Business rates can be a hefty expense for property owners, especially when the property sits empty. In some cases, property owners may be able to avoid paying these rates on empty properties by taking advantage of certain exemptions or reliefs. Understanding these options can help property owners save money and alleviate some of the financial burden associated with owning an empty property.
One way to potentially avoid paying business rates on empty property is by applying for the empty property rate relief. This relief is available to property owners who have a commercial property that has been empty for a certain period of time. In most cases, the relief applies for the first three months that the property is empty. After this initial period, the property owner may still be eligible for a reduced rate of 50% for a further three months.
To qualify for this relief, the property must have been used for a business within the last year and have a rateable value under a certain threshold. Property owners should check with their local council to find out if they are eligible for this relief and how to apply.
Another option for avoiding business rates on empty property is by applying for the listed building exemption. This exemption applies to properties that are listed as historic buildings or have special architectural or historic interest. Property owners may be able to avoid paying business rates on these properties if they are unable to find a suitable tenant due to the restrictions placed on making alterations to listed buildings.
It’s important to note that property owners must inform their local council if their property falls under this exemption in order to avoid penalties for non-payment of business rates. They may need to provide evidence such as a listed building certificate or proof of being on a heritage list to support their claim.
Additionally, property owners may be able to avoid paying business rates on empty property by applying for the small business rate relief. This relief is available to businesses with a rateable value below a certain threshold and can significantly reduce the amount of business rates owed. Property owners should check with their local council to see if they qualify for this relief and how to apply.
If a property owner is unable to secure any of the exemptions or reliefs mentioned above, they may still have other options for avoiding business rates on empty property. For example, they could consider leasing the property to a charity or community amateur sports club (CASC). Properties that are leased to these types of organizations may be eligible for a mandatory rate relief of 80%. This can be a win-win situation for both the property owner and the organization benefiting from the space.
Property owners should keep in mind that there are time limits for some of the exemptions and reliefs mentioned above. It’s important to act quickly and apply for these benefits as soon as possible to avoid paying unnecessary business rates on empty property. Failure to do so could result in hefty fines or penalties for non-payment.
In conclusion, avoiding business rates on empty property is possible with the right knowledge and proactive approach. By taking advantage of exemptions, reliefs, and other options available, property owners can save money and reduce the financial burden associated with owning an empty property. It’s important to stay informed and work closely with the local council to ensure compliance with regulations and deadlines. With a strategic approach, property owners can successfully navigate the complexities of business rates and minimize costs on empty properties.