Business rates can be a significant burden for property owners, especially when the property sits empty. In the UK, owners of commercial and industrial properties are required to pay business rates on empty properties, which can add up to a substantial sum over time. However, there are several strategies that property owners can use to legally avoid paying business rates on empty property. In this article, we will discuss some of the most effective ways to minimize or eliminate business rates on empty property.
One of the simplest ways to avoid paying business rates on empty property is to claim an exemption. In England, properties with a rateable value of less than £2,900 are currently exempt from business rates, and properties owned by charities or community amateur sports clubs may also be exempt. If your property falls into one of these categories, you may be able to apply for an exemption and avoid paying business rates altogether.
Another option for avoiding business rates on empty property is to seek relief through the government’s Small Business Rates Relief scheme. This scheme provides relief for businesses with a rateable value below a certain threshold, which currently stands at £12,000 in England. If your property falls below this threshold and meets the other requirements of the scheme, you may be able to claim relief and significantly reduce your business rates bill.
For properties that are undergoing renovation or redevelopment, another option for avoiding business rates on empty property is to apply for a temporary exemption. Properties that are undergoing major works or structural changes may be eligible for a temporary exemption from business rates for a period of up to three months. This can provide property owners with some breathing room while they carry out essential work on the property.
If your property has been empty for an extended period of time and you are struggling to find a tenant, you may be able to claim a temporary exemption from business rates under certain circumstances. In England, properties that have been empty for more than three months may be eligible for a 100% exemption from business rates for a period of up to six months. This can provide property owners with some financial relief while they continue to search for a tenant.
In some cases, property owners may be able to avoid paying business rates on empty property by applying for a hardship relief. This type of relief is granted in exceptional circumstances where the property owner can demonstrate that paying business rates would cause them undue financial hardship. While hardship relief is not commonly granted, property owners who are facing genuine financial difficulties may be able to successfully apply for relief and avoid paying business rates on their empty property.
For property owners who are struggling to find tenants for their empty properties, another option for avoiding business rates is to consider leasing the property on a short-term basis. By leasing the property for a short period of time, property owners may be able to avoid paying business rates on the property while still generating some income. This can be a viable option for property owners who are looking to minimize their costs while they continue to search for a long-term tenant.
In conclusion, there are several strategies that property owners can use to legally avoid paying business rates on empty property. From claiming exemptions and relief to applying for temporary exemptions and hardship relief, property owners have a range of options available to them. By carefully considering their circumstances and exploring all available avenues, property owners can minimize or eliminate their business rates bill on empty property and reduce their financial burden.