Business rates can be a significant financial burden for property owners, especially when the property is sitting empty In the UK, empty commercial properties are subject to business rates, which can quickly add up to a substantial annual expense However, there are some strategies that property owners can use to minimize or even avoid paying business rates on empty properties In this article, we will explore some of the ways that property owners can legally reduce their business rates liability and save money.
One of the most common ways to avoid paying business rates on empty property is through the use of exemptions and reliefs The government offers a number of exemptions and reliefs for empty properties, which can significantly reduce or eliminate the amount of business rates that property owners are required to pay For example, properties that are undergoing major structural repairs or are being redeveloped may be eligible for exemptions from business rates.
In addition to exemptions for properties undergoing major works, there are also reliefs available for certain types of properties For example, listed buildings and properties in areas of economic hardship may qualify for relief from business rates Property owners should carefully review the eligibility criteria for these exemptions and reliefs to see if their property qualifies.
Another option for property owners looking to avoid business rates on empty property is to consider temporary uses for the space By leasing the property out on a short-term basis, property owners may be able to avoid paying business rates altogether For example, property owners could consider leasing the property out as a pop-up shop, temporary office space, or event venue By generating income from the property, property owners may be able to avoid business rates while still making productive use of the space.
Property owners can also consider demolishing the property to avoid paying business rates on an empty building avoiding business rates on empty property. Once a building has been demolished, it is no longer subject to business rates However, property owners should be aware that there are strict regulations governing the demolition of buildings, and they may need to secure planning permission before proceeding with demolition.
Alternatively, property owners could consider converting the property for residential use Residential properties are not subject to business rates, so converting the property to residential use could be a way to avoid paying business rates on an empty property Property owners should be aware that converting a property for residential use may require planning permission and building regulations approval, so it is important to seek professional advice before proceeding with a conversion project.
Property owners should also be aware of the government’s Empty Property Rates Relief scheme Under this scheme, property owners may be entitled to a 100% discount on business rates for a limited period of time The length of the relief period and the eligibility criteria vary depending on the circumstances of the property Property owners should check with their local council to see if they qualify for Empty Property Rates Relief.
In conclusion, there are a number of ways that property owners can legally avoid paying business rates on empty property By taking advantage of exemptions, reliefs, temporary uses, demolitions, conversions, and Empty Property Rates Relief, property owners can minimize their business rates liability and save money It is important for property owners to carefully review the eligibility criteria for these options and to seek professional advice when necessary By exploring these strategies, property owners can make smart financial decisions and reduce the financial burden of owning an empty property.