How To Avoid Business Rates On Empty Property

Owning an empty property can be a financial burden, especially when it comes to paying business rates on it Business rates are taxes levied on non-residential properties like shops, offices, and warehouses However, there are ways to avoid or reduce these rates on empty properties In this article, we will discuss some tactics to help property owners minimize their business rates liability on empty properties.

One common way to avoid paying business rates on empty property is to apply for exemptions or reliefs There are several types of exemptions available, such as the small business rates relief, charitable relief, and rural rate relief Property owners should check if they are eligible for any of these exemptions and apply for them accordingly For example, if the property is occupied by a charity or it is in a rural area, the owner may qualify for relief on their business rates.

Another method to avoid paying full business rates on an empty property is to claim the empty property rate relief This relief allows owners of empty properties to receive a discount on their business rates for a certain period In England, for example, the relief is 100% for the first three months for most properties, and 50% after that However, property owners should be aware that this relief only applies for a limited period and may not be available in all regions.

Property owners can also consider leasing out the empty property to avoid paying business rates By letting out the property, the liability for business rates shifts to the tenant instead This can be a win-win situation for both parties, as the owner avoids paying rates on an empty property while the tenant gets to use the space for their business activities However, property owners should make sure to draw up a solid lease agreement that clearly states the responsibility for paying business rates.

In some cases, property owners may be able to claim vacant property relief, which provides a tax exemption on empty properties that are undergoing repair or structural alterations avoiding business rates on empty property. This relief can be claimed for up to 12 months, with the possibility of an extension in certain circumstances Property owners should keep in mind that they will need to provide evidence of the repair or alteration works being carried out to qualify for this relief.

Additionally, property owners can consider demolishing the empty property to avoid paying business rates on it Once the property is demolished, it will no longer be liable for business rates However, this option may not be suitable for all property owners, as it involves significant costs and planning Before deciding to demolish the property, owners should consider other alternatives and seek professional advice.

It is important for property owners to regularly review their business rates assessments for empty properties There have been cases where properties have been incorrectly classified or valued for business rates purposes, resulting in higher rates than necessary By challenging the assessment and providing evidence to support their case, property owners may be able to reduce their business rates liability on empty properties.

Finally, property owners should be aware of the consequences of leaving a property empty for an extended period In some regions, local authorities have the power to charge additional rates on long-term empty properties as a way to encourage owners to bring them back into use By staying informed about local regulations and actively seeking ways to reduce their business rates liability, property owners can minimize the financial impact of owning empty properties.

In conclusion, there are several strategies that property owners can employ to avoid or reduce business rates on empty properties By exploring exemptions, reliefs, leasing options, and other alternatives, owners can mitigate the financial burdens associated with owning empty properties It is important for property owners to stay informed about their options and seek professional advice when needed to ensure that they are not paying more than necessary in business rates on their empty properties.