Understanding Void Business Rates: What You Need To Know

If you are a business owner or landlord, you may have heard of void business rates. These rates can have a significant impact on your financial planning and can sometimes catch people off guard. In this article, we will break down what void business rates are, how they are calculated, and what you can do to minimize their impact on your business.

void business rates refer to the rates that are payable on a commercial property that is empty or unoccupied. In the United Kingdom, businesses are required to pay business rates on their properties, whether they are occupied or not. However, the rules around empty properties can be complex and confusing for many business owners.

One of the key things to understand about void business rates is that they can be a significant expense for a business. In some cases, the rates payable on an empty property can be as high as the rates payable on a property that is fully occupied. This can come as a shock to many business owners, especially if they are not aware of the rules around empty properties.

The rates payable on an empty property are calculated based on the rateable value of the property. The rateable value is determined by the Valuation Office Agency (VOA) and is used to calculate the amount of business rates that a property is liable for. The rateable value is based on factors such as the size, location, and condition of the property.

Once the rateable value of a property has been determined, the business rates payable on the property are calculated using a multiplier set by the government. This multiplier is set each year by the government and is used to calculate the rates payable on a property. The multiplier is typically higher for properties that have been empty for a long period of time, in order to incentivize landlords and property owners to bring their properties back into use.

There are some exemptions and reliefs available for businesses that have empty properties, but these can be complex and difficult to navigate. For example, some properties may be eligible for a three-month exemption from business rates if they are empty following a change in occupation. However, this exemption only applies in certain circumstances and may not be available to all businesses.

Another thing to be aware of is that the rules around void business rates can vary depending on where your property is located. In some areas, the local council may have additional rules or regulations around empty properties that could affect the amount of rates payable. It is important to check with your local council to understand the specific rules that apply to your property.

So, what can you do to minimize the impact of void business rates on your business? One option is to work with a professional property consultant or surveyor who can help you navigate the rules and regulations around empty properties. They can help you understand any exemptions or reliefs that may be available to you and can help you develop a strategy to minimize the impact of void business rates on your business.

Another option is to try to bring your property back into use as quickly as possible. This could involve refurbishing the property, marketing it to potential tenants, or offering incentives to attract new occupants. By bringing your property back into use, you can avoid having to pay void business rates and can start generating income from your property again.

Overall, void business rates can be a significant expense for businesses with empty properties. It is important to understand the rules and regulations around empty properties in order to minimize the impact of void business rates on your business. By working with a professional property consultant, understanding any exemptions or reliefs that may be available, and taking steps to bring your property back into use, you can help manage the financial impact of void business rates on your business.