The cost of running a business can quickly add up, and one expense that can catch business owners off guard is business rates on empty properties. When a business premises becomes empty, owners are still required to pay business rates, which can be a significant financial burden. However, there are a few ways to avoid paying business rates on empty property.
One way to avoid paying business rates on an empty property is by applying for an exemption or relief. There are certain circumstances in which a property may be exempt from business rates, such as when the property is undergoing renovation or structural repairs. In these cases, owners can apply for an exemption and temporarily avoid paying business rates until the property is back in use.
Another option for avoiding business rates on empty property is to apply for small business rate relief. This relief is available to businesses with a rateable value below a certain threshold, and can provide a discount on business rates. If the property is empty but still classified as a small business, owners may be able to qualify for this relief and reduce their business rates bill.
Owners of empty properties can also consider applying for charitable rate relief. If the property is being used for charitable purposes, owners may be eligible for a discount on business rates. This can be a great way to reduce the financial burden of paying business rates on an empty property, while also supporting a good cause.
In some cases, owners may be able to claim empty property relief. This relief is available for certain types of vacant properties, such as industrial properties or listed buildings. Owners can apply for this relief to avoid paying business rates on their empty property, which can provide some financial relief during times of vacancy.
Business owners should also be aware of the government’s proposals to change the system of business rates on empty properties. As of now, properties that have been empty for more than three months are subject to business rates. However, the government has proposed to change this threshold to 12 months, which would give owners more time to find tenants or buyers for their empty properties before being hit with business rates.
There are also creative ways to avoid paying business rates on empty property. For example, owners can consider leasing out the property on a short-term basis to avoid being classified as empty. This can help generate some income from the property while also avoiding the full burden of business rates.
Another option is to consider demolishing the property. While this may seem drastic, it can actually be a cost-effective way to avoid paying business rates on an empty property. Once the property is demolished, owners can apply for relief from business rates as the property will no longer exist.
Owners of empty properties should also be proactive in exploring all available options for avoiding business rates. This may include seeking advice from a business rates specialist, who can help navigate the complex rules and regulations surrounding empty property relief.
In conclusion, there are several ways to avoid paying business rates on empty property. By exploring exemptions, relief options, and creative strategies, owners can reduce the financial burden of empty property rates and protect their bottom line. With careful planning and proactive management, business owners can successfully navigate the complexities of business rates on empty properties.