Business rates can be a significant burden for property owners, especially when a property is sitting empty. Empty properties are still subject to business rates, which can add up to thousands of pounds in expenses each year. However, there are ways to legally avoid paying business rates on empty property. In this article, we will explore some strategies that property owners can use to minimize their business rate liabilities.
One common method of avoiding business rates on empty property is to apply for an exemption or relief. There are several types of exemptions and reliefs available, depending on the circumstances of the property. For example, properties that are undergoing major repair or structural work may be eligible for a temporary exemption. Similarly, properties that are being used for certain charitable purposes may qualify for relief from business rates.
Property owners should also be aware of the “Small Business Rate Relief” scheme, which provides relief for properties with a rateable value below a certain threshold. This scheme can significantly reduce the amount of business rates that need to be paid on empty property. Additionally, there are other specific reliefs available for certain types of property, such as listed buildings or properties in rural areas.
Another strategy for avoiding business rates on empty property is to actively market the property for rent or sale. By demonstrating that efforts are being made to find a tenant or buyer, property owners may be able to secure a temporary exemption from business rates. This exemption typically lasts for three months, with the possibility of extension if the property remains vacant.
Property owners should also consider exploring the option of letting the property out on a short-term basis. By entering into a short-term lease agreement with a tenant, even if only for a few months, property owners can avoid paying business rates on empty property. This can be a useful strategy for properties that are likely to be vacant for a short period of time, such as seasonal businesses or properties undergoing refurbishment.
In some cases, property owners may choose to demolish the existing building on their property in order to avoid paying business rates. Once the building has been demolished, the property may be eligible for an exemption from business rates for a period of up to 18 months. However, property owners should be aware that this strategy can be costly and time-consuming, so it may not be the best option for every situation.
It is important for property owners to keep in mind that there are strict rules and regulations governing business rates on empty property. Failure to comply with these rules can result in hefty fines and penalties. Property owners should make sure to stay informed about the latest changes to business rates legislation and seek advice from a professional if necessary.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By exploring exemptions, reliefs, short-term leasing, and other options, property owners can minimize their business rate liabilities and reduce their financial burden. It is important for property owners to stay proactive and informed in order to make the most of these opportunities. With careful planning and consideration, property owners can successfully navigate the complex world of business rates and ensure that their empty properties remain a valuable asset rather than a financial burden.