Vacant properties are a common sight in many towns and cities around the world These buildings sit empty, often becoming eyesores and attracting unwanted attention One of the issues that comes with owning a vacant property is the cost of maintaining it, which includes paying business rates on the property
Business rates are taxes that businesses in the UK have to pay on the commercial properties they occupy However, what many property owners don’t realize is that they may still be liable to pay business rates on their vacant properties.
The government introduced business rates on vacant properties as a way to discourage property owners from leaving their buildings empty for extended periods The idea is to incentivize owners to either sell or rent out their properties, thus bringing more life to the area and generating income for the local government.
But for property owners, this can be a significant financial burden Paying business rates on a property that is not generating any income can be frustrating and costly Many property owners find themselves in a Catch-22 situation where they are unable to afford the rates, but also unable to find tenants for their property.
The rateable value of a property is used to calculate the business rates that are due This value is assessed by the Valuation Office Agency (VOA) and is based on factors such as the size and location of the property Property owners can check the rateable value of their property on the government’s website.
There are some exemptions and reliefs available for vacant properties For example, properties that are undergoing major repair work or are in the process of being demolished may be eligible for relief from business rates business rates on vacant property. However, these exemptions are not always guaranteed, and property owners may still find themselves liable to pay rates even if their property meets the criteria for relief.
It’s also worth noting that property owners may still be liable to pay business rates on their vacant properties even if they are not actively marketing them for sale or rent The VOA can assess the property and determine its rateable value based on factors such as the state of repair and location, regardless of the owner’s efforts to find a tenant.
For property owners who are struggling to pay business rates on their vacant properties, there are a few options available One option is to seek advice from a professional such as a surveyor or a tax advisor, who can help navigate the complexities of the business rates system and potentially find ways to reduce the amount owed.
Another option is to consider leasing the property out on a temporary basis to avoid paying the full rates Some owners may choose to offer short-term leases or licenses to occupy the property, which can help generate some income and reduce the burden of paying full rates on an empty building.
In some cases, property owners may decide to sell the property to avoid the costs associated with maintaining it This can be a difficult decision, especially if the property has sentimental value or potential for future development However, selling the property can be a practical solution for those who are struggling to keep up with the costs of owning a vacant building.
Overall, the issue of business rates on vacant properties is a complex one that affects many property owners While the government’s intention may be to encourage owners to bring their properties back into use, the reality is that many owners are struggling to keep up with the costs of maintaining an empty building Seeking professional advice and exploring all available options can help property owners navigate this challenging situation and find a solution that works for them.
In conclusion, the impact of business rates on vacant properties cannot be overstated These rates can be a significant financial burden for property owners, who may find themselves struggling to keep up with the costs of maintaining an empty building Exploring all available options and seeking professional advice can help owners navigate this challenging situation and find a solution that works for them.