Business rates are a mandatory tax that is charged on most non-residential properties in the UK. These rates can be a significant financial burden for property owners, especially when the property is sitting empty. avoiding business rates on empty property can save owners a significant amount of money and help them avoid unnecessary expenses. In this article, we will discuss five ways that property owners can legally avoid paying business rates on empty property.
1. Temporary Occupation
One way to avoid paying business rates on empty property is to temporarily occupy the space. By renting out the property, even for a short period of time, owners can qualify for a temporary vacant exemption. This exemption allows property owners to avoid paying business rates for a limited amount of time while they search for a long-term tenant. It is important to note that the property must be genuinely occupied and used during this time to qualify for the exemption.
2. Demolition or Renovation
Another way to avoid business rates on empty property is to demolish or renovate the property. Properties that are undergoing major renovations or are in the process of being demolished may qualify for a demolition or renovation exemption. This exemption allows property owners to avoid paying business rates for a certain period of time while the property is being renovated or prepared for redevelopment. It is important to check with the local council to see if the property qualifies for this exemption.
3. Small Business Rates Relief
Property owners may also be able to avoid paying business rates on empty property by applying for small business rates relief. This relief is available to properties with a rateable value of less than £15,000 and can help reduce or eliminate the business rates owed on the property. To qualify for small business rates relief, the property must be used for a qualifying business purpose or be available for letting.
4. Charity Relief
Charitable organizations that own empty property may be eligible for charity relief, which allows them to avoid paying business rates on the property. To qualify for charity relief, the property must be used for charitable purposes or be held for future charitable use. Property owners should check with the local council to see if their property qualifies for this relief and to apply for the exemption.
5. Using the Property for Storage
Property owners can also avoid paying business rates on empty property by using the space for storage purposes. If the property is used solely for storage, it may qualify for an empty property rate relief. This relief allows property owners to avoid paying business rates on the property as long as it is only used for storage purposes. It is important to ensure that the property is not used for any other business activities to qualify for this relief.
In conclusion, there are several ways that property owners can legally avoid paying business rates on empty property. By taking advantage of temporary occupation exemptions, demolition or renovation exemptions, small business rates relief, charity relief, and empty property rate relief, property owners can save money and avoid unnecessary expenses. It is important to carefully review the eligibility criteria for each exemption and to work closely with the local council to apply for the exemptions. By utilizing these strategies, property owners can effectively manage their vacant properties and reduce their financial burden.