Business rates can be a significant expense for property owners, especially when a property is sitting empty. Empty properties are still subject to business rates, which can add up to thousands of pounds each year. However, there are strategies that property owners can use to legally avoid paying business rates on empty property. In this article, we will explore some of these strategies and explain how property owners can benefit from them.
One common strategy for avoiding business rates on empty property is to claim an exemption. In the UK, there are several exemptions that property owners can qualify for that will reduce or eliminate their business rates liability. For example, properties that are undergoing major structural repairs or are considered unfit for occupation may qualify for an exemption. Property owners can also claim a three-month exemption from business rates when a property becomes empty or unoccupied.
To qualify for these exemptions, property owners will need to provide evidence to their local council to support their claim. This may include photographs of the property, details of any ongoing works or repairs, or a report from a surveyor or architect confirming that the property is unfit for occupation. Property owners should be prepared to provide this evidence when making their claim to ensure that it is processed quickly and accurately.
Another strategy for avoiding business rates on empty property is to negotiate a temporary rate relief with the local council. Some local authorities offer discretionary rate relief for empty properties, which can reduce the amount of business rates that property owners are required to pay. Property owners can apply for this relief by contacting their local council and providing details of their property and why they believe they should qualify for the relief.
Property owners should be prepared to negotiate with their local council to secure the best rate relief possible. This may involve providing additional information or evidence to support their claim, or appealing a decision if their claim is initially rejected. Property owners should also be aware that rate relief is usually granted on a temporary basis, so they may need to reapply each year to continue receiving the relief.
One more strategy for avoiding business rates on empty property is to consider leasing the property to a charity or community group. In the UK, properties occupied by charities or registered community amateur sports clubs are entitled to an 80% discount on their business rates. Property owners can take advantage of this discount by leasing their empty property to a charity or community group, thereby reducing their business rates liability.
Property owners should be aware that leasing their property to a charity or community group may have implications for their tax status and could affect their eligibility for other exemptions or reliefs. It is important for property owners to seek advice from a tax professional or solicitor before entering into any lease agreement to ensure that they understand the implications and are compliant with all regulations.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By claiming exemptions, negotiating rate relief, or leasing the property to a charity, property owners can reduce or eliminate their business rates liability and save money. It is important for property owners to understand their rights and obligations under the law and to seek advice if they are unsure how to proceed. By taking advantage of these strategies, property owners can make the most of their empty property and avoid unnecessary expenses.
In the end, with the right approach and careful consideration, property owners can successfully navigate the complexities of business rates on empty property and come out ahead. By exploring the different strategies discussed in this article, property owners can take control of their financial responsibilities and maximize the potential of their property investments.