Business rates can be a significant expense for property owners, especially when the property is empty. Empty properties are subject to business rates just like occupied properties, which can result in hefty bills accumulating over time. However, there are ways to avoid paying business rates on empty property. In this article, we will explore some strategies for minimizing or eliminating business rates on vacant properties.
One of the most common ways to avoid paying business rates on empty property is through claiming an exemption. Properties that are undergoing major structural repairs or are deemed unfit for occupation may be eligible for exemption from business rates. In order to qualify for this exemption, property owners must provide evidence that the property is undergoing repair work or is not safe for occupation. This exemption can provide a significant cost savings for property owners while they work on bringing the property back into use.
Another strategy for avoiding business rates on empty property is to lease the property out on a short-term basis. By leasing the property to a temporary tenant, property owners can potentially qualify for a business rates relief known as “empty property relief.” This relief can provide a 100% exemption from business rates for properties that are empty but are being actively marketed for lease. Property owners can benefit from this relief for up to three months for industrial properties and six months for all other types of properties.
Property owners can also explore the option of converting the property for a different use to avoid paying business rates on an empty property. By changing the use of the property or dividing it into smaller units, property owners may be able to qualify for a lower business rates assessment. For example, converting a warehouse into smaller storage units or office spaces can potentially result in a lower rateable value, leading to reduced business rates.
Additionally, property owners can consider applying for business rates relief under the “hardship relief” category. This relief is typically granted in cases where paying business rates on an empty property would cause financial hardship for the property owner. Property owners must provide evidence of their financial situation and demonstrate that paying the business rates would be unreasonable. While hardship relief is not commonly granted, it can be a viable option for property owners facing financial difficulty.
Furthermore, property owners can explore the option of demolishing the empty property to avoid paying business rates altogether. Once a property has been demolished, it is no longer subject to business rates. Property owners must obtain the necessary permits and permissions before demolishing the property and should be aware of any restrictions or regulations in place. While demolishing a property is a more drastic measure, it can provide a long-term solution to avoiding business rates on empty property.
In conclusion, there are various strategies that property owners can explore to avoid paying business rates on empty property. By claiming exemptions, leasing the property on a short-term basis, converting the property for a different use, applying for hardship relief, or demolishing the property, property owners can minimize or eliminate the financial burden of business rates on vacant properties. It is important for property owners to carefully consider their options and seek advice from a professional advisor to determine the best course of action for their specific situation. By taking proactive steps to address business rates on empty property, property owners can protect their financial interests and maximize the value of their assets.