Business rates can be a significant financial burden for property owners, especially when a property sits empty for an extended period However, there are ways to legally avoid paying business rates on empty property With a bit of strategy and planning, property owners can save money and potentially attract tenants more quickly In this article, we will discuss some effective ways to avoid business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is by applying for an exemption or relief There are several types of exemptions and reliefs available, depending on the circumstances of the property For example, properties that are newly built or under renovation may be eligible for a temporary exemption Additionally, properties that are too dangerous to occupy or are actively being marketed for sale or rent may also qualify for relief from business rates.
To apply for an exemption or relief, property owners must contact their local council and provide evidence to support their claim It is important to carefully review the criteria for each exemption or relief to ensure that the property meets the requirements Failure to provide accurate information could result in penalties or fines.
Another effective way to avoid paying business rates on empty property is by utilizing the Class A exemption This exemption applies to properties with a rateable value of less than £2,900, and owners do not need to apply for it However, once a property’s rateable value exceeds this threshold, owners must apply for other exemptions or reliefs to avoid paying business rates.
Property owners can also consider entering into a short-term lease agreement with a charity or community group to avoid paying business rates on empty property Under the Localism Act 2011, properties occupied by registered charities or community amateur sports clubs are eligible for an 80% discount on business rates avoiding business rates on empty property. By leasing the property to a qualifying organization, property owners can save money on business rates while supporting a good cause.
Furthermore, property owners can consider demolishing or converting the property to avoid paying business rates on empty property Buildings that are not capable of beneficial occupation due to their condition or location may qualify for exemption from business rates By demolishing or converting the property into a different use, owners can avoid paying business rates while potentially increasing the property’s value.
Additionally, property owners can explore the possibility of claiming hardship relief to avoid paying business rates on empty property Hardship relief is available to property owners who are experiencing financial difficulties and cannot afford to pay business rates To qualify for hardship relief, owners must demonstrate that paying business rates would cause them undue financial hardship Property owners must provide detailed financial information to support their claim for hardship relief.
Property owners can also consider subletting the property to avoid paying business rates on empty property By subletting the property to another business, owners can transfer the responsibility for paying business rates to the subtenant However, it is important to carefully review the terms of the lease agreement to ensure that the subtenant is responsible for paying business rates.
In conclusion, there are several effective ways to avoid paying business rates on empty property By applying for exemptions or reliefs, leasing the property to a charity or community group, demolishing or converting the property, claiming hardship relief, or subletting the property, property owners can save money and potentially attract tenants more quickly It is important to carefully review the criteria for each option and seek professional advice if necessary With a bit of planning and strategy, property owners can successfully avoid paying business rates on empty property.