Business rates can be a significant financial burden for property owners, especially when their properties are sitting empty In the UK, owners of non-domestic properties are required to pay business rates whether the property is occupied or not However, there are ways to legally avoid paying business rates on empty property, and in this article, we will explore some of these strategies.
1 Temporary occupation
One way to avoid paying business rates on empty property is to temporarily occupy the space By allowing a temporary occupation of the property, even for a short period of time, you may be able to claim an exemption from business rates This could include allowing a pop-up shop, hosting events, or offering the space for community use Be sure to check with your local council on their specific requirements for temporary occupation to ensure eligibility for exemption.
2 Vacant property relief
In some cases, vacant property relief may be available to property owners who are experiencing difficulties in finding tenants for their empty properties This relief can provide a discount on business rates for a certain period of time, typically up to three or six months To qualify for vacant property relief, you may need to provide evidence that you are actively trying to rent out the property or that there are exceptional circumstances preventing you from doing so.
3 Charitable relief
If your empty property is being used by a registered charity for charitable purposes, you may be eligible for charitable relief on business rates This can provide a 80% discount on business rates, potentially saving you a significant amount of money To qualify for charitable relief, the charity must be using the property for charitable purposes and be registered with the relevant authorities.
4 Listed buildings exemption
If your empty property is a listed building, you may be able to claim an exemption from business rates Listed buildings are subject to special considerations and protections, and exemptions from business rates may be available to owners of these properties To qualify for a listed buildings exemption, you may need to provide evidence of the property’s listed status and any restrictions that may apply.
5 avoiding business rates on empty property. Small business rate relief
If you are a small business owner and your property is empty, you may be eligible for small business rate relief This relief can provide a discount on business rates for properties with a rateable value below a certain threshold To qualify for small business rate relief, you must meet the criteria set by the local council, such as having only one property or employing a certain number of people.
6 Development relief
If you are planning to redevelop or refurbish your empty property, you may be able to claim development relief on business rates This relief can provide a discount on business rates for a period of time while the property is undergoing development work To qualify for development relief, you may need to provide evidence of the development plans and timelines for completion.
7 Appeal against the rateable value
If you believe that the rateable value of your empty property is incorrect, you have the right to appeal against it By challenging the rateable value, you may be able to reduce your business rates liability or even claim an exemption It is important to gather supporting evidence and seek professional advice when appealing against the rateable value to improve your chances of a successful outcome.
In conclusion, there are several strategies that property owners can use to legally avoid paying business rates on empty property By exploring options such as temporary occupation, vacant property relief, charitable relief, listed buildings exemption, small business rate relief, development relief, and appealing against the rateable value, you may be able to reduce your financial burden and make the most of your empty property Be sure to research the specific requirements and guidelines set by your local council to ensure compliance with the regulations and maximize your savings.
By taking proactive steps and utilizing available relief schemes, property owners can navigate the complexities of business rates on empty property and minimize their financial obligations Remember that each case is unique, and it is important to seek professional advice to determine the best strategy for your specific circumstances With careful planning and informed decision-making, you can effectively manage your business rates liability and maximize your returns on your empty property