One of the significant expenses that businesses often have to deal with is business rates. These are taxes that businesses are required to pay on the premises they occupy. However, what happens when a property becomes vacant? In such cases, business rates still need to be paid unless certain exemptions or reliefs apply. In this article, we will explore ways in which businesses can avoid paying business rates on empty properties.
One possible way to avoid business rates on an empty property is to meet the criteria for an exemption. In some cases, if a property is unoccupied for a certain period, typically three months or more, it may be exempt from business rates. This exemption applies to properties with a rateable value of under a certain threshold. It’s essential to check with the local council to see if your property qualifies for this exemption.
Another way to avoid business rates on empty property is by applying for a relief scheme. There are various relief schemes available for different types of properties and situations. For example, the government introduced a temporary relief scheme for retail properties in response to the COVID-19 pandemic. This relief scheme provided a 100% discount on business rates for eligible retail, hospitality, and leisure properties for a specified period. Keeping up to date with the latest relief schemes and applying for them can help reduce or eliminate the business rates payable on an empty property.
Businesses can also avoid paying business rates on empty properties by actively seeking tenants or buyers. If a property is actively being marketed for rent or sale, it may be eligible for a short period of relief from business rates. This relief is intended to encourage property owners to find new tenants or buyers quickly. However, it’s important to note that this relief is only temporary and may vary depending on the local council’s policies.
Furthermore, businesses can consider using their empty property for charitable purposes to avoid paying business rates. Properties that are used for charitable purposes may qualify for relief or exemption from business rates. This is particularly beneficial for property owners who are unable to find a tenant or buyer for their empty property. By using the property for a charitable cause, not only can business rates be avoided, but it also helps support a worthy cause.
Another option for avoiding business rates on empty property is to consider demolishing or refurbishing the property. Properties that are undergoing significant renovation or are temporarily empty due to refurbishment may qualify for relief from business rates. Similarly, properties that are scheduled for demolition may also be exempt from business rates. However, it’s essential to check with the local council to ensure that the property meets the criteria for these reliefs.
Additionally, businesses can explore the option of applying for hardship relief to avoid paying business rates on empty property. Hardship relief is a discretionary relief scheme that local councils can offer to businesses facing financial difficulties. This relief is intended to provide temporary assistance to businesses struggling to pay their business rates. By demonstrating a genuine financial need, businesses may be able to secure hardship relief and avoid paying business rates on their empty property.
In conclusion, there are several ways in which businesses can avoid paying business rates on empty property. From exemptions and relief schemes to actively seeking tenants or using the property for charitable purposes, there are various strategies that businesses can employ to reduce or eliminate the business rates payable on their vacant property. By staying informed about the available options and working closely with the local council, businesses can effectively manage their business rates liabilities and make the most of their empty properties.