Business rates can be a significant financial burden for property owners, especially when their properties are sitting vacant In the UK, owners of empty commercial properties are required to pay business rates on those properties, which can add up to thousands of pounds each year However, there are strategies that property owners can use to mitigate or even avoid paying business rates on their empty properties In this article, we will explore some of these strategies and provide guidance on how property owners can navigate the complexities of business rates regulations.
One common way that property owners can avoid paying business rates on empty properties is by taking advantage of exemptions and reliefs offered by the government For example, if a property is undergoing substantial repair or structural alterations, owners may be eligible for a temporary exemption from business rates This exemption lasts for a maximum of 12 months, with an additional 6 months available in some circumstances Owners must notify the local council of the works being carried out and provide evidence to support their claim for the exemption.
Another option for property owners is to apply for a hardship relief, which can reduce the amount of business rates payable on an empty property Hardship relief is typically granted in cases where the property has been vacant for an extended period and the owner is experiencing financial difficulties To apply for hardship relief, owners must demonstrate that they are experiencing financial hardship and provide evidence to support their claim Each case is considered on its own merits, and relief is granted at the discretion of the local council.
Property owners can also reduce their liability for business rates on empty properties by actively marketing the property for rent or sale If a property is actively being marketed, owners may be eligible for a 3-month exemption from business rates This exemption can be extended for an additional 3 months if the property remains on the market but is not attracting interest from potential tenants or buyers avoiding business rates on empty property. Owners must provide evidence of their marketing efforts, such as details of the marketing strategy and copies of property listings, to qualify for this exemption.
In some cases, property owners may be able to claim small business rate relief on their empty properties Small business rate relief is available to businesses with a rateable value of less than £15,000, and the relief can significantly reduce the amount of business rates payable Owners should check with their local council to determine if they are eligible for small business rate relief on their empty properties.
It is important for property owners to be aware of the regulations surrounding business rates on empty properties and to take steps to comply with these regulations Ignoring or neglecting to pay business rates on an empty property can result in significant financial penalties and legal action Property owners should stay informed about changes to business rates regulations and seek professional advice if they are unsure about their obligations.
Property owners should also consider the potential benefits of using their empty properties for alternative purposes, such as short-term rentals or pop-up shops By generating income from their empty properties, owners can offset the cost of business rates and potentially even turn a profit This approach requires creativity and flexibility, but it can be a viable solution for owners looking to minimize the financial impact of business rates on their empty properties.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty properties By taking advantage of exemptions, reliefs, and other opportunities, owners can reduce their liability for business rates and protect their bottom line It is important for property owners to stay informed about business rates regulations and to seek professional advice if they are unsure about how to proceed With careful planning and proactive management, property owners can navigate the complexities of business rates and minimize the financial burden on their empty properties.