Business rates can be a costly burden for property owners, especially when a property sits empty and generates no income Thankfully, there are several legitimate ways to avoid paying business rates on empty property By understanding the guidelines and taking advantage of exemptions and reliefs, property owners can reduce or eliminate their business rate liabilities In this article, we will explore some of the strategies that can be employed to avoid business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is through the Small Business Rate Relief (SBRR) scheme The SBRR scheme offers relief to businesses that operate from a single property with a rateable value below a certain threshold If a property owner is unable to find a tenant and the property has a rateable value below the threshold set by the SBRR scheme, they may be eligible for relief on their business rates.
Another way to avoid paying business rates on empty property is through the Government’s policy on Empty Property Relief (EPR) Under this policy, certain types of properties are eligible for relief from business rates for a specific period of time For example, newly built properties are often exempt from business rates for a set period after completion By understanding the criteria for EPR and applying for relief when eligible, property owners can save significant amounts of money on business rates.
Property owners can also consider leasing their empty property to a charity or community interest company (CIC) to avoid paying business rates Charities and CICs are entitled to 80% mandatory relief on business rates for properties that are used for charitable purposes By leasing their property to a qualifying charity or CIC, property owners can benefit from this relief and avoid paying the full amount of business rates on their empty property.
In some cases, property owners may be able to apply for hardship relief if they are struggling to pay their business rates on an empty property avoiding business rates on empty property. Hardship relief is granted at the discretion of the local council and is intended to provide temporary relief to property owners who are facing financial difficulties Property owners must demonstrate that they are experiencing genuine financial hardship and provide evidence to support their claim for hardship relief.
Property owners can also explore the option of appealing the rateable value of their empty property to reduce their business rates liability If a property owner believes that the rateable value of their property is incorrect or unfairly high, they can submit an appeal to the Valuation Office Agency (VOA) The VOA will assess the property and make a determination on the rateable value, which may result in a reduction in business rates for the property owner.
Finally, property owners can consider redeveloping or repurposing their empty property to avoid paying business rates By making improvements to the property or changing its use, property owners may be able to qualify for exemptions or reliefs on their business rates For example, properties that are undergoing substantial renovation may be eligible for a temporary exemption from business rates until the work is completed.
In conclusion, there are several strategies that property owners can employ to avoid paying business rates on empty property By taking advantage of schemes such as SBRR and EPR, leasing to charities or CICs, applying for hardship relief, appealing rateable values, and redeveloping or repurposing their property, property owners can reduce or eliminate their business rates liabilities It is important for property owners to familiarize themselves with the guidelines and regulations surrounding business rates to ensure that they are not paying more than necessary on their empty property By exploring these options and seeking professional advice when needed, property owners can minimize their financial obligations and make the most of their empty property.