Business rates are a tax on non-domestic properties in the UK. It is a significant cost that business owners have to bear, whether their property is occupied or empty. However, there are ways to avoid paying business rates on empty property legally. In this article, we will explore some strategies that can help business owners save money on business rates while their property is vacant.
One of the most common ways to avoid paying business rates on empty property is through exemptions and reliefs. The government offers certain exemptions for specific types of properties that are empty. For example, properties that are undergoing major repairs or structural changes may be eligible for an exemption from business rates for a certain period. This can provide business owners with some relief from the financial burden of paying business rates on empty property.
Another option for business owners looking to avoid paying business rates on empty property is to apply for a temporary exemption. This can be done by contacting the local council and providing information about why the property is empty and how long it is expected to remain vacant. If the council agrees that the property meets the criteria for a temporary exemption, business rates may be waived for a specified period.
Business owners can also consider leasing the property to a charity or community interest company to avoid paying business rates on empty property. Under certain circumstances, properties that are used by charities or non-profit organizations may be eligible for relief from business rates. By leasing the property to a qualifying organization, business owners can benefit from this relief while also contributing to a good cause.
Additionally, business owners can explore the option of applying for a hardship relief scheme to avoid paying business rates on empty property. If a business owner is facing financial hardship and struggling to pay business rates on a vacant property, they may be eligible for relief under a local hardship scheme. This can provide temporary relief from the burden of business rates while the property remains empty.
Another strategy for avoiding business rates on empty property is to explore the option of demolishing the property. In some cases, business owners may find that it is more cost-effective to demolish a vacant property than to pay business rates on it. By demolishing the property, business owners can avoid paying business rates altogether and potentially redevelop the land for a more profitable use in the future.
It is important for business owners to be proactive in managing their empty properties to avoid paying unnecessary business rates. Regularly checking the property and maintaining it to a good standard can help to demonstrate to the local council that efforts are being made to bring the property back into use. By taking steps to actively market the property for rent or sale, business owners can also show that they are actively seeking to minimize the time the property remains vacant.
In conclusion, there are several strategies that business owners can employ to avoid paying business rates on empty property. By taking advantage of exemptions, temporary reliefs, leasing to charities, applying for hardship schemes, or even demolishing the property, business owners can reduce the financial burden of business rates on vacant properties. It is essential for business owners to stay informed about the options available to them and to proactively manage their empty properties to avoid unnecessary costs. By implementing these strategies, business owners can save money and make the most of their vacant properties.