Business rates on empty properties can be a significant financial burden for property owners. When a property is unoccupied, the owner is still required to pay business rates, which can add up to a substantial amount over time. However, there are ways to avoid paying business rates on empty property legally. In this article, we will discuss some of the strategies that property owners can use to minimize or eliminate their business rates liability.
One of the most effective ways to avoid paying business rates on empty property is to qualify for an exemption. In some cases, properties that are unoccupied for a certain period of time may be eligible for a temporary exemption from business rates. This exemption is typically for a period of three or six months, depending on the local authority’s policies. Property owners should check with their local council to see if their property qualifies for this exemption and how to apply for it.
Another option for avoiding business rates on empty property is to utilize the Small Business Rates Relief scheme. This scheme allows businesses with a rateable value of less than £15,000 to apply for a discount on their business rates. If the property is unoccupied, the owner may still be able to qualify for this relief, as long as they meet the criteria set by the local council. Property owners should check with their local council to see if they are eligible for Small Business Rates Relief and how to apply for it.
Property owners can also consider leasing their empty property to a charity or community group in order to qualify for an exemption from business rates. Properties that are occupied by charities or community groups for certain purposes may be eligible for charitable relief from business rates. This can be a win-win situation for both the property owner and the charity, as the property owner avoids paying business rates while the charity benefits from having a space to operate.
Another strategy for avoiding business rates on empty property is to actively market the property for sale or lease. If the property is actively being marketed, the owner may be able to claim an exemption from business rates for up to 12 months. Property owners should keep records of their marketing efforts, such as advertising the property online or in local newspapers, to prove to the local council that the property is being actively marketed.
Property owners can also consider demolishing the empty property in order to avoid paying business rates. Properties that are undergoing demolition are exempt from business rates, as long as the demolition is being carried out with the intention of redeveloping the site. Property owners should consult with their local council and seek planning permission before demolishing the property to ensure that they are complying with all regulations.
In some cases, property owners may be able to negotiate with their local council to reduce their business rates liability on empty property. Property owners can provide evidence of the property’s condition, market value, and any financial difficulties they may be facing in order to negotiate a lower rate. While this strategy may not always be successful, it is worth exploring as a potential option for reducing business rates on empty property.
Overall, there are several strategies that property owners can use to avoid paying business rates on empty property. By qualifying for exemptions, applying for relief schemes, leasing to charities, actively marketing the property, demolishing the property, or negotiating with the local council, property owners can minimize or eliminate their business rates liability and save money in the long run. It is important for property owners to stay informed about their options and work closely with their local council to ensure that they are complying with all regulations and maximizing their savings on business rates.