When it comes to owning commercial property, one of the biggest challenges that property owners face is the burden of business rates on vacant properties. These rates can quickly add up and become a significant expense, especially for those who are already dealing with the costs of maintaining an empty property. However, there are legal ways to avoid paying business rates on empty property. In this article, we will explore some of the strategies that property owners can use to minimize or even eliminate the costs of business rates on their vacant properties.
One of the most common ways that property owners try to avoid paying business rates on empty property is by claiming exemption. In the UK, empty commercial properties are exempt from paying business rates for the first three months after they become vacant. After this initial period, owners are required to pay the full rate unless they can qualify for one of the exemptions provided by the government.
One exemption that property owners can potentially qualify for is known as the “Small Business Rate Relief.” This relief allows businesses with a rateable value of less than £15,000 to claim a discount on their business rates. If the property owner can prove that their property meets the criteria for this relief, they may be able to significantly reduce the amount of business rates they are required to pay on their vacant property.
Another exemption that property owners can explore is the “Charitable Rate Relief.” If a property is occupied by a registered charity or a community amateur sports club, the owner may be eligible for 80% relief on their business rates. This can be a significant saving for property owners who are looking to avoid the burden of paying business rates on their empty commercial properties.
Property owners can also explore the option of applying for “Listed Building Exemption.” If a property is a listed building and is considered to be of historical or architectural significance, the owner may be able to claim full exemption from business rates. This exemption is designed to encourage the preservation of historic buildings and can provide relief for property owners who are struggling to find tenants for their vacant properties.
In addition to claiming exemptions, property owners can also consider other strategies to avoid paying business rates on empty property. For example, one option is to actively market the property for rent or sale. By demonstrating that the property is actively being marketed and that efforts are being made to find a tenant or buyer, property owners may be able to qualify for a 50% discount on their business rates.
Property owners can also consider demolishing the empty property as a way to avoid paying business rates. If a property is in a state of disrepair and is no longer suitable for occupation, the owner may be able to apply for demolition relief. This relief allows property owners to claim full exemption from business rates for up to 12 months while the property is being demolished or redeveloped.
It is important for property owners to be aware of the legal options available to them when it comes to avoiding business rates on empty property. By exploring exemptions, actively marketing the property, or considering demolition relief, property owners can minimize or even eliminate the burden of paying business rates on their vacant commercial properties. Ultimately, with careful planning and strategy, property owners can successfully navigate the challenges of owning empty property and avoid unnecessary expenses.
In conclusion, avoiding business rates on empty property is a common concern for property owners. By understanding the exemptions available, actively marketing the property, or considering demolition relief, property owners can minimize or eliminate the costs associated with business rates on their vacant properties. With careful planning and strategic decision-making, property owners can successfully navigate the challenges of owning empty property and ensure that they are not burdened with unnecessary expenses.