Business rates can be a significant burden for property owners, especially when they have empty buildings that are not generating any income In the UK, empty properties are still subject to business rates, which can add up to a substantial amount over time However, there are ways to legally minimize or avoid paying business rates on empty property In this article, we will discuss five strategies that property owners can use to reduce or eliminate their business rates liability.
1 Utilize the Small Business Rate Relief Scheme
One way to reduce business rates on empty property is to take advantage of the Small Business Rate Relief Scheme This scheme is designed to help small businesses and property owners by providing relief on their business rates If your property is empty and has a rateable value of less than £15,000, you may be eligible for relief under this scheme.
The relief amount varies depending on the rateable value of the property For example, properties with a rateable value of less than £12,000 are eligible for 100% relief, while properties with a rateable value between £12,001 and £15,000 are eligible for tapered relief By applying for the Small Business Rate Relief Scheme, property owners can significantly reduce their business rates liability on empty buildings.
2 Claim Empty Property Relief
Another strategy to avoid paying business rates on empty property is to claim Empty Property Relief This relief is available for commercial properties that have been empty for a certain period of time In most cases, properties are exempt from business rates for the first three months they are empty After this initial period, property owners can apply for Empty Property Relief to continue to avoid paying business rates.
It is important to note that the rules for Empty Property Relief can vary depending on the location of the property Some local authorities offer extended relief periods or additional exemptions for specific types of properties By researching the regulations in your area and applying for Empty Property Relief, you can reduce your business rates liability on empty buildings.
3 Consider Partial Occupation
Property owners can also consider partial occupation as a strategy to avoid paying business rates on empty property By occupying only a portion of the building while keeping the rest empty, property owners may be able to reduce their business rates liability avoiding business rates on empty property. The occupied portion of the building will still be subject to business rates, but the empty space may qualify for exemptions or relief.
Before implementing partial occupation, property owners should consult with a professional advisor to ensure that they are complying with the regulations In some cases, local authorities may require a minimum level of occupation for buildings to be eligible for relief By carefully planning the occupancy of the property, owners can minimize their business rates liability on empty buildings.
4 Apply for Charitable Relief
Property owners who own empty buildings that are used for charitable purposes may be eligible for Charitable Relief on their business rates Charitable Relief is available for properties that are occupied by registered charities or trustees for charitable purposes If the property is used for charitable activities or serves a community benefit, the owner may be able to claim relief on their business rates.
To apply for Charitable Relief, property owners must provide evidence that the building is being used for charitable purposes This can include documentation from the charity, details of the activities taking place in the building, and information on the beneficiaries of the charity By working with the local authority to demonstrate eligibility, property owners can reduce their business rates liability on empty buildings used for charitable activities.
5 Explore Exemptions and Discretionary Relief
In some cases, property owners may be eligible for exemptions or discretionary relief on their business rates for empty buildings Local authorities have the discretion to provide relief to property owners facing financial hardship or other exceptional circumstances By exploring exemptions and discretionary relief options, property owners can find additional ways to reduce their business rates liability on empty buildings.
Property owners should be proactive in researching the available exemptions and relief options in their area By presenting a strong case and working with the local authority, owners may be able to secure relief or exemptions that reduce their business rates liability It is important to keep detailed records and follow the application process carefully to maximize the chances of success.
In conclusion, business rates on empty property can be a significant financial burden for property owners However, by utilizing the Small Business Rate Relief Scheme, claiming Empty Property Relief, considering partial occupation, applying for Charitable Relief, and exploring exemptions and discretionary relief, owners can reduce or avoid paying business rates on their empty buildings By implementing these strategies and staying informed of the regulations in their area, property owners can minimize their business rates liability and make the most of their investment in empty property.