Owning a property that sits empty can be a costly endeavor for any business owner. In addition to the usual expenses associated with maintaining a property, there is also the added burden of paying business rates on that property, even when it is not generating any income. However, there are ways to legally avoid paying business rates on empty property, and in this article, we will explore some of the most effective strategies for doing so.
One common misconception is that business rates are only applicable to properties that are in active use. In reality, business rates are charged on most non-domestic properties, whether they are occupied or unoccupied. This means that even if a property is empty, the owner is still required to pay business rates on it unless they can qualify for an exemption.
One of the most straightforward ways to avoid paying business rates on empty property is to qualify for an exemption. Properties that are undergoing major repairs or renovations may be eligible for an exemption from business rates for a limited period of time. This exemption typically lasts for up to three months, with the possibility of extending it to six months in some cases. To qualify for this exemption, the property must be undergoing significant structural changes that prevent it from being used for its intended purpose. This exemption can provide significant relief for business owners who are looking to refurbish their property without incurring additional costs.
Another way to avoid paying business rates on empty property is to apply for a temporary occupation permit. This permit allows a business owner or developer to occupy an empty property for a short period of time in order to carry out essential maintenance or repairs. By temporarily occupying the property, the owner can prevent it from being classified as empty and therefore avoid paying business rates on it. This can be a useful strategy for business owners who need to quickly address maintenance issues in order to bring the property back into use.
In some cases, business owners may also be able to apply for a hardship relief scheme in order to reduce or eliminate their business rates on empty property. This scheme is intended to provide financial assistance to businesses that are struggling to pay their rates due to economic hardship or other extenuating circumstances. To qualify for hardship relief, the business owner must demonstrate that they are facing genuine financial difficulties and provide evidence to support their claim. If successful, the business owner may be granted a discount or exemption on their business rates for a limited period of time.
Business owners can also explore the option of leasing their empty property to a charity or community organization in order to qualify for an exemption from business rates. Charities and community organizations are generally exempt from paying business rates on the properties that they occupy, so by leasing their property to one of these organizations, business owners can avoid paying rates on it while also supporting a good cause. This can be a win-win situation for all parties involved, as the charity or community organization benefits from access to affordable space, while the business owner saves money on business rates.
Overall, there are several effective strategies for avoiding business rates on empty property. By taking advantage of exemptions, temporary occupation permits, hardship relief schemes, and charitable leases, business owners can significantly reduce their financial burden and make the most of their empty properties. It is important for business owners to research their options and consult with a professional advisor to determine the best course of action for their specific situation. With careful planning and proactive management, business owners can effectively avoid paying business rates on empty property and put their resources to better use.