Business rates can be a significant expense for property owners, especially when they are charged on empty properties. Whether you are a landlord with vacant commercial space or a business owner with unused premises, avoiding business rates on empty property can be a cost-saving strategy. In this article, we will explore various ways to legally reduce or eliminate business rates on empty property.
Business rates are taxes that commercial property owners must pay to local authorities. These rates are charged on non-domestic properties like shops, offices, warehouses, and factories. However, if a property becomes empty and unoccupied, the owner may be eligible for relief on the business rates.
One common method to avoid paying business rates on empty property is to apply for empty property relief. This relief allows property owners to claim a 100% exemption from business rates for a certain period, usually three or six months. After this initial exemption period, the property owner may still qualify for a 50% discount on business rates.
To qualify for empty property relief, property owners must meet certain criteria set by the local authority. In most cases, the property must be completely unoccupied and unfurnished to be eligible for relief. Additionally, the property owner must prove that they are actively seeking to rent or sell the property.
Another way to avoid paying business rates on empty property is to apply for hardship relief. Hardship relief is granted to property owners who are facing financial difficulties and are unable to pay the full amount of business rates. This relief is usually granted on a case-by-case basis and may require the property owner to provide detailed financial information to the local authority.
Property owners can also consider leasing the empty property to a charity. Charities are eligible for an 80% discount on business rates for properties they occupy. By leasing the empty property to a charity, the property owner can benefit from a reduced business rates bill while also supporting a good cause.
Alternatively, property owners can explore the option of demolishing the empty property. Properties undergoing redevelopment or reconstruction are exempt from paying business rates for a certain period. This exemption period varies depending on the extent of the redevelopment project and may last up to three years.
If demolishing the property is not a feasible option, property owners can consider temporary uses for the empty property. For example, the property could be used for pop-up shops, events, or community projects. By actively using the property for temporary purposes, the property owner may be able to qualify for temporary use relief on business rates.
It is important for property owners to stay informed about changes in business rates regulations. Local authorities may introduce new policies or relief schemes that could benefit property owners with empty properties. By keeping up to date with these changes, property owners can take advantage of any available opportunities to reduce their business rates bill.
In conclusion, there are several legitimate ways to avoid paying business rates on empty property. Property owners can consider applying for empty property relief, hardship relief, or leasing the property to a charity. They can also explore options like demolition, temporary use, or staying informed about changes in business rates regulations. By taking proactive steps to reduce or eliminate business rates on empty property, property owners can save money and make their properties more financially viable.