When it comes to owning property for business purposes, one of the challenges that owners often face is the burden of business rates on empty property. Business rates are taxes that business owners have to pay on most non-domestic properties, including offices, shops, warehouses, and factories. These rates can be a significant financial strain, especially when the property is sitting empty and not generating any income.
However, there are some ways that property owners can avoid or reduce the business rates on their empty properties. By taking advantage of certain exemptions and reliefs, property owners can save themselves a significant amount of money while their properties remain unoccupied. In this article, we will explore some of the ways in which property owners can avoid business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is by taking advantage of the small business rate relief. This relief is available to businesses that only use one property and have a rateable value of less than £15,000. If your property meets these criteria, you may be eligible for a discount on your business rates, or even be exempt from paying them altogether.
Another way to avoid business rates on empty property is by claiming an exemption for certain types of vacant properties. For example, properties that are undergoing major structural repairs or are newly built and waiting to be occupied may be eligible for an exemption from business rates. Property owners can also apply for temporary exemptions if they can prove that they are actively seeking tenants for their empty properties.
Property owners can also consider demolishing or redeveloping their empty properties in order to avoid paying business rates. By obtaining planning permission for a new development or demolishing the existing structure, property owners can qualify for a demolition relief, which can provide a significant reduction in business rates for a certain period of time. This can be a costly and time-consuming process, but it can ultimately save property owners money in the long run.
Another option for avoiding business rates on empty property is to consider leasing the property to a charity or community group. Properties that are used for charitable purposes are eligible for a mandatory 80% discount on business rates, which can provide significant savings for property owners. By leasing the property to a charity or community group, property owners can not only avoid paying business rates but also contribute to a good cause in their community.
Property owners can also consider renting out their empty properties for short-term uses, such as pop-up shops, events, or temporary storage. By renting out the property for short periods of time, property owners can avoid paying business rates on the property while still generating some income. This can be a creative way to make use of empty properties and avoid the financial burden of business rates.
Overall, there are several ways in which property owners can avoid paying business rates on empty property. By taking advantage of exemptions, reliefs, and creative solutions, property owners can save themselves a significant amount of money while their properties remain unoccupied. It’s important for property owners to explore all of their options and consult with a professional to determine the best strategy for avoiding business rates on their empty properties. By being proactive and resourceful, property owners can successfully navigate the challenges of owning empty property and minimize the financial impact of business rates.