Business rates and empty rates relief
In the current economic situation, many property owners are struggling to rent out their properties, and their difficulties have been exacerbated by their liability to pay rates on empty properties.
Who is liable to pay rates on empty properties?
The person liable to pay rates on empty property is the “property owner” The” property owner” is the person entitled to possession of the property. This includes a tenant who has vacated but is unable to surrender the lease or find an assignee.
What empty non-domestic properties are rateable?
If a property is incapable of beneficial occupation, it will be removed from the rating list altogether and no rates will be payable. If only part of the property is rendered incapable of beneficial occupation, the Valuation Office Agency reduces the rateable value of the premises for the period during which that part cannot be used
Basis of calculation of rates
The business rates bill is calculated by multiplying the rateable value of the non-domestic property by the relevant multiplier.
Rateable value of wholly non-domestic property
The rateable value of the property is based on the amount of annual rent reasonably obtainable for the property, on the assumption that, if it is economically reasonable to do so, it has been put into repair.This assumption applies regardless of the actual state of the property. Where the repairs would not be economic, the valuation is based on the annual rent reasonably obtainable for the property in its unrepaired state.
The VOA reviews rateable values every five years.
The multipliers usually change each year in line with movement of the Retail Prices Index (RPI) since the previous September.
Contact the Commercial Property team at Ironmonger Curtis on 0845 222 2635.