Do you pay business rates on a property you own?

Is your property liable for business rates?

Business Rates legislation states that the person entitled to possession of a property is liable to pay business rates charges. The person entitled to possession will usually be the leaseholder or the owner of the property.

Who pays the rates on a property?

The person or company named on the lease agreement, tenancy agreement or license agreement will be responsible for paying the business rates. They will be deemed responsible even if they are not trading from or occupying the property.

Who is responsible for registering a property for business rates?

The occupier of a non-domestic property normally pays the business rates. Usually this is the owner-occupier or leaseholder. If a property is empty, the owner or leaseholder will be liable – see exemptions.

Can you avoid paying business rates?

In general, you do not have to pay business rates for the first three months (six months for industrial or warehouse property) if your property is empty. After that, you pay the full amount.

Who pays business tenant or landlord?

When a commercial property is occupied, the tenant is responsible for paying business rates.

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What are rates on property?

Rates. Rates are taxes that local governments charge on properties in their area. If your business owns property, then your local council is likely to send you a rates bill. They’ll usually charge rates every quarter.

Does a landlord have to pay business rates on an empty property?

If you have an empty property but you are now liable to pay full business rates, you may be exempt if the property is a listed building or has a rateable value of less than £2,900 (or under £2,600 if it is before 1 April 2017).

Why do we pay property rates?

Why are rates charged? Municipalities need a reliable source of revenue to provide basic services and perform their functions. Revenue from property rates is used to fund services that benefit the community as a whole.

Do you pay business rates on a B&B?

If you operate bed and breakfast or self-catering accommodation, you may need to pay business rates. If you operate a bed and breakfast you may have to pay both non-domestic rates, on the portion used for guest accommodation, and domestic rates on the portion used for owner/staff accommodation.

Are business rates and council tax the same?

Business rates are local taxes paid by the occupiers of all non-domestic/business property, in the same way that council tax is a tax on domestic property. Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories.