Empty car parking spaces can be a valuable asset for businesses, particularly in urban areas where parking is at a premium However, many businesses are often surprised to find out that they may still be subject to business rates even if their parking spaces sit empty Understanding how these rates are calculated and what businesses can do to mitigate them is crucial for any organization that owns or operates car parking spaces.
Business rates are taxes that are paid by businesses on non-domestic properties, including parking spaces The rateable value of a property is used to calculate the business rates owed, and this value is determined by the Valuation Office Agency (VOA) in England, the Scottish Assessors Association in Scotland, and the Valuation and Lands Agency in Northern Ireland The rateable value takes into account factors such as the size, location, and usage of the property.
For empty car parking spaces, the rateable value may be based on a rental value that the space could potentially generate if it were leased out This means that even if a business is not currently earning any income from its parking spaces, it may still be liable to pay business rates on them This can come as a shock to businesses that may have assumed they could avoid paying rates on empty spaces.
So what can businesses do to avoid paying business rates on their empty parking spaces? One option is to apply for an exemption or relief In England, for example, empty properties with a rateable value of less than £2,900 are exempt from business rates for three months, after which a 100% discount is applied for a further three months This relief is intended to provide a buffer for businesses that may be struggling to find tenants or buyers for their properties.
Another option is to appeal the rateable value of the parking spaces empty car parking spaces business rates. Businesses can do this by submitting evidence to the VOA or relevant assessing authority to support their claim that the rateable value is too high This evidence could include comparable rental values of similar parking spaces in the area or details of any unique characteristics of the spaces that may affect their value.
Businesses may also be able to reduce their business rates liability by making changes to the actual use of the parking spaces For example, converting the spaces into a car park for employees or customers could make them eligible for different rates relief or exemptions Businesses should consult with their local assessing authority to understand what steps they can take to reduce their rates liability.
It’s worth noting that business rates on parking spaces can vary significantly depending on the location of the spaces In cities where parking is scarce, the rateable value may be higher than in rural areas with ample parking Businesses should be aware of these differences when budgeting for their rates liability and factor them into their financial planning.
Overall, understanding the implications of business rates on empty car parking spaces is essential for businesses that own or operate this type of property By knowing how rates are calculated, what exemptions and reliefs are available, and what steps can be taken to reduce liability, businesses can better manage their rates costs and ensure they are not caught off guard by unexpected bills.
In conclusion, empty car parking spaces can be a valuable asset for businesses, but they can also come with a cost in the form of business rates By understanding how these rates are calculated and what options are available for reducing liability, businesses can make informed decisions about their parking spaces and ensure they are not paying more than necessary.