Business rates can be a significant financial burden for property owners, especially when the property is sitting empty Empty property rates are a tax imposed by the government on commercial properties that are unoccupied for an extended period of time However, there are ways to legally avoid paying business rates on empty property In this article, we will explore some of the ways property owners can minimize or eliminate their business rates liability.
1 Temporary Relief
One of the most common ways to avoid paying business rates on empty property is to apply for temporary relief In England, the government offers a 3-month exemption from business rates for newly built properties or properties that have been empty for at least 3 months This can provide property owners with some breathing room to find a new tenant or decide on the future use of the property.
Additionally, property owners can apply for a 3-month extension to the relief if they can demonstrate that they are actively marketing the property for rent or sale This can be a useful option for property owners who are struggling to attract interest in their property.
2 Use the Small Business Rate Relief Scheme
Property owners may also be able to avoid paying business rates on empty property by taking advantage of the Small Business Rate Relief Scheme This scheme is designed to help small businesses with their business rates liability, but it can also benefit property owners who are struggling to find tenants for their empty properties.
Under the Small Business Rate Relief Scheme, properties with a rateable value of less than £12,000 are eligible for 100% relief on their business rates Properties with a rateable value between £12,001 and £15,000 may qualify for tapered relief By applying for the scheme, property owners can significantly reduce their business rates liability on empty property.
3 Explore Exemptions
Property owners should also explore whether their empty property is eligible for any exemptions from business rates avoiding business rates on empty property. In some cases, certain types of properties may be exempt from business rates altogether For example, properties that are undergoing major renovation or redevelopment may be eligible for an exemption from business rates for a specified period of time.
Additionally, properties that are classified as listed buildings or are considered to have historical or architectural significance may also be exempt from business rates Property owners should consult with their local council to determine if their empty property qualifies for any exemptions from business rates.
4 Consider Short-term Leases
Another option for property owners looking to avoid paying business rates on empty property is to consider entering into short-term leases with tenants By temporarily leasing out the property, property owners can generate rental income and avoid the business rates liability on the property.
Short-term leases can also help property owners maintain the property and prevent it from falling into disrepair while they search for a long-term tenant This can be particularly beneficial for properties in high-demand areas or properties that require minimal refurbishment to attract tenants.
5 Appeal the Business Rates Assessment
If property owners believe that their business rates assessment is incorrect or unfair, they have the right to appeal to the Valuation Office Agency (VOA) The VOA is responsible for assessing the rateable value of commercial properties and determining the business rates liability.
Property owners can submit an appeal to the VOA if they believe that the rateable value of their property is inaccurate or if they can provide evidence that their property should be exempt from business rates By appealing the assessment, property owners can potentially reduce their business rates liability on empty property.
In conclusion, there are several strategies that property owners can employ to avoid paying business rates on empty property By taking advantage of temporary relief, utilizing the Small Business Rate Relief Scheme, exploring exemptions, considering short-term leases, and appealing the business rates assessment, property owners can minimize or eliminate their business rates liability and alleviate the financial burden of owning empty property Consulting with a professional advisor or tax specialist can help property owners navigate the complexities of business rates and identify the most effective strategies for their specific situation.