Strategies For Avoiding Business Rates On Empty Property

Many business owners are faced with the challenge of dealing with empty properties, which can be a drain on resources due to business rates that must be paid even when the property is not generating any income However, there are legal ways to avoid paying business rates on empty property In this article, we will discuss some strategies that can help business owners save money and minimize the financial burden of owning empty properties.

First and foremost, it is important to understand the regulations surrounding business rates on empty property In the United Kingdom, business rates are charged on most non-domestic properties, including empty properties However, there are exemptions and reliefs available that can help business owners reduce or eliminate the amount they need to pay.

One common way to avoid business rates on empty property is by applying for an empty property relief This relief provides a 100% exemption from business rates for the first three months that a property is empty After the initial three-month period, the relief can be extended for a further three months if the property is a listed building, is located in a designated disaster area, or is owned by a charity For industrial properties, the relief can be extended for a further six months.

Another strategy is to actively market the property for sale or rent In the UK, business rates are not charged on empty properties that are actively being marketed for sale or rent By demonstrating that efforts are being made to find a tenant or buyer, business owners can avoid paying business rates on empty property This can be done by advertising the property through online listings, social media, and local newspapers.

Additionally, business owners can consider applying for a small business rate relief This relief is available to businesses with a rateable value of less than £15,000 avoiding business rates on empty property. Qualifying businesses can receive a discount on their business rates, which can help reduce the financial burden of owning an empty property.

It is also important to regularly review the rateable value of the property The rateable value is used to calculate the amount of business rates that must be paid If the rateable value of the property has decreased, business owners may be eligible for a reduction in their business rates This can be done by submitting a proposal to the local valuation office to reassess the rateable value of the property.

Furthermore, business owners can explore the option of temporary occupation By allowing a temporary tenant to occupy the property, business owners can benefit from the empty property relief, which provides a 100% exemption from business rates This temporary occupation can be a short-term solution to avoid paying business rates on empty property while efforts are being made to find a long-term tenant or buyer.

In some cases, business owners may be able to apply for a hardship relief This relief is available to businesses experiencing financial hardship and allows for a reduction in the amount of business rates that must be paid To qualify for hardship relief, business owners must demonstrate that paying the full amount of business rates would cause undue financial hardship.

In conclusion, there are several strategies that business owners can use to avoid paying business rates on empty property By taking advantage of exemptions, reliefs, and discounts, business owners can reduce the financial burden of owning empty properties Additionally, actively marketing the property, reviewing the rateable value, exploring temporary occupation, and applying for hardship relief can all help business owners save money and minimize the impact of business rates on their finances By staying informed about the regulations and seeking professional advice when needed, business owners can effectively manage their empty properties and avoid unnecessary expenses.