Business rates can be a significant expense for any property owner, particularly when the property sits empty. In the UK, business rates are taxes that are levied on most non-domestic properties, including shops, offices, and warehouses. These rates can add up quickly, especially for property owners who are struggling to attract tenants or buyers. However, there are ways to mitigate or even avoid business rates on empty property.
One of the most common ways to avoid business rates on empty property is to take advantage of the Small Business Rate Relief scheme. This scheme allows businesses with a rateable value of £12,000 or less to claim relief on their business rates. If your property falls into this category and is currently empty, you may be able to apply for this relief and reduce the amount of business rates you have to pay.
Another option for avoiding business rates on empty property is to apply for Empty Property Relief. This relief is available for properties that have been empty for a certain period of time, usually three months or more. Property owners can apply for this relief to reduce their business rates liability while they are trying to find a new tenant or buyer for the property.
It is important to note that there are some restrictions and conditions that apply to Empty Property Relief, so it is important to check with your local council to see if your property is eligible. Additionally, some local authorities offer discretionary relief for properties that have been empty for an extended period of time, so it may be worth reaching out to your council to see if any additional relief is available to you.
In some cases, property owners may be able to avoid paying business rates on empty property altogether by filling out a form known as a “nil return”. This form essentially notifies the local council that the property is empty and provides details on the reasons why. If the council accepts the reasons provided, they may grant full relief on the property, meaning that no business rates will be payable during the period of vacancy.
Property owners should also be aware of the exemptions and reliefs that are available for certain types of properties. For example, agricultural buildings and properties that are used for charitable purposes may be exempt from business rates altogether. Additionally, properties that are undergoing major structural repairs or refurbishment may be eligible for relief on their business rates until the work is completed and the property is once again in use.
It is important for property owners to stay informed about the various options available for avoiding business rates on empty property, as the rules and regulations surrounding business rates can be complex and subject to change. By staying proactive and seeking out the available reliefs and exemptions, property owners can reduce their business rates liability and alleviate some of the financial burden associated with owning empty property.
In conclusion, there are several ways to avoid business rates on empty property, from applying for Small Business Rate Relief to taking advantage of Empty Property Relief and other exemptions. By staying informed and proactive, property owners can minimize their business rates liability and make the most of their vacant properties. It is important to consult with your local council to determine the best course of action for your specific property and circumstances. With the right approach, property owners can navigate the complexities of business rates and mitigate the financial impact of owning empty property.