Business rates can be a significant financial burden for property owners, especially when a property is sitting empty. Fortunately, there are legal ways to avoid paying business rates on empty property, saving you money and reducing your financial stress. In this article, we will explore some of the strategies that property owners can use to minimize or even eliminate business rates on empty property.
One important thing to note is that business rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories. However, there are exemptions and reliefs available for empty properties, which can help property owners save money. Here are some ways to avoid business rates on empty property:
1. Small Business Rate Relief
If you are a small business owner and your property has a rateable value of less than £15,000, you may be eligible for Small Business Rate Relief. This relief can reduce your business rates bill by up to 100% if your property has a rateable value of £12,000 or less. Even if your property has a rateable value between £12,001 and £15,000, you may still qualify for a tapered relief.
2. Charitable Exemption
Properties that are used by registered charities for charitable purposes are exempt from paying business rates, even if they are empty. If you own a property that is being used by a registered charity and it becomes vacant, you can apply for charitable exemption to avoid paying business rates on the empty property. This can provide significant savings for property owners who support charitable organizations.
3. Industrial Relief
Industrial properties that are unoccupied and require structural alterations or repairs may qualify for Industrial Relief. This relief can provide up to 100% exemption from business rates for a set period, typically up to 6 months. Property owners can apply for Industrial Relief when the property is undergoing redevelopment or renovation work, helping to reduce the financial burden of business rates on empty industrial properties.
4. Listed Buildings Exemption
Properties that are listed buildings are often exempt from paying business rates on empty property. Listed buildings are considered to have historical or architectural significance, and as such, they may be exempt from business rates even when they are vacant. Property owners can apply for Listed Buildings Exemption to avoid paying business rates on empty listed buildings, providing financial relief for owners of historically significant properties.
5. Empty Property Relief
For non-domestic properties that have been empty for a certain period, owners may be eligible for Empty Property Relief. This relief can provide up to 100% exemption from business rates for a set period, typically up to 3 or 6 months, depending on the type of property. Property owners can apply for Empty Property Relief when their property becomes vacant, helping to reduce the financial impact of business rates on empty properties.
6. Temporary Occupation
Another way to avoid business rates on empty property is to allow temporary occupation by a third party. By leasing or licensing the property to a temporary occupant, property owners may be able to qualify for Temporary Occupation Relief, which can provide up to 100% exemption from business rates for the period of temporary occupation. This strategy can help property owners generate income from their empty property while avoiding business rates, providing a win-win solution for both parties.
In conclusion, there are several legal ways to avoid paying business rates on empty property, including Small Business Rate Relief, Charitable Exemption, Industrial Relief, Listed Buildings Exemption, Empty Property Relief, and Temporary Occupation. By taking advantage of these reliefs and exemptions, property owners can minimize or even eliminate the financial burden of business rates on vacant properties, saving money and reducing financial stress. If you own empty property, consider exploring these strategies to see how you can benefit from avoiding business rates on empty property and maximize your financial savings.