As a business owner, you may find yourself in a situation where you have commercial property that is sitting empty. Whether you are in between tenants or have decided to hold onto the property for future development, one thing that can be a headache is the business rates that you are required to pay on that empty property. Luckily, there are strategies that you can employ to avoid paying business rates on empty property.
First and foremost, it is important to understand the regulations surrounding business rates on empty property. In the UK, businesses are required to pay business rates on most non-domestic properties, including empty ones. However, there are some exemptions and relief schemes that may apply in certain situations.
One strategy for avoiding business rates on empty property is to take advantage of the Small Business Rate Relief scheme. This scheme is designed to help small businesses with properties that have a rateable value below a certain threshold. If your empty property falls within this threshold, you may be able to claim relief on your business rates.
Another strategy is to consider applying for the Empty Property Relief scheme. This scheme allows property owners to claim relief on their business rates for a set period of time if their property is empty. The length of time that you can claim relief for will depend on the type of property and the local council’s policies.
It is important to note that there are certain criteria that need to be met in order to qualify for Empty Property Relief. For example, the property must be completely empty and not used for any business purposes during the relief period. Additionally, you may be required to provide evidence to support your claim for relief.
If you are unable to qualify for relief under the Small Business Rate Relief scheme or the Empty Property Relief scheme, there are still other strategies that you can consider. One option is to explore the possibility of leasing your empty property to a charity. In the UK, charities are exempt from paying business rates on the properties that they occupy. By leasing your empty property to a charity, you may be able to avoid paying business rates altogether.
Alternatively, you could consider temporarily using the empty property for a different purpose that falls under a different business rates category. For example, if your property is classified as a retail space, you could explore the possibility of using it as a storage facility instead. This could potentially qualify you for relief under a different category of business rates, depending on the local council’s policies.
It is worth noting that there are penalties for failing to pay business rates on empty property. If you do not pay your business rates on time, you may be subject to enforcement action by your local council. This could include being taken to court and having your assets seized to cover the outstanding amount.
In conclusion, there are several strategies that you can employ to avoid paying business rates on empty property. Whether you qualify for relief under a specific scheme or need to explore alternative options, it is important to familiarize yourself with the regulations and seek advice from a professional if needed. By taking proactive steps to address the issue of business rates on empty property, you can potentially save yourself a significant amount of money in the long run.