How To Avoid Business Rates On Empty Property

Empty properties can be a burden for business owners, especially when they are faced with the additional cost of business rates. Business rates are a tax on commercial properties that are payable by the owner or occupier. However, there are ways to avoid paying business rates on empty property. In this article, we will discuss some of the strategies that business owners can use to minimize or eliminate their business rates liability.

One of the most common ways to avoid paying business rates on empty property is to claim an exemption. In the UK, most empty properties are exempt from paying business rates for the first three months. This initial three-month period gives property owners some time to secure a new tenant or buyer before they are required to start paying business rates. Additionally, some properties may be eligible for longer periods of exemption, such as industrial properties, which are exempt for the first six months.

Another strategy for avoiding business rates on empty property is to apply for a hardship relief. Hardship relief is available for properties that are suffering from exceptional circumstances, such as a downturn in the local economy or a major disaster. Property owners can apply for hardship relief from their local council, providing evidence of the hardship that they are facing. If successful, the council may grant a reduction or exemption on the business rates for the property.

Business owners can also consider demolishing or refurbishing their empty property to avoid paying business rates. Properties that are undergoing major renovation or structural changes are exempt from business rates until the works are completed. Similarly, properties that are scheduled for demolition are also exempt from business rates. By investing in the redevelopment of their empty property, business owners can avoid paying business rates and potentially increase the value of their property in the future.

Furthermore, business owners can explore the option of leasing their empty property to a charity or community group. Properties that are being used for charitable purposes are eligible for an 80% discount on their business rates. By leasing their empty property to a charity or community group, business owners can reduce their business rates liability and support a good cause at the same time.

In some cases, business owners may be eligible for small business rates relief on their empty property. Small business rates relief is available for properties with a rateable value below a certain threshold, typically £15,000. Property owners can apply for small business rates relief from their local council, which can result in a significant reduction or exemption on their business rates.

Additionally, business owners can consider appealing their business rates assessment if they believe that it is incorrect. Property valuations for business rates are based on the rateable value of the property, which is determined by the Valuation Office Agency. If business owners feel that their rateable value is too high, they can submit an appeal to the Valuation Office Agency and provide evidence to support their case. If successful, the rateable value of the property may be reduced, resulting in lower business rates.

It is important for business owners to keep in mind that avoiding business rates on empty property requires careful planning and consideration of all available options. By taking proactive steps, such as claiming exemptions, applying for relief, investing in redevelopment, leasing to charities, and appealing assessments, business owners can minimize their business rates liability and make the most of their empty property.

In conclusion, there are several strategies that business owners can use to avoid paying business rates on empty property. By taking advantage of exemptions, relief schemes, redevelopment opportunities, charity leases, small business rates relief, and appeals, business owners can reduce their business rates liability and make their empty property work for them. It is important for business owners to explore all available options and seek professional advice if needed to ensure that they are not paying more than necessary in business rates on their empty property.