When it comes to owning a property that is currently vacant, one major concern for business owners is the burden of paying business rates on an empty property. These rates can quickly add up and become a significant financial strain on the business. However, there are ways to legally avoid paying business rates on empty property. In this article, we will discuss some strategies that business owners can use to minimize or eliminate these costs.
One common method that businesses use to avoid paying business rates on empty property is to apply for an exemption or relief. In some cases, properties that are empty for a certain period of time may be eligible for a temporary exemption from business rates. This exemption typically lasts for a set period, such as three months, and allows the business owner to avoid paying rates during this time. It is important to check with your local council to see if your property qualifies for this type of relief.
Another option for avoiding business rates on empty property is to actively market the property for rent or sale. Many local councils offer a scheme called “empty property rate relief” which allows business owners to avoid paying rates on a property that is actively being marketed for rent or sale. By showing that you are making a genuine effort to find a tenant or buyer for the property, you may be able to qualify for this relief. Keep records of your marketing efforts, such as advertising listings and correspondence with potential tenants or buyers, to support your application for relief.
Business owners can also consider exploring the option of demolishing the empty property to avoid paying business rates. Properties that are undergoing demolition are typically exempt from business rates during this process. While this may seem like a drastic measure, it can be a viable option for business owners who are unable to find a tenant or buyer for the property and are facing high business rates. Before proceeding with demolition, be sure to check with your local council and obtain any necessary permits or approvals.
Another strategy for avoiding business rates on empty property is to explore the possibility of converting the property for a different use. Properties that are undergoing renovation or change of use may be eligible for relief from business rates. By demonstrating that you are actively working to bring the property back into use, you may be able to reduce or eliminate the rates that you owe. Consider seeking professional advice from a surveyor or property consultant to explore the feasibility of converting your empty property for a different use.
Business owners should also be aware of the rules regarding small business rate relief. In some cases, businesses that occupy multiple properties may be able to claim relief on one of their empty properties. This relief can help to reduce the financial burden of paying business rates on empty property. Check with your local council to see if your business qualifies for this type of relief and how you can apply for it.
Lastly, business owners should stay informed about changes to business rates legislation. The rules regarding business rates on empty property can vary depending on the location and circumstances of the property. By staying up to date on any changes to the law, business owners can take advantage of any new exemptions or reliefs that may become available. Consider joining a local business association or seeking advice from a professional advisor to stay informed about the latest developments in business rates legislation.
In conclusion, paying business rates on empty property can be a major financial burden for business owners. However, there are strategies that can be used to minimize or avoid these costs. By exploring options such as exemptions, relief schemes, demolition, conversion, and small business rate relief, business owners can take steps to reduce the impact of business rates on their bottom line. Stay informed about changes to business rates legislation and seek professional advice when needed to navigate the complex rules surrounding business rates on empty property.