When it comes to owning and managing commercial property, one common headache that many business owners face is dealing with business rates on empty properties Business rates are taxes that are levied on most non-domestic properties, including commercial and retail properties These rates can be a significant financial burden, especially for property owners who are struggling to find tenants or who are in the process of renovating a property
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 reduce or eliminate their business rates liability while their property is unoccupied.
One of the most straightforward ways to avoid paying business rates on empty property is by applying for exemptions or reliefs In the UK, there are several types of relief schemes available for property owners who have empty properties For example, small business rate relief may apply to properties with a rateable value below a certain threshold, while some properties may be eligible for charitable relief or rural rate relief.
Property owners should carefully review the criteria for each relief scheme and apply for any that they may be eligible for By taking advantage of these relief schemes, property owners can significantly reduce their business rates liability and avoid paying taxes on empty properties.
Another strategy that property owners can use to avoid business rates on empty property is by actively marketing the property for rent or sale In the UK, properties that are actively being marketed for rent or sale may be eligible for a temporary exemption from business rates This exemption, known as the empty property rates relief, can last for up to three months for commercial properties and six months for industrial properties.
To qualify for this relief, property owners must demonstrate that they are actively marketing the property through advertising and promotional activities avoiding business rates on empty property. By taking proactive steps to find tenants or buyers for their empty properties, property owners can both attract potential occupants and reduce their business rates liability.
Property owners can also consider temporarily occupying their empty properties to avoid paying business rates In the UK, properties that are used for a temporary purpose, such as hosting events or exhibitions, may be eligible for a temporary exemption from business rates This exemption can last for up to six months and can provide property owners with some breathing room while they search for a long-term tenant.
Property owners should be aware that there are certain conditions that must be met to qualify for this exemption, such as obtaining the necessary permits and licenses for the temporary use of the property By utilizing this strategy, property owners can not only avoid paying business rates on their empty properties but also generate some additional income through temporary rentals.
For property owners who are undertaking renovation or redevelopment projects on their empty properties, there are also ways to reduce their business rates liability In the UK, properties that are undergoing structural repairs or alterations may be eligible for a renovation relief This relief can provide property owners with a 100% exemption from business rates for up to 12 months while the property is being renovated.
To qualify for this relief, property owners must demonstrate that the property is undergoing substantial works that will improve its value or functionality By taking advantage of this relief, property owners can reduce their business rates liability and offset some of the costs associated with renovation projects on their empty properties.
In conclusion, business rates on empty property can be a significant financial burden for property owners, but there are ways to legally avoid paying these taxes By applying for exemptions, actively marketing the property, temporarily occupying the property, or taking advantage of renovation relief, property owners can reduce or eliminate their business rates liability while their properties are unoccupied By utilizing these strategies, property owners can not only save money but also attract potential tenants or buyers for their empty properties.