Business rates on empty property can be a significant financial burden for property owners In the UK, commercial properties are subject to business rates, which are taxes that businesses pay on the non-domestic properties they occupy However, there are strategies that property owners can use to legally avoid paying business rates on their empty properties.
One common strategy that property owners use to avoid paying business rates on empty property is to claim the small business rate relief This relief is available to businesses that only occupy one property and have a rateable value of less than £15,000 Property owners can claim this relief if they meet the criteria and can provide evidence that their property is empty By claiming this relief, property owners can significantly reduce the amount of business rates they have to pay on their empty property.
Another strategy that property owners can use to avoid paying business rates on empty property is to show that the property is uninhabitable This can be done by providing evidence that the property is in a state of disrepair or is not safe to occupy Property owners can seek the advice of a surveyor or a building inspector to assess the condition of the property and provide a report that shows that the property is uninhabitable By proving that the property is uninhabitable, property owners can apply for an exemption from paying business rates on the property.
Property owners can also consider temporarily occupying the property to avoid paying business rates on empty property By occupying the property even for a short period of time, property owners can qualify for an exemption from paying business rates avoiding business rates on empty property. This strategy can be particularly beneficial for property owners who are considering renovating or refurbishing the property in the near future By occupying the property temporarily, property owners can avoid paying business rates on the property until they are ready to use it for their business.
Property owners can also consider leasing the empty property to a charity or a community group to avoid paying business rates Charities and community groups are eligible for 80% relief on business rates, which means that property owners can significantly reduce the amount of business rates they have to pay on their empty property by leasing it to a qualifying charity or community group This strategy can be a win-win situation for both parties, as the charity or community group gets access to a property at a reduced cost, and the property owner avoids paying business rates on the empty property.
Property owners can also consider applying for an exemption from paying business rates on their empty property if it is undergoing structural repairs or alterations Property owners can provide evidence that the property is undergoing substantial works that will improve the property and make it suitable for occupation By proving that the property is in the process of being renovated or refurbished, property owners can apply for an exemption from paying business rates on the property until the works are completed.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property By claiming small business rate relief, showing that the property is uninhabitable, temporarily occupying the property, leasing it to a charity or community group, or applying for an exemption due to structural repairs or alterations, property owners can legally reduce or eliminate the amount of business rates they have to pay on their empty property It is important for property owners to carefully consider their options and seek professional advice to determine the best strategy for avoiding business rates on their empty property.