How To Avoid Business Rates On Empty Property

Empty properties can be a burden on any business owner, especially when it comes to paying business rates on them Business rates are taxes that are levied on non-domestic properties, including commercial buildings, shops, offices, and warehouses These rates can be a significant expense for businesses, especially when the property is sitting empty and generating no income However, there are ways to legally avoid paying business rates on empty property In this article, we will discuss some strategies that business owners can use to reduce or eliminate their business rates liability on empty properties.

One of the most common ways to avoid paying business rates on empty property is to apply for an exemption In England, for example, most empty properties are exempt from business rates for the first three months that they are empty After the initial three-month period, the property owner is entitled to a 100% exemption for a further three months if it is an industrial property, and a 50% exemption if it is a non-industrial property Some types of properties, such as listed buildings, may be exempt from business rates altogether, regardless of how long they are empty.

Another way to avoid business rates on empty property is to explore the option of temporarily bringing the property back into use By occupying the property with a temporary tenant or using it for a different purpose, the property owner may be able to claim a full exemption from business rates for a period of time This strategy can be particularly useful for properties that are difficult to rent out in their current condition, as it provides an opportunity to generate some income while avoiding the expense of paying business rates on an empty property.

If bringing the property back into use is not a viable option, property owners can consider demolishing the building or making substantial structural alterations to it avoiding business rates on empty property. In England, properties that are undergoing major renovations or awaiting demolition are eligible for a 100% exemption from business rates for up to 18 months This can be a cost-effective way to avoid paying business rates on a property that is no longer fit for purpose or in need of significant repairs.

In some cases, property owners may be able to apply for hardship relief to reduce their business rates liability on empty property Hardship relief is available in certain circumstances where paying business rates would cause undue financial hardship to the property owner To qualify for hardship relief, the property owner must demonstrate that they are unable to pay their business rates without experiencing financial difficulties This can be a challenging process, as it requires the property owner to provide detailed financial information and supporting evidence to support their claim.

For property owners who are struggling to find tenants for their empty property, it may be worth considering other ways to generate income from the property Renting out the property for short-term events or using it as a storage facility can help to offset the cost of business rates while the property is empty Additionally, property owners can explore the option of leasing the property to a charity or community organization, as these types of tenants are typically eligible for discounts on business rates.

In conclusion, there are several strategies that business owners can use to avoid paying business rates on empty property By taking advantage of exemptions, considering temporary uses for the property, exploring demolition or renovation options, applying for hardship relief, and seeking alternative sources of income, property owners can minimize their business rates liability while their property is empty With careful planning and a proactive approach, business owners can effectively manage the financial burden of owning empty property and avoid unnecessary expenses.