extended periods of time.
The way void business rates are calculated can vary depending on the local authority and the specific circumstances of the property. In general, however, if a commercial property is empty for three months or more, the property owner will be liable to pay void business rates.
The rateable value of the property is still assessed during this time, but instead of being charged the full business rates, the property owner is charged a reduced rate. This rate can be anything from 50% to 100% of the full business rates, depending on the local authority’s policies.
It is important for business owners to be aware of void business rates and how they are calculated, as failing to pay them can result in hefty fines and penalties. However, there are certain exemptions and reliefs that may be available to businesses facing void business rates.
One exemption that may apply is the small business rate relief. If your property has a rateable value of less than £15,000, you may be eligible for small business rate relief, which can significantly reduce the amount of void business rates you have to pay.
Another relief that may be available is the charitable rate relief. If your property is occupied by a registered charity and is used for charitable purposes, you may be eligible for charitable rate relief, which can exempt you from paying void business rates altogether.
There are also certain circumstances in which a property may be exempt from void business rates entirely. For example, if the property is undergoing major repair or renovation works, it may be exempt from void business rates for a certain period of time. Additionally, properties that are listed buildings or are classified as being of historical or architectural interest may also be exempt from void business rates.
In order to qualify for any exemptions or reliefs, property owners must apply to their local authority and provide evidence to support their case. It is important to keep detailed records of any repairs, renovations, or charitable activities taking place on the property in order to prove eligibility for relief.
Business owners should also be aware of the implications of leaving a property empty for an extended period of time. Not only will they be liable for void business rates, but leaving a property vacant can also have a negative impact on the surrounding area and can attract vandalism, theft, and other criminal activities.
To mitigate these risks, business owners should consider leasing out their empty properties on a short-term basis or finding temporary uses for them, such as pop-up shops, art galleries, or community events. This not only helps to generate income and reduce void business rates, but it also helps to revitalize the area and attract potential tenants in the future.
In conclusion, void business rates are an important consideration for business owners with empty properties. By understanding how void business rates are calculated and being aware of the exemptions and reliefs available, property owners can effectively manage their empty properties and avoid unnecessary costs. Taking proactive steps to bring vacant properties back into use can not only benefit the property owner, but also contribute to the overall vitality and economic prosperity of the local community.