Business rates can be a significant financial burden for property owners, especially when the property sits empty. However, there are ways to avoid paying these rates on empty property. In this article, we will explore some strategies that property owners can use to save money and avoid business rates on empty property.
One of the most common ways to avoid business rates on empty property is by claiming an exemption. In the UK, properties that have been empty for three months or less are exempt from business rates. This means that property owners can temporarily avoid paying rates on their empty properties by simply leaving them vacant for three months or less. However, it is important to note that this exemption only applies once in any twelve-month period, so property owners cannot continually claim it.
Another way to avoid business rates on empty property is by demonstrating that the property is not capable of generating rental income. If a property is in poor condition or is otherwise unmarketable, property owners can apply for an exemption from business rates. This exemption is known as an “unoccupied property rate exemption” and can be granted by the local council. Property owners may be required to provide evidence of the property’s condition, such as photos or reports from structural engineers, to support their claim for exemption.
Property owners can also avoid business rates on empty property by actively marketing the property for sale or rent. If a property is listed for sale or rent with a registered agent, property owners may be eligible for a temporary exemption from business rates. This exemption, known as a “void property relief,” can be granted for up to six months while the property is actively being marketed. Property owners must provide evidence of their marketing efforts, such as listing details or correspondence with agents, to qualify for this exemption.
Additionally, property owners may be able to avoid business rates on empty property by applying for a hardship relief. If paying business rates on empty property would cause financial hardship for the owner, they can apply for relief from the local council. Hardship relief is granted on a case-by-case basis and is intended to provide temporary financial relief to property owners who are struggling to make ends meet. Property owners may be required to provide evidence of their financial situation, such as bank statements or tax returns, to support their application for hardship relief.
Another strategy for avoiding business rates on empty property is by exploring other uses for the property. Property owners can apply for a change of use to convert the property into a non-rateable form, such as a charity shop or community center. By repurposing the property in this way, property owners can avoid paying business rates on the empty property. However, it is important to note that changing the use of a property may require planning permission and other regulatory approvals, so property owners should consult with their local council before proceeding.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By claiming exemptions, demonstrating unmarketability, actively marketing the property, applying for hardship relief, or exploring alternative uses, property owners can save money and reduce their financial burden. It is important for property owners to carefully consider their options and consult with their local council before taking any action to avoid business rates on empty property. By being proactive and strategic, property owners can successfully navigate the complexities of business rates and save money in the process.