As a business owner, one of the many expenses you have to deal with is business rates. These rates are taxes that commercial property owners must pay to their local authorities. However, there is a specific type of business rates that can catch many property owners off guard – void business rates.
Void business rates are rates that must be paid on vacant commercial properties. This means that even if your property is empty, you are still liable to pay business rates. This can cause a significant financial burden on property owners who may be struggling to find tenants or facing a temporary vacancy.
So, how can you navigate void business rates and ensure you are not paying more than you need to? Here are some key things you need to know about void business rates.
Understanding void business rates
When a commercial property becomes vacant, the local authorities will usually grant a ratepayer a period of empty property relief. This relief can last for a set period, usually three or six months, depending on the location and type of property. However, once this relief expires, the property owner is liable to pay void business rates.
Void business rates are generally charged at the full rate, meaning that property owners may end up paying the same amount as if the property was occupied. This can be a significant financial burden, especially for owners of larger commercial properties.
There are some exceptions to when void business rates may not apply. For example, if the property is exempt from business rates due to certain circumstances, such as being used for charitable purposes or agricultural land, then void business rates may not be applicable.
Reducing void business rates
There are some steps property owners can take to reduce the impact of void business rates on their finances. One option is to negotiate with the local authorities for a reduction or deferment of void business rates. This may be possible if the property owner can demonstrate that they are actively seeking tenants or facing financial hardship.
Another option is to explore alternative uses for the property while it is vacant. For example, renting out the property for temporary events or using it for storage purposes may help to generate some income and offset the void business rates.
Property owners can also consider appealing the rateable value of the property to reduce the amount of void business rates they have to pay. This involves providing evidence to the Valuation Office Agency to show that the rateable value is too high, which may result in a lower rate bill.
Seeking Professional Advice
Navigating void business rates can be a complex process, especially for property owners who are unfamiliar with the regulations surrounding business rates. Seeking advice from a professional, such as a chartered surveyor or a business rates specialist, can help property owners understand their obligations and explore ways to reduce void business rates.
These professionals can provide valuable insights into the local authority’s regulations and help property owners navigate the appeals process if they believe they are being charged too much in void business rates. They can also offer guidance on how to make the property more attractive to potential tenants, which may help to reduce the vacancy period and avoid void business rates altogether.
In conclusion, void business rates can be a significant financial burden for property owners, especially those who are struggling to find tenants or facing temporary vacancies. Understanding the regulations surrounding void business rates and exploring ways to reduce their impact can help property owners navigate this challenging aspect of owning commercial property. Seeking professional advice can provide property owners with the support they need to manage void business rates effectively and ensure they are not paying more than necessary.