Business rates can be a major expense for property owners, especially when a property is sitting empty. However, there are ways to legally avoid paying business rates on empty property. By understanding the rules and regulations surrounding empty property rates, property owners can save themselves a significant amount of money. In this article, we will explore some of the key strategies for avoiding business rates on empty property.
Under current regulations in the UK, business rates must be paid on most commercial properties, regardless of whether they are occupied or vacant. This includes shops, offices, warehouses, and other types of business premises. However, there are some exceptions to this rule when it comes to empty properties.
One of the most common ways to avoid paying business rates on empty property is by applying for empty property relief. This relief allows property owners to receive a temporary exemption from paying business rates on their empty property. The length of the exemption period varies depending on the type of property and the local authority, but it is typically around three or six months for most commercial properties.
To qualify for empty property relief, property owners must meet certain criteria set out by the local authority. This usually includes keeping the property in a good state of repair and ensuring that it is secure and not a danger to the public. Property owners may also be required to provide evidence that they are actively seeking to rent out or sell the property.
Another way to avoid paying business rates on empty property is by claiming hardship relief. This type of relief is available to property owners who are experiencing financial hardship and are unable to pay their business rates. To qualify for hardship relief, property owners must demonstrate that they are suffering from severe financial difficulties and provide evidence of their financial situation.
Property owners can also avoid paying business rates on empty property by applying for charitable relief. This type of relief is available to properties that are being used for charitable purposes, such as community centers, charity shops, and other non-profit organizations. To qualify for charitable relief, property owners must demonstrate that the property is being used for charitable purposes and provide evidence of their charitable status.
Additionally, property owners can avoid paying business rates on empty property by taking advantage of small business rate relief. This relief is available to properties with a rateable value below a certain threshold and can significantly reduce the amount of business rates that property owners are required to pay. To qualify for small business rate relief, property owners must meet certain criteria set out by the local authority.
It’s important for property owners to be proactive in seeking out these forms of relief to avoid paying business rates on empty property. By staying informed about the rules and regulations surrounding empty property rates, property owners can take advantage of the available relief options and save themselves a significant amount of money.
In conclusion, there are several ways for property owners to avoid paying business rates on empty property. By applying for empty property relief, hardship relief, charitable relief, or small business rate relief, property owners can legally reduce or eliminate their business rates liability. It’s important for property owners to stay informed about the available relief options and to take advantage of them to save money on their empty properties.