Business rates can be a significant expense for property owners, especially when a property is sitting empty However, there are ways to legally avoid paying business rates on empty property In this article, we will discuss some strategies that property owners can use to minimize their business rates liability on vacant properties.
First, it’s important to understand the rules and regulations regarding business rates on empty property In the UK, most commercial properties are subject to business rates, which are a tax based on the rateable value of the property However, there are exemptions and reliefs available for empty properties, which can help property owners reduce or eliminate their business rates liability.
One common exemption for empty properties is the “empty property rate relief.” Under this relief, eligible properties can receive a 100% exemption from business rates for a specified period of time In England, this period is generally the first three months that a property is empty After this initial period, the property owner may be eligible for further discounts on their business rates, depending on the property’s circumstances.
To qualify for empty property rate relief, the property must be unoccupied and unfurnished It’s important to note that minor works of repair or maintenance do not disqualify a property from this relief However, if the property is being used for storage, it may not be eligible for empty property rate relief Property owners should check with their local council to determine if their property meets the criteria for this exemption.
Another way to avoid paying business rates on empty property is to explore other available reliefs and exemptions For example, properties that are being refurbished or undergoing structural alterations may qualify for a temporary exemption from business rates Additionally, properties that are deemed unsuitable for occupation due to their poor condition or location may be eligible for a discretionary rate relief avoiding business rates on empty property. Property owners should consult with their local council to see if they qualify for any additional reliefs or exemptions.
One strategy that some property owners use to avoid paying business rates on empty property is to lease or license the property to a charity or community group Charities are eligible for an 80% discount on business rates, which can significantly reduce the property owner’s liability By entering into a lease or license agreement with a charity, the property owner can benefit from this discount while still maintaining control over the property.
Alternatively, property owners may consider renting out the empty property on a short-term basis to avoid paying business rates Short-term lettings of less than six weeks are exempt from business rates, as long as the property is unoccupied for the rest of the time Property owners can use platforms like Airbnb or other short-term rental websites to find tenants for their empty property and generate some income while avoiding business rates.
It’s also worth considering the option of demolishing the empty property to avoid paying business rates Once a property has been demolished, it is no longer liable for business rates However, property owners should be aware that there may be restrictions and regulations governing the demolition of buildings, so it’s important to consult with a professional before taking this step.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property By exploring exemptions, reliefs, and alternative uses for their property, owners can minimize their business rates liability and potentially generate income from their vacant properties It’s important to research and understand the options available and consult with professionals to ensure compliance with all regulations and requirements With careful planning and strategic decision-making, property owners can reduce the financial burden of business rates on empty property and make the most of their real estate investments.