Business rates are a significant expense for many property owners, and owners of empty properties are often hit hardest. Vacant business properties are still subject to business rates, which can be a financial burden for businesses that are struggling to fill their space. Fortunately, there are some strategies that property owners can employ to avoid paying business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is to take advantage of the exemptions and reliefs that are available. Most empty properties are eligible for a three-month exemption from business rates, which can provide some temporary relief for property owners. Additionally, some properties may be eligible for longer-term exemptions or reliefs, such as properties that are undergoing renovations or properties that are being advertised for sale or rent.
Another strategy for avoiding business rates on empty property is to actively market the property for sale or rent. By demonstrating that the property is actively being marketed, property owners can qualify for a 50% discount on their business rates bill. Property owners should ensure that they are keeping detailed records of their marketing efforts, such as listing the property on websites, contacting potential tenants or buyers, and scheduling viewings.
Property owners can also explore the option of applying for discretionary rate relief. Local councils have the authority to grant discretionary rate relief in certain circumstances, such as when a property owner is experiencing financial hardship or if the property is in a designated enterprise zone. Property owners should contact their local council to inquire about the possibility of applying for discretionary rate relief.
Another strategy for avoiding business rates on empty property is to consider demolishing the property. Empty properties that are in a state of disrepair or that are no longer viable for use may be eligible for relief from business rates if they are demolished. Property owners should consult with their local council to determine if their property qualifies for relief under these circumstances.
In some cases, property owners may choose to lease their empty property to a charity or community group. Properties that are leased to registered charities are eligible for an 80% discount on their business rates bill. By leasing their property to a charity, property owners can not only avoid paying full business rates on their empty property but also support a worthy cause in their community.
Property owners should also consider taking advantage of the government’s Small Business Rate Relief scheme. Under this scheme, businesses with a rateable value of £12,000 or less may qualify for relief from business rates. Property owners who are struggling to fill their empty property may be able to take advantage of this relief by temporarily occupying the property with a small business or startup.
Lastly, property owners should be aware of the consequences of leaving a property vacant for an extended period of time. In addition to the financial burden of paying business rates on empty property, vacant properties can also attract vandalism, squatting, and other security risks. Property owners should take steps to secure their property and regularly inspect the premises to prevent any issues that may arise from leaving the property empty.
In conclusion, there are several strategies that property owners can employ to avoid paying business rates on empty property. By taking advantage of exemptions and reliefs, actively marketing the property, applying for discretionary rate relief, demolishing the property, leasing to a charity, and considering Small Business Rate Relief, property owners can mitigate the financial burden of business rates on empty property. It is important for property owners to stay informed about the options available to them and to take proactive steps to avoid unnecessary expenses on their vacant properties.