When it comes to owning and managing commercial properties, one of the biggest concerns for landlords and property owners is the issue of business rates – the local taxes that businesses are required to pay on their property However, what many property owners may not realize is that there are ways to legally avoid paying business rates on empty property In this article, we will explore some strategies and tips for minimizing or completely avoiding business rates on vacant commercial properties.
First and foremost, it’s important to understand the basic rules and regulations regarding business rates on empty property In the UK, businesses are generally required to pay business rates on their commercial properties, whether they are occupied or vacant However, there are some exceptions to this rule For instance, certain types of properties may be exempt from business rates altogether, such as agricultural land and buildings, places of worship, and properties that are used for the welfare of disabled people.
In addition, there are some temporary exemptions and reliefs available for vacant properties For example, if a property is undergoing major repairs or renovations, the owner may be able to apply for a temporary exemption from business rates for a period of up to three months This can provide some much-needed financial relief to property owners who are dealing with vacancies due to renovation work.
Another way to avoid paying business rates on empty property is to actively market the property for rent or sale In some cases, property owners may be able to qualify for an exemption from business rates if they can demonstrate that they are actively trying to find a tenant or buyer for the property This can include advertising the property online, working with a real estate agent, and attending networking events to connect with potential tenants or buyers.
Property owners should also be aware of the rules surrounding short-term lets and licenses avoiding business rates on empty property. If a property is rented out on a short-term basis, for example through a pop-up shop or temporary event space, the owner may be eligible for a temporary exemption from business rates Similarly, if a property is licensed out for a specific period of time, the owner may not be required to pay business rates on the property during that time.
It’s also worth noting that some properties may qualify for partial exemptions from business rates For example, if a property is only partially occupied, the owner may be able to receive a discount on the business rates that they are required to pay This can be particularly beneficial for property owners who are struggling to find tenants for all of their available space.
In some cases, property owners may also be able to apply for hardship relief from business rates This is typically reserved for property owners who are experiencing financial difficulties and are unable to afford the full amount of business rates that they owe To qualify for hardship relief, property owners must demonstrate that they are facing genuine financial hardship and provide evidence of their financial situation, such as bank statements and profit and loss statements.
Finally, property owners should be proactive about managing their empty properties in order to minimize their liability for business rates This can include regularly inspecting the property to prevent issues such as vandalism or squatters, maintaining the property in good condition to make it more attractive to potential tenants or buyers, and exploring creative ways to generate income from the property in the interim.
In conclusion, while business rates on empty property can be a significant financial burden for landlords and property owners, there are ways to legally avoid or reduce this expense By understanding the rules and regulations surrounding business rates, actively marketing the property, exploring temporary exemptions and reliefs, and staying proactive about property management, landlords can minimize their liability and make the most of their vacant commercial properties.