Business rates are taxes that businesses need to pay on the commercial properties they own or rent However, empty properties are also subject to business rates which can be a significant financial burden for business owners In this article, we will discuss ways to avoid paying business rates on empty property.
One of the most common reasons for business property owners to keep their property empty is because they are unable to find a suitable tenant In such cases, paying business rates on an empty property can add to their financial woes It is important to note that business rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories.
There are several ways business owners can avoid paying business rates on empty property One option is to claim empty property relief This relief is available for properties that have been empty for a certain period of time In England, for example, an empty property can qualify for a 100% relief for the first three months it is empty, and 50% relief for the next three months After six months, the property will be charged the full rate.
To qualify for empty property relief, business owners need to demonstrate that the property is genuinely empty and not being used for any business purposes This means that the property cannot be used for storage or any other business-related activities It is important to keep accurate records and documentation to prove that the property is genuinely empty.
Another way to avoid paying business rates on empty property is to apply for hardship relief This relief is available for business owners who are facing financial hardship and are unable to pay the business rates on their empty property Business owners need to demonstrate that they are in financial difficulty and provide evidence to support their claim.
It is important to note that hardship relief is not a long-term solution and is usually granted for a limited period of time avoiding business rates on empty property. Business owners need to reapply for hardship relief if they continue to face financial difficulties It is recommended to seek professional advice when applying for hardship relief to ensure that all requirements are met.
In some cases, business owners may decide to demolish their empty property to avoid paying business rates Once the property is demolished, it is no longer liable for business rates However, it is important to obtain the necessary planning permissions and comply with all regulations before demolishing a property.
Business owners may also consider renting out their empty property on a short-term basis to avoid paying business rates By renting out the property, business owners can generate income and avoid the financial burden of paying business rates on an empty property It is important to comply with all legal requirements and ensure that the property is suitable for rental purposes.
Alternatively, business owners can consider selling their empty property to avoid paying business rates By selling the property, business owners can recover some of their investment and avoid the ongoing costs of maintaining an empty property It is important to engage a qualified real estate agent to assist with the sale process and ensure a smooth transaction.
In conclusion, paying business rates on empty property can be a significant financial burden for business owners However, there are ways to avoid paying business rates on empty property, such as claiming empty property relief, applying for hardship relief, demolishing the property, renting out the property, or selling the property It is important to carefully consider the options available and seek professional advice to determine the best course of action By taking proactive steps, business owners can minimize their financial obligations and make the most of their empty property.