When it comes to owning commercial property, one of the biggest hurdles can be the hefty business rates that come along with it. These rates can be quite a burden, especially when a property is sitting empty and not generating any income. However, there are ways to legally avoid paying business rates on empty property. In this article, we will explore some of the options available to property owners looking to reduce or eliminate their business rates on vacant premises.
One of the most common and straightforward ways to avoid business rates on empty property is by applying for an exemption. In the United Kingdom, for example, properties that are unoccupied for a certain period of time may qualify for a full exemption from business rates for a specified period. This exemption period can vary depending on the location of the property and the local council regulations. Property owners should check with their local council to determine if they are eligible for any exemptions and what the requirements are for applying.
Another option for reducing business rates on empty property is by taking advantage of the Government’s Empty Property Rate Relief scheme. Under this scheme, eligible property owners can receive a 100% discount on their business rates for a limited period of time, usually up to three months for industrial properties and six months for all other types of commercial property. Property owners must apply for this relief through their local council and provide evidence that the property is genuinely empty and not being used for any business activities.
Property owners should also consider making use of the various property relief schemes available to them. For example, properties undergoing major renovation or structural repairs may qualify for relief under the Repair Relief scheme, which allows property owners to claim a discount on their business rates until the works are completed. Similarly, properties that are being marketed for sale or lease may qualify for the Empty Property Relief scheme, which provides a 100% discount on business rates for a specified period of time while the property is actively being marketed.
In addition to these relief schemes, property owners can also explore other ways to reduce their business rates on empty property. For example, if the property is in a state of disrepair or poses a health and safety risk, owners may be able to argue for a reduction in their business rates based on the diminished value of the property. Property owners should document any issues with the property and seek professional advice to make a strong case for a reduction in their rates.
Furthermore, property owners should consider leasing out their empty property to a charity or community organisation. In the UK, properties that are occupied by registered charities or community interest companies may qualify for mandatory relief of 80% on their business rates. By leasing out their property to a qualifying organisation, property owners can not only reduce their rates but also contribute to the local community.
It is important for property owners to stay informed about changes to business rates legislation and to regularly review their options for reducing or avoiding business rates on empty property. By taking advantage of available relief schemes, exemptions, and other strategies, property owners can mitigate the financial burden of owning empty property and make the most of their investments.
In conclusion, there are several ways for property owners to avoid paying business rates on empty property. By applying for exemptions, taking advantage of relief schemes, and exploring other options for reducing rates, owners can significantly reduce the financial impact of owning vacant premises. Property owners should stay proactive in managing their empty properties and seek professional advice when needed to ensure they are not paying more in business rates than necessary.