Business rates can be a significant expense for property owners, especially when a property is sitting empty However, there are ways to legally avoid paying business rates on empty property In this article, we will explore some strategies that property owners can use to minimize or eliminate this expense.
First and foremost, it is important to understand the regulations surrounding business rates on empty property In the UK, most commercial properties are subject to business rates, which are a tax on non-domestic properties This includes shops, offices, factories, warehouses, and other types of commercial premises Properties that are vacant and unused are still liable for business rates, although there are some exemptions and discounts available.
One way to avoid paying business rates on empty property is by applying for an exemption In England, properties that are empty and unused for a certain period of time may be eligible for a 100% exemption from business rates This period of time varies depending on the type of property – for example, industrial properties are exempt for the first six months, while offices and shops are exempt for the first three months.
To apply for an exemption, property owners must notify the local council that the property is vacant and provide evidence to support their claim This may include proof of vacancy, such as photographs or a signed declaration from the property owner Once the exemption is approved, property owners will not be required to pay business rates on the empty property for the specified period of time.
Another way to avoid paying business rates on empty property is by taking advantage of the “empty property relief” scheme This scheme provides a discount on business rates for properties that have been empty for a certain period of time avoiding business rates on empty property. In England, properties that have been empty for more than three months are eligible for a 100% discount on business rates for the next three months.
After the initial three-month period, the discount decreases to 10% for most properties (15% for industrial properties), but property owners may still be able to save a significant amount of money To qualify for empty property relief, property owners must apply to the local council and provide evidence of the property’s vacancy It is important to note that empty property relief is not automatic and must be applied for each year.
Property owners can also consider letting out their empty property on a short-term basis to avoid paying business rates Properties that are occupied for a short period of time (less than six weeks) are exempt from business rates This can be a great option for property owners who are looking to generate some income from their empty property while avoiding or reducing their business rates liability.
Alternatively, property owners can consider “property guardian” schemes, where individuals or companies are placed in empty properties to provide security and deter vandalism While property guardians may not generate rental income like traditional tenants, they can help property owners qualify for a 100% exemption from business rates under certain circumstances.
Lastly, property owners can consider appealing their business rates assessment if they believe it is incorrect or unfair The Valuation Office Agency (VOA) is responsible for setting the rateable value of commercial properties, which is used to calculate business rates If property owners feel that their rateable value is too high, they can submit an appeal to the VOA and provide evidence to support their case.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property By applying for exemptions, taking advantage of empty property relief, letting out the property on a short-term basis, using property guardian schemes, or appealing their assessments, property owners can reduce or eliminate this expense It is important to be aware of the regulations surrounding business rates and to seek professional advice if needed to ensure compliance with the law.