When it comes to owning a commercial property, business rates can become a significant expense, especially when the property sits empty In the UK, business rates are taxes that businesses have to pay on the commercial property they occupy However, there are ways to avoid paying business rates on empty property legally In this article, we will explore five strategies that property owners can use to reduce or eliminate business rates on empty property.
1 Temporary use or occupation
One way to avoid paying business rates on empty property is to temporarily occupy the property or allow someone else to use it By doing so, the property is considered occupied, and therefore not subject to business rates This could be done by allowing a community group to use the property for events or partnering with a local charity to use it as a temporary office space Not only does this help reduce the financial burden of business rates, but it also benefits the local community.
2 Property renovation or development
Another effective way to avoid business rates on empty property is to invest in property renovation or development By making improvements to the property, such as refurbishing the interior or adding new features, you can apply for a temporary exemption from business rates This exemption can last for up to three months for properties undergoing renovation Furthermore, if you are planning to develop the property, you can apply for an exemption for unoccupied properties that are being held for future development.
3 Small business rate relief
If you own a small business property that has a rateable value below a certain threshold, you may be eligible for small business rate relief This scheme allows eligible businesses to receive a discount on their business rates, which can significantly reduce the amount owed avoiding business rates on empty property. In some cases, small businesses may be exempt from paying business rates altogether This is a great option for property owners who are struggling to cover the costs of business rates on empty property.
4 Listed building relief
If your property is a listed building, you may be able to apply for listed building relief on your business rates Listed buildings are considered to have special architectural or historical significance, and as such, may be eligible for relief from business rates This relief can range from partial to full exemption, depending on the specific circumstances of the property By taking advantage of listed building relief, property owners can significantly reduce their business rates liability on empty properties.
5 Vacant property relief
Lastly, property owners can apply for vacant property relief to reduce or eliminate business rates on empty property Vacant property relief allows property owners to claim a 100% exemption from business rates for properties that have been empty for a certain period of time The length of time required for eligibility varies depending on the local authority, but in most cases, properties must be empty for at least three months to qualify for relief By applying for vacant property relief, property owners can avoid paying business rates on properties that are temporarily unoccupied.
In conclusion, owning an empty commercial property can be a financial burden due to the costs associated with business rates However, by utilizing the strategies outlined above, property owners can reduce or eliminate their business rates liability on empty properties Whether through temporary use, property development, rate relief schemes, or vacant property relief, there are legal avenues available to help property owners avoid paying business rates on empty property By taking advantage of these strategies, property owners can alleviate the financial strain of owning empty commercial properties and focus on maximizing the potential of their investments.