Business rates can be a significant expense for property owners, especially when a property sits empty The government charges business rates on commercial properties that are not occupied, and these rates can add up quickly However, there are ways to avoid paying business rates on empty property legally In this article, we will explore some strategies that property owners can use to reduce or eliminate their business rates liability on vacant properties.
One common way to avoid paying business rates on empty property is by claiming an exemption In some cases, empty properties may be eligible for a partial or full exemption from business rates for a certain period of time For example, properties undergoing substantial renovation or reconstruction work may qualify for an exemption for a set period Property owners can contact their local council to find out if their vacant property qualifies for an exemption and how to apply for it.
Another strategy to avoid business rates on empty property is by occupying the property temporarily Even if a property is only occupied for a short period, this can reset the clock on the business rates liability By finding a temporary tenant or using the property for a short-term purpose, property owners can avoid paying business rates on the vacant property This can be a particularly useful strategy for properties that are difficult to rent out on a long-term basis.
Property owners can also consider applying for business rates relief on their empty property There are various relief schemes available that can reduce the amount of business rates that property owners have to pay For example, properties with a rateable value below a certain threshold may be eligible for small business rate relief avoiding business rates on empty property. Property owners can also apply for hardship relief if they are experiencing financial difficulties and struggling to pay their business rates By exploring these relief options, property owners may be able to significantly reduce their business rates liability on empty property.
Furthermore, property owners can consider letting out the property to a charity or community organization to avoid paying business rates on the empty property Properties that are occupied by charities or used for community purposes are eligible for a 80% discount on business rates By letting out the property to a qualifying organization, property owners can reduce their business rates liability while also benefiting the community This can be a win-win solution for both property owners and charitable organizations.
Property owners can also explore the option of repurposing their vacant property to avoid paying business rates By changing the use of the property to a category that is exempt from business rates, property owners can eliminate their liability altogether For example, converting a commercial property into residential units may make it exempt from business rates Property owners should consult with a professional advisor to explore the feasibility of repurposing their vacant property to reduce or eliminate their business rates liability.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property legally By claiming exemptions, occupying the property temporarily, applying for relief, letting out the property to charities, or repurposing the property, property owners can reduce or eliminate their business rates liability on vacant properties It is important for property owners to explore these options and seek professional advice to ensure compliance with the regulations By taking proactive steps, property owners can minimize their expenses and maximize their returns on vacant properties.