Business rates can be a significant financial burden for property owners, especially when their buildings are sitting empty and not generating any income. However, there are legal ways to avoid paying business rates on empty property. In this article, we will explore some strategies that property owners can use to reduce or eliminate their business rates liability.
One common strategy for avoiding business rates on empty property is to claim an exemption. In some cases, properties are exempt from business rates for a certain period of time if they are unoccupied. For example, properties that are undergoing major renovation or repair work may be exempt from business rates for up to three months. Similarly, properties that are listed buildings or are deemed to be of historical or architectural importance may also be exempt from business rates.
Property owners can also apply for a temporary exemption if they are unable to find a tenant for their property. This can be a useful option for owners who are actively trying to rent out their property but are struggling to find a suitable tenant. By applying for a temporary exemption, property owners can avoid paying business rates on their empty property for a set period of time, giving them some breathing room to find a tenant.
Another option for avoiding business rates on empty property is to apply for a hardship relief. This scheme is designed to provide financial assistance to property owners who are suffering financial hardship due to their business rates liability. Property owners can apply for hardship relief if they can demonstrate that paying their business rates would cause them undue financial hardship. If successful, property owners may be granted a discount on their business rates or be exempt from paying them altogether.
Property owners can also consider using their empty property for charitable purposes in order to avoid paying business rates. Properties that are being used for charitable purposes are usually exempt from business rates. This can be a win-win situation for property owners, as they can avoid paying business rates on their empty property while also supporting a worthy cause.
Alternatively, property owners can consider leasing their empty property to a charity or community group. By doing so, the property may qualify for charitable relief, which can significantly reduce or eliminate the business rates liability. This can be a mutually beneficial arrangement, as the charity or community group gets access to a property at a reduced cost, while the property owner avoids paying business rates on their empty property.
Property owners should also be aware of the government’s Empty Property Relief scheme. Under this scheme, properties that have been empty for a certain period of time may be eligible for a discount on their business rates. The amount of the discount varies depending on the length of time that the property has been empty, with discounts of up to 100% available for properties that have been empty for more than six months.
It is important for property owners to be aware of the rules and regulations surrounding business rates on empty property, as failing to pay can result in hefty fines and legal action. By taking advantage of the various exemptions and relief schemes available, property owners can reduce or eliminate their business rates liability while their property remains empty. It is recommended that property owners seek professional advice to ensure that they are taking advantage of all available options and are in compliance with the law.
In conclusion, there are several legal ways for property owners to avoid paying business rates on empty property. By claiming exemptions, applying for relief, using the property for charitable purposes, or leasing it to a charity or community group, property owners can reduce or eliminate their business rates liability. It is important for property owners to be proactive in seeking out these opportunities in order to save money and avoid unnecessary financial strain.