Business rates can be a significant financial burden for property owners, especially when a property sits empty for an extended period. In some cases, the costs of paying business rates on an empty property can outweigh any potential income from renting out the space. Fortunately, there are ways to legally avoid paying business rates on empty property. In this article, we will explore some strategies that property owners can use to minimize their business rates liability.
One of the most common ways to avoid business rates on empty property is to apply for an exemption. In England and Wales, for example, properties that are empty and have a rateable value of less than £2,900 are eligible for an exemption from business rates. This exemption lasts for three months and can be extended for a further three months if certain conditions are met. It’s important to note that different rules may apply in Scotland and Northern Ireland, so property owners should check with their local authority for specific guidance.
Another option for avoiding business rates on empty property is to apply for a temporary exemption. In England, for example, properties that are undergoing major repair or structural alterations may be eligible for a temporary exemption from business rates. This exemption lasts for up to 12 months, with the possibility of an extension in certain circumstances. Again, property owners should check with their local authority to determine if their property qualifies for this type of exemption.
Property owners can also reduce their business rates liability by actively marketing their empty property for sale or rent. In some cases, properties that are actively being marketed may be eligible for a 50% discount on their business rates for up to six months. This discount applies to properties that have been empty for at least three months and are actively being marketed with a view to letting or selling the space.
Alternatively, property owners can consider leasing their empty property to a charity or community organization. Properties that are used for charitable purposes can be eligible for an 80% discount on their business rates. This can be a win-win situation for both the property owner and the charity, as the property owner reduces their business rates liability while the charity benefits from a potentially reduced rental cost.
Another strategy for avoiding business rates on empty property is to explore the possibility of turning the space into a pop-up shop or temporary gallery. Properties that are used for temporary purposes may be eligible for a 100% discount on their business rates for up to two years. This can provide property owners with a creative and cost-effective way to make use of their empty space while avoiding business rates liability.
It’s essential for property owners to stay informed about changes to business rates legislation and to regularly review their options for minimizing their business rates liability. Local authorities may offer additional discounts or exemptions for empty properties, so it’s a good idea to stay in touch with them to explore all available options.
In conclusion, there are several strategies that property owners can use to legally avoid paying business rates on empty property. From applying for exemptions and discounts to actively marketing the space or exploring temporary uses, property owners have options for reducing their business rates liability. By staying informed and proactive, property owners can make the most of their empty properties while minimizing their financial burden.