Business rates are a tax imposed by local authorities on commercial properties in the UK. However, there are ways for property owners to avoid paying business rates on empty properties. In this article, we will explore some of the strategies that can be used to minimize or eliminate this cost.
One of the most common ways to avoid paying business rates on empty property is through property development. By making improvements or renovations to the property, owners can reset the rateable value and potentially qualify for relief on the empty property. This strategy requires an initial investment but can result in long-term savings on business rates.
Another option for avoiding business rates on empty property is through actively marketing the property for rent or sale. By demonstrating that efforts are being made to find a tenant or buyer, property owners may be able to qualify for a temporary exemption from business rates. This exemption typically lasts for three months, but it can be extended in certain circumstances.
Property owners can also consider using their empty property for charitable purposes to qualify for relief on business rates. By allowing a registered charity to use the property rent-free, owners can apply for charitable rate relief and potentially reduce their business rates bill. This strategy benefits both the property owner and the charity, as it provides a valuable space for the organization to operate.
In some cases, property owners may be eligible for small business rate relief on empty properties. This relief is available for properties with a rateable value below a certain threshold, and it can provide significant savings on business rates. Owners should check with their local council to see if they qualify for this relief and apply accordingly.
Owners of listed buildings or properties with special historical or architectural significance may be able to apply for a reduced rate or exemption on business rates. Historic buildings are often subject to higher maintenance costs, so this relief can provide valuable financial support for property owners. To qualify for this relief, owners must demonstrate that the property is of special historical or architectural interest.
Property owners should also be aware of the government’s temporary COVID-19 relief measures for empty properties. In response to the economic impact of the pandemic, the government has introduced a 100% relief on business rates for retail, hospitality, and leisure properties for the 2021-2022 tax year. This relief includes empty properties in these sectors, providing much-needed financial support for struggling businesses.
Overall, there are several strategies that property owners can use to avoid paying business rates on empty properties. By considering options such as property development, active marketing, charitable use, small business rate relief, historic building relief, and temporary COVID-19 measures, owners can minimize or eliminate this cost. It is important for property owners to familiarize themselves with the available relief options and apply for them accordingly to maximize their savings.
In conclusion, avoiding business rates on empty property is possible with careful planning and strategic decision-making. Property owners should explore the various relief options available to them and take advantage of any opportunities to reduce their business rates bill. By taking proactive steps and utilizing the resources at their disposal, property owners can minimize the financial burden of empty property and optimize their overall business operations.