When it comes to owning property for business purposes, one of the major expenses that must be taken into consideration is business rates. These rates are payable on most non-domestic properties, including shops, offices, factories, and warehouses. However, there are ways to legally avoid paying business rates on empty property. This article will discuss some of the strategies that property owners can employ to minimize their business rates liability and potentially save themselves a significant amount of money.
One of the most common ways to avoid paying business rates on empty property is by seeking an exemption. Empty properties that are undergoing major renovations or repairs may be eligible for a temporary exemption from business rates. In England, for example, properties that are empty for up to three months can receive a 100% exemption from business rates. Properties that are empty for three months to six months can receive a 50% exemption. It is important to note that different rules may apply in Scotland, Wales, and Northern Ireland, so property owners should consult with their local council to determine the specific regulations in their area.
Another way to avoid paying business rates on empty property is by applying for relief. Some properties may qualify for relief from business rates if they are used for certain purposes, such as agricultural or charitable activities. Additionally, if a property is deemed to have special circumstances that make it difficult to let or occupy, the owner may be able to apply for discretionary relief from their local council. Property owners should research the different types of relief that may be available to them and submit the necessary paperwork to their local council in order to potentially lower their business rates liability.
Property owners may also consider leasing their empty property to a charity in order to avoid paying business rates. Charities are typically exempt from paying business rates on the properties they occupy, so by leasing the property to a charity, the owner may be able to transfer the liability for business rates to the charity while still keeping the property in use. This can be a win-win situation for both parties, as the charity gets access to a property for their activities and the property owner is relieved of the burden of paying business rates on an empty property.
Other strategies for avoiding business rates on empty property include demolishing the property or converting it into a different type of building that is exempt from business rates. Properties that are demolished or undergoing substantial structural changes may be eligible for a temporary exemption from business rates until the work is completed. Converting an empty property into a residential building or a property that is used solely for storage purposes may also exempt the owner from paying business rates. Property owners should carefully consider all of their options and consult with a professional advisor to determine the best course of action for minimizing their business rates liability.
In conclusion, there are several strategies that property owners can employ to legally avoid paying business rates on empty property. By seeking exemptions, applying for relief, leasing to charities, demolishing or converting the property, owners can potentially save themselves a significant amount of money in business rates. It is important for property owners to stay informed about the regulations regarding business rates in their area and to explore all available options for reducing their liability. By taking proactive steps to minimize their business rates burden, property owners can ensure that their empty properties are not costing them more money than necessary.