As a business owner, one of the last things you want to deal with is empty property. Whether it’s due to relocation, downsizing, or other circumstances, having an empty property can come with its own set of challenges – one of which is having to pay business rates on the property even though it’s not generating any income. However, there are ways to avoid paying business rates on empty property legally and ethically. In this article, we will discuss some strategies for avoiding business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is by claiming an exemption. In the UK, most commercial properties are subject to business rates, but there are certain exemptions that may apply if the property is empty. For example, if the property is newly built and has not yet been occupied, you may be eligible for a 100% exemption from business rates for up to three months. Additionally, if the property is undergoing major structural repairs or undergoing a change in ownership, you may also be eligible for an exemption.
Another strategy for avoiding business rates on empty property is by actively marketing the property for rent or sale. In the UK, if you can prove that you are actively marketing the property for rent or sale, you may be eligible for a 50% discount on business rates for up to three months. This can provide some relief if you are unable to find a tenant or buyer right away.
It’s important to note that simply boarding up the property and leaving it vacant may not be enough to avoid paying business rates. The local council may still consider the property to be occupied if it does not appear to be actively marketed for rent or sale. Therefore, it’s important to keep records of any marketing efforts, such as listings on property websites, advertisements, and communication with potential tenants or buyers.
If you’re still unable to find a tenant or buyer for the property, you may want to consider applying for a temporary occupation license. This allows you to temporarily rent out the property for short periods of time without committing to a long-term lease. By doing so, you may be able to generate some income from the property while still avoiding paying full business rates. However, it’s important to check with your local council to see if this option is available in your area and what the requirements are.
In some cases, it may be more cost-effective to demolish the property rather than continue to pay business rates on an empty building. If the property is in disrepair or has little chance of being rented or sold in the near future, demolishing it may be a strategic move to avoid ongoing costs. However, it’s important to consider the potential costs of demolition and any regulations or permissions that may be required before proceeding with this option.
Finally, if you are struggling to keep up with business rates on empty property, it may be worth seeking professional advice or assistance. There are commercial property consultants and tax experts who can help you navigate the process of avoiding business rates and finding the best solution for your specific situation. They can also help you explore other options, such as negotiating with the local council or applying for additional exemptions or reliefs that you may qualify for.
In conclusion, while paying business rates on empty property can be a burden for business owners, there are strategies for avoiding these costs legally and ethically. By claiming exemptions, actively marketing the property, considering temporary occupation licenses, or exploring other options, you can minimize the financial impact of having empty property. If you are unsure of how to proceed, don’t hesitate to seek professional advice to help you find the best solution for your individual circumstances.
Avoiding Business Rates on Empty Property” as “avoiding business rates on empty property