When it comes to owning commercial properties, one of the biggest challenges is dealing with business rates on empty properties Business rates are a tax that owners of non-residential properties in the UK are required to pay, even if the property is vacant These rates can add up quickly and become a significant financial burden for property owners However, there are ways to legally avoid paying business rates on empty properties In this article, we will discuss five strategies to help you minimize or eliminate these costs.
1 Claiming Empty Property Relief
One of the most common ways to avoid paying business rates on empty property is to claim Empty Property Relief This relief can provide a significant reduction in the amount of rates that you are required to pay In general, you can receive 100% relief for the first three months that your property is empty, and 50% relief for the subsequent three months After six months, you may be required to pay the full amount of business rates However, there are some exceptions to this rule, so it’s important to check with your local council to see if you qualify for additional relief.
2 Developing the Property
Another effective way to avoid business rates on empty property is to develop the property By making improvements or renovations to the property, you can potentially qualify for a temporary exemption from paying rates The key is to demonstrate to your local council that the property is being actively developed and that you have a clear plan in place for its use This strategy not only helps you save money on rates but also adds value to your property in the long run.
3 Letting the Property for Temporary Use
If you’re struggling to find a long-term tenant for your empty property, consider letting it for temporary use This could include hosting events, pop-up shops, or even allowing temporary storage in the space avoiding business rates on empty property. By doing so, you may be able to qualify for rates relief under the Temporary Disuse Relief scheme This scheme allows property owners to receive relief for up to six months while the property is being used for temporary purposes It’s a win-win situation since you can generate some income from the property while also avoiding paying full business rates.
4 Applying for Charitable Relief
If you own an empty property that is being used for charitable purposes, you may be eligible for Charitable Relief on your business rates This relief can provide up to 80% reduction in rates for properties that are occupied by a registered charity or a non-profit organization To qualify for this relief, you will need to provide evidence of the charitable activities taking place in the property This is a great way to support a good cause while also saving money on business rates.
5 Utilizing Small Business Rates Relief
If you are a small business owner and own an empty property, you may be eligible for Small Business Rates Relief This relief is designed to help small businesses that operate from one property with a rateable value of less than £15,000 If you meet the criteria, you can receive up to 100% relief on your business rates for the property This can be a significant cost-saving measure for small business owners who are struggling to keep up with expenses during periods of vacancy.
In conclusion, paying business rates on empty property can be a significant financial burden for property owners However, by utilizing the strategies mentioned above, you can minimize or even eliminate these costs Whether you’re claiming Empty Property Relief, developing the property, letting it for temporary use, applying for Charitable Relief, or utilizing Small Business Rates Relief, there are options available to help you avoid paying full business rates on empty properties Remember to check with your local council to see which relief schemes you qualify for and take advantage of them to save money and maximize the value of your property.