Business rates can be a significant cost for property owners, especially when a property sits empty for an extended period. In the United Kingdom, businesses are required to pay business rates on commercial properties that are not being used. However, there are some ways that property owners can legally reduce or even avoid paying business rates on empty property. In this article, we will explore some strategies for avoiding business rates on empty property.
One of the most common methods for avoiding business rates on empty property is by claiming an exemption. The law allows certain types of property to be exempt from business rates for a specific period of time. For example, newly constructed commercial properties are often exempt from business rates for the first three months after completion. Additionally, properties that are in the process of being renovated or undergoing structural repairs may also qualify for an exemption. Property owners should check with their local council to see if their empty property qualifies for any exemptions.
Another way to avoid paying business rates on empty property is by applying for vacant property relief. Vacant property relief can provide a 100% discount on business rates for a set period, typically between three and six months. To qualify for vacant property relief, the property must be unoccupied and the owner must be actively seeking to rent or sell the property. Property owners should contact their local council to apply for vacant property relief and provide evidence that the property is actively being marketed.
Property owners may also be able to avoid paying business rates on empty property by applying for hardship relief. Hardship relief is available to property owners who are experiencing financial difficulties and are struggling to pay their business rates. To qualify for hardship relief, property owners must demonstrate that paying business rates would cause undue financial hardship. Property owners should submit a hardship relief application to their local council along with supporting evidence, such as financial statements and bank statements.
Another option for avoiding business rates on empty property is by renting the property out for short-term use. Property owners can lease the property to temporary tenants for a short period, such as a popup shop or a seasonal event. By having tenants occupy the property, property owners may be able to qualify for temporary business rate relief. Temporary business rate relief allows properties to be exempt from business rates for a limited time while they are being used for a specific purpose.
Property owners can also consider demolishing the empty property to avoid paying business rates. Once a property has been demolished, it is no longer subject to business rates. However, property owners should be aware that there may be additional costs and requirements associated with demolishing a property, such as obtaining planning permission and complying with building regulations. Property owners should consult with a solicitor or a specialist in property law before proceeding with demolishing their empty property.
In conclusion, there are several strategies that property owners can employ to avoid paying business rates on empty property. By claiming exemptions, applying for vacant property relief, seeking hardship relief, renting the property out for short-term use, or demolishing the property, property owners can reduce or eliminate the financial burden of business rates on empty property. Property owners should consult with their local council and seek advice from legal and financial professionals to determine the best course of action for their specific situation. With careful planning and proactive management, property owners can successfully avoid business rates on empty property and minimize their financial liabilities.
Remember, avoiding business rates on empty property is legal as long as property owners adhere to the relevant regulations and requirements set forth by the local council. By taking advantage of available exemptions and relief programs, property owners can reduce their financial burden and protect their investment in empty property.