When you own a commercial property, whether it’s a store, an office building, or a warehouse, you are required to pay business rates on that property. These rates can be a significant financial burden, especially if the property sits empty for an extended period of time. However, there are ways to legally avoid paying business rates on empty property. In this article, we will explore some of the strategies that property owners can use to minimize their business rates liability.
One of the most common ways to avoid paying business rates on empty property is to take advantage of the Small Business Rates Relief scheme. This scheme is designed to provide relief to small businesses with low rateable values. If your property has a rateable value below a certain threshold, you may be eligible for a discount or complete exemption from business rates. By applying for Small Business Rates Relief, you can significantly reduce the amount of money you owe on your empty property.
Another option for avoiding business rates on empty property is to temporarily occupy the space with a charity or community group. Under current legislation, properties that are being used by charities or community groups for certain purposes are eligible for a 100% exemption from business rates. By allowing a charity to use your empty property for a short period of time, you can avoid paying business rates while also contributing to a good cause.
Alternatively, property owners can consider renovating their empty property to make it more attractive to potential tenants. By investing in improvements such as a new coat of paint, updated fixtures, or enhanced security measures, you can increase the likelihood of finding a tenant for your space. Once the property is occupied, you will no longer be liable for business rates on the property.
If you are unable to find a tenant for your empty property, you may still be able to avoid paying business rates by claiming an exemption for properties that are undergoing substantial repair work. Properties that are in need of major repairs or renovations may qualify for a 100% exemption from business rates for a period of up to 12 months. This exemption allows property owners to focus on improving the condition of their property without worrying about the financial burden of business rates.
In some cases, property owners may be able to apply for a hardship relief waiver to reduce their business rates liability on empty property. Hardship relief waivers are typically granted in situations where property owners are experiencing significant financial difficulties and are unable to pay their business rates. By providing evidence of their financial hardship, property owners may be able to secure a temporary reduction or suspension of their business rates payments.
It’s important to note that property owners cannot simply leave their property empty indefinitely in an attempt to avoid paying business rates. The government has strict rules in place to prevent property owners from exploiting tax loopholes and circumventing their business rates obligations. If you fail to adhere to these regulations, you may face fines or legal action from the local council.
In conclusion, there are several strategies that property owners can employ to legally avoid paying business rates on empty property. By taking advantage of schemes such as Small Business Rates Relief, allowing charities to use the space, investing in renovations, claiming exemptions for properties undergoing repair work, or applying for hardship relief waivers, property owners can reduce their business rates liability and minimize their financial burden. It’s important to consult with a tax professional or legal advisor to ensure that you are in compliance with all regulations and to explore all available options for reducing your business rates payments.