Business rates can be a major expense for property owners, especially when the property is sitting empty Fortunately, there are ways to minimize or even completely avoid paying business rates on empty property In this article, we will explore seven strategies that property owners can use to reduce their business rates burden.
1 Temporary Use Exemption
One way to avoid paying business rates on an empty property is to apply for a temporary use exemption This exemption allows property owners to avoid paying business rates for up to three months if the property is being actively marketed for sale or rent To qualify for this exemption, the property must be available for occupation and actively marketed by a reliable agent.
2 Charitable Relief
Another option for property owners looking to avoid business rates on empty property is to apply for charitable relief If the property is being used for charitable purposes, the owner may be eligible for relief on their business rates This can be a great way to reduce costs while also supporting a good cause.
3 Transitional Relief
Transitional relief is a scheme that helps property owners manage increases in their business rates bills following a revaluation Property owners can apply for transitional relief to spread the cost of any increases over a number of years, reducing the impact on their finances This can be especially helpful for owners of empty properties who are facing significant rate hikes.
4 Small Business Rate Relief
Property owners who own properties with a rateable value below a certain threshold may be eligible for small business rate relief This relief can significantly reduce the amount of business rates owed on the property, making it a great option for small business owners or owners of smaller properties If the property is empty, owners can still qualify for this relief as long as they meet the eligibility criteria.
5 avoiding business rates on empty property. Demolition Relief
If a property is empty because it is due to be demolished, owners may be able to apply for demolition relief on their business rates This relief applies for up to six months before demolition starts and can help property owners avoid paying rates on a property that will soon no longer exist It is important to note that the property must be actively prepared for demolition to qualify for this relief.
6 Exempt Buildings
Certain types of buildings are exempt from business rates, even if they are empty Examples of exempt buildings include agricultural buildings and certain types of industrial buildings Property owners should verify if their empty property falls under any exempt categories to avoid paying unnecessary business rates.
7 Vacant Property Rate
Finally, property owners should be aware of the vacant property rate, which applies to properties that have been empty for more than three months The vacant property rate is a discounted rate of business rates that can be applied to properties that are empty for an extended period This can help ease the financial burden on owners of long-term empty properties.
In conclusion, there are several strategies that property owners can use to avoid or minimize the impact of business rates on empty property By exploring options such as temporary use exemption, charitable relief, transitional relief, small business rate relief, demolition relief, exempt buildings, and the vacant property rate, owners can reduce their business rates burden and protect their finances It is important for property owners to research these options thoroughly and consult with a professional adviser to determine the best course of action for their specific situation By taking proactive steps to manage business rates on empty property, owners can save money and make the most of their real estate investments.
By implementing these strategies, property owners can navigate the complexities of business rates on empty properties and ensure that they are not paying more than necessary With careful planning and consideration, owners can minimize their financial liabilities and protect their bottom line.