Business rates can be a significant financial burden for property owners, especially when their buildings are sitting empty However, there are ways in which owners can legally reduce or avoid paying business rates on empty property In this article, we will explore some strategies that property owners can utilize to minimize their business rates liability.
One of the most common ways to avoid paying business rates on an empty property is by claiming an exemption In the UK, empty property rates apply only after a certain period of time Currently, the standard exemption period is three months for commercial properties, after which owners are required to pay the full rate However, there are several exemptions available that can help property owners avoid or reduce these charges.
The most common exemption is known as the “listed building exemption.” If the property is listed as a building of historical or architectural importance, owners can apply for a full exemption from business rates while the property remains empty This exemption can be a significant financial relief for owners of listed properties, as they can avoid paying business rates altogether.
Another exemption that property owners can take advantage of is the “small business rate relief.” If the property is used for a small business, owners may be eligible for a discount on their business rates This can be particularly beneficial for owners of small, independent businesses who are struggling to make ends meet.
Additionally, owners of newly built properties can also claim an exemption from business rates for the first three months after completion This can be a helpful incentive for property developers looking to attract tenants or buyers to their newly constructed buildings.
In some cases, property owners may be able to reduce their business rates liability by taking advantage of the government’s “discretionary relief” scheme avoiding business rates on empty property. This scheme allows local authorities to grant discretionary relief to owners of empty properties who can demonstrate that they are actively seeking tenants or working to bring the property back into use.
Furthermore, property owners can explore the option of temporary reoccupation to avoid paying business rates on an empty property By temporarily reoccupying the building for a short period of time, owners can reset the exemption period and avoid being charged business rates for an extended period.
Owners can also consider exploring alternative uses for their empty properties to avoid or reduce business rates liability For example, converting the property into a temporary pop-up shop, art gallery, or event space can help bring in some income while also attracting potential tenants or buyers This not only helps mitigate the financial burden of business rates but also adds value to the property.
Another strategy that property owners can employ is to negotiate with the local authorities to reach a reasonable payment plan for their business rates In some cases, councils may be willing to offer discounts or payment extensions to help property owners manage their financial obligations.
It is important for property owners to stay informed about changes in business rates legislation and exemptions to ensure that they are taking full advantage of all available options Seeking professional advice from a qualified chartered surveyor or tax advisor can also be helpful in identifying the best strategies to minimize business rates liability on empty properties.
In conclusion, paying business rates on empty property can be a significant financial burden for property owners However, by exploring exemptions, temporary reoccupation, alternative uses, and negotiation strategies, owners can effectively reduce or avoid paying business rates altogether Staying informed and seeking professional advice are key steps in navigating the complex world of business rates and ensuring financial sustainability for property owners.
By utilizing these strategies, property owners can successfully navigate the challenges of business rates on empty property and protect their assets from unnecessary financial strain.