Business rates can be a significant expense for property owners, especially when a property is sitting empty. In the United Kingdom, businesses are required to pay business rates on any non-domestic property that is unoccupied. This can put a strain on property owners who are unable to find tenants or buyers for their empty buildings. However, there are ways to avoid paying business rates on empty property. In this article, we will explore some of the options available to property owners looking to reduce their business rates liability.
One of the most common ways to avoid paying business rates on empty property is by claiming an exemption. In the UK, certain types of empty properties are eligible for exemptions from business rates. For example, properties that are undergoing major repairs or structural changes may qualify for a temporary exemption. Additionally, properties that are owned by charities or community amateur sports clubs may be eligible for exemptions. Property owners should check with their local council to see if their empty property qualifies for any exemptions.
Another option for avoiding business rates on empty property is to explore the idea of occupation. This may seem counterintuitive – after all, the goal is to avoid paying business rates on an empty property – but it can be a viable option for some property owners. By allowing a non-profit organization or community group to use the property for a temporary period, the property owner may be able to qualify for an exemption from business rates. For example, allowing a local charity to use the property as a community center may make the property eligible for charitable rate relief.
Property owners can also consider applying for small business rate relief. In the UK, small businesses are eligible for relief on their business rates if their property has a rateable value below a certain threshold. By splitting an empty property into smaller units or by renting out part of the property to a small business, property owners may be able to qualify for this relief. It is important to note that small business rate relief is only available to businesses occupying the property, so property owners will need to find tenants in order to take advantage of this option.
For property owners who are unable to find tenants for their empty property, there are still other options available for reducing their business rates liability. One option is to apply for hardship relief. If paying the full business rates on an empty property would cause financial hardship for the property owner, they may be able to apply for relief from their local council. Property owners will need to provide evidence of their financial situation and demonstrate that they are making efforts to find tenants or buyers for the property. Hardship relief is not guaranteed, but it can provide some relief for property owners struggling to pay their business rates.
In some cases, property owners may be able to reduce their business rates liability by appealing their property’s rateable value. The rateable value of a property is determined by the Valuation Office Agency based on factors such as rental value and location. If a property owner believes that their property’s rateable value is too high, they can submit an appeal to have it reassessed. If successful, this could result in a lower business rates bill for the property owner. It is important to note that appealing a property’s rateable value can be a lengthy and complex process, so property owners may want to seek professional advice before pursuing this option.
In conclusion, there are several options available to property owners looking to avoid paying business rates on empty property. Whether through exemptions, occupation, small business rate relief, hardship relief, or appealing the property’s rateable value, property owners can take steps to reduce their business rates liability. By exploring these options and working with their local council, property owners can find ways to alleviate the financial burden of empty property rates. With careful planning and persistence, property owners can navigate the complex world of business rates and ensure that they are not overburdened by rates on their unoccupied properties.