Business rates can be a significant financial burden for property owners, especially when a property sits empty. However, there are ways to legally minimize or even avoid paying business rates on empty properties. In this article, we will explore some strategies that property owners can use to reduce this expense and potentially save thousands of dollars.
One of the most common ways to avoid paying business rates on an empty property is by utilizing the exemptions and reliefs provided by the government. In the United Kingdom, for example, properties that have been empty for three months or less are exempt from paying business rates. This grace period allows property owners some time to find new tenants or buyers without incurring additional costs.
For properties that have been empty for longer periods of time, there are still options available to reduce or eliminate the business rates liability. One strategy is to apply for the “empty property relief,” which can provide a 50% discount on business rates for certain types of properties that have been vacant for a specified period. This relief can be a significant cost-saving measure for property owners struggling to find tenants or buyers.
Another option to avoid paying business rates on empty property is through the use of “charitable relief.” Property owners can apply for this relief if they allow a registered charity to use their vacant property for charitable purposes. By doing so, property owners can qualify for an 80% discount on their business rates, potentially saving them a substantial amount of money.
In some cases, property owners may also be eligible for “hardship relief” if they can demonstrate that paying business rates on an empty property would cause them undue financial hardship. While this relief is more difficult to obtain and is subject to strict criteria, it can provide significant savings for property owners facing financial difficulties.
Another effective strategy for avoiding business rates on empty property is by actively marketing the property for sale or rent. By demonstrating that efforts are being made to find new tenants or buyers, property owners may be able to qualify for a 100% discount on business rates for a limited period. This incentive encourages property owners to be proactive in their efforts to fill vacant properties and can result in significant cost savings.
It is important for property owners to be aware of the various exemptions, reliefs, and discounts available to them when it comes to business rates on empty property. By taking advantage of these opportunities, property owners can minimize their financial burden and potentially save thousands of dollars in business rates each year.
In conclusion, avoiding business rates on empty property is possible through the use of exemptions, reliefs, and discounts provided by the government. By understanding and utilizing these strategies, property owners can significantly reduce their business rates liability and save money in the long run. Whether through empty property relief, charitable relief, or hardship relief, there are options available to help property owners navigate the challenges of owning vacant properties. By being proactive and exploring all available avenues, property owners can protect their finances and minimize their expenses when it comes to business rates on empty property.