When it comes to owning commercial property, one of the biggest headaches for landlords and property owners is the issue of business rates on empty buildings Business rates are a tax that is imposed on most non-domestic properties, including shops, offices, warehouses, and factories However, there are ways to legally avoid paying business rates on empty property, saving you a significant amount of money in the process.
There are several exemptions and reliefs available to property owners that can help reduce or even eliminate their business rates liability on empty buildings Here are some strategies to consider if you want to avoid paying business rates on empty property:
1 Small business rate relief: If your property has a rateable value below a certain threshold, you may be eligible for small business rate relief This relief can significantly reduce the amount of business rates you have to pay, or even exempt you from paying them altogether Check with your local council to see if your property qualifies for this relief.
2 Charitable relief: If your property is used for charitable purposes, you may be eligible for charitable relief on your business rates This can reduce your rates bill by 80% or even exempt you from paying business rates completely To qualify for this relief, your property must be used for charitable purposes and be wholly or mainly used for that purpose.
3 Empty property relief: Empty property relief is available for properties that have been unoccupied for a certain period of time In most cases, you will not have to pay any business rates on a property that has been empty for three months or less After that period, the full rates will be payable unless the property qualifies for another exemption or relief.
4 Exempt properties: Some types of properties are exempt from paying business rates altogether, regardless of whether they are occupied or not These include agricultural land and buildings, fish farms, places of public religious worship, and buildings used for the training or welfare of disabled people If your property falls into one of these categories, you do not have to worry about business rates.
5 avoiding business rates on empty property. Renovation works: If your property is undergoing renovation or structural repairs, you may be able to claim relief on your business rates This applies to properties that are unoccupied and being worked on with the intention of bringing them back into use You will need to provide evidence of the renovation works, such as building permits or invoices from contractors.
6 Temporary occupation: If your property is temporarily occupied, you may be able to claim relief on your business rates for the period it is in use This could include short-term leases, pop-up shops, or temporary events held on the premises Make sure to inform your local council about the temporary occupation to avoid paying unnecessary business rates.
7 Appeal the rateable value: If you believe that the rateable value of your property is incorrect, you have the right to appeal to the Valuation Office Agency (VOA) A lower rateable value will result in lower business rates payable on your property Be prepared to provide evidence to support your appeal, such as rental values of similar properties in the area.
8 Vacant property relief: If your property is unoccupied and unlikely to be rented out in the near future, you may be able to claim vacant property relief on your business rates This relief can reduce your rates bill by 100% for a certain period, typically up to three or six months, depending on the local council’s policy.
In conclusion, there are several ways to legally avoid paying business rates on empty property By taking advantage of the exemptions and reliefs available, property owners can significantly reduce their rates liability and save money in the process Make sure to research the options that are applicable to your specific situation and consult with your local council for guidance on how to proceed With careful planning and proactive management of your property, you can minimize the financial burden of business rates on empty buildings.