Business rates can be a significant expense for property owners, especially when a property sits empty. In the United Kingdom, owners of commercial properties are required to pay business rates on any empty property, which can be a costly burden. However, there are legal ways to avoid paying business rates on empty property, saving owners money and reducing financial strain. Here are some tips and strategies for avoiding business rates on empty property.
One common method for avoiding business rates on empty property is to apply for an exemption or relief. Certain types of properties may be eligible for exemptions from paying business rates, such as listed buildings or properties with a rateable value below a certain threshold. Owners can also apply for temporary empty property relief, which provides a 100% discount on business rates for the first three months that a property is empty. After the initial three-month period, owners can still receive a 50% discount on business rates for a further three months, easing the financial burden of an empty property.
Another way to avoid paying business rates on empty property is to actively market the property for rent or sale. If owners can demonstrate that they are actively seeking tenants or buyers for the property, they may be able to claim an exemption from paying business rates. This shows that the property is not intentionally being left empty to avoid paying rates, but rather that efforts are being made to bring in tenants or buyers. Keeping records of marketing efforts, such as advertising listings or arranging viewings, can strengthen a case for exemption from business rates.
Owners can also consider leasing the property to a charity or community amateur sports club as a way to avoid paying business rates on empty property. Properties that are occupied by registered charities or amateur sports clubs are eligible for an 80% discount on business rates, reducing the financial burden on owners. By leasing the property to a qualifying organization, owners can not only avoid paying business rates on an empty property but also support a charitable cause or community group.
For owners who are unable to find tenants or buyers for an empty property, there is still a way to reduce the impact of business rates. The government introduced a scheme called the Unoccupied Property Rate, which allows owners of certain types of empty properties to apply for a 100% discount on business rates for a set period of time. This can provide owners with some relief from the financial burden of business rates on empty property, allowing them more time to find a suitable tenant or buyer.
It is important for property owners to stay informed about changes in business rates regulations and exemptions. By keeping up to date with the latest information, owners can take advantage of any new opportunities to reduce or avoid paying business rates on empty property. Seeking advice from a professional, such as a chartered surveyor or tax advisor, can also help owners navigate the complex rules and regulations surrounding business rates.
In conclusion, there are several strategies that property owners can employ to avoid paying business rates on empty property. From applying for exemptions and relief to actively marketing the property or leasing it to a qualifying organization, there are legal ways to reduce the financial burden of business rates on empty property. By staying informed and seeking professional advice when needed, owners can successfully navigate the regulations and save money on business rates. avoiding business rates on empty property is possible with careful planning and proactive management.