Empty properties can be a financial burden on business owners, especially when they are also required to pay business rates on these properties However, there are ways to legally avoid paying business rates on empty property, saving you money and stress In this article, we will explore some strategies to help you avoid business rates on your vacant property.
Firstly, it’s important to understand why business rates are charged on empty property Business rates are taxes that are charged on most non-domestic properties, including commercial buildings and business premises These rates are calculated based on the rateable value of the property and are typically paid by the occupier or owner of the property.
When a property becomes empty, business rates are still charged unless the property meets certain criteria for exemption In England, properties that have been empty for three months or more are subject to business rates at the full rate This can be a significant financial burden for business owners, especially if the property remains vacant for an extended period of time.
However, there are ways to avoid paying business rates on empty property One common strategy is to apply for an exemption or reduction in business rates In England, properties that are vacant and being actively marketed for sale or rental may qualify for a 100% exemption from business rates for up to three months This can provide temporary relief for businesses that are struggling to find a new tenant or buyer for their property.
Another option is to apply for a temporary occupation exemption If someone occupies the property for a short period of time, such as for repairs or maintenance, this can trigger an exemption from business rates for the duration of the occupation avoiding business rates on empty property. This can be a useful strategy for businesses that need to carry out essential work on their property but want to avoid paying business rates during this time.
Business owners can also consider demolishing or substantially reconstructing the property to avoid paying business rates In England, properties that are undergoing major structural changes may qualify for a reduction in business rates This can be a costly and time-consuming process, but it can provide long-term savings for business owners who are willing to invest in their property.
Some businesses may also be eligible for small business rate relief, which provides a discount on business rates for properties with a rateable value below a certain threshold This can be a valuable option for small businesses that are struggling to pay their business rates on empty property.
In some cases, business owners may be able to negotiate with their local council to reach a more favorable payment arrangement for their business rates Councils have the discretion to offer payment plans or other solutions to help businesses that are facing financial difficulties It’s always worth exploring these options before resorting to extreme measures to avoid paying business rates.
Another option to avoid paying business rates on empty property is to consider leasing the property to a charity or community group Properties that are occupied by charities or community groups are eligible for an 80% discount on business rates, which can provide significant savings for business owners This can be a win-win situation for both parties, as the charity or community group benefits from a reduced rate while the business owner avoids paying full business rates on an empty property.
In conclusion, there are several strategies that business owners can use to avoid paying business rates on empty property From applying for exemptions and reductions to negotiating with the local council or leasing the property to a charity, there are options available to help businesses save money and reduce the financial burden of empty properties By exploring these options and taking proactive steps to manage their business rates, business owners can protect their finances and ensure the long-term success of their business.