Business rates are one of the necessary expenses that come with owning property. However, when a property is left vacant, owners may be able to avoid paying these rates altogether. In this article, we will explore the ways in which property owners can avoid business rates on their empty properties.
One of the first things to consider is whether the property qualifies for an exemption from business rates. In most cases, properties that are empty for a short period of time may be eligible for a small business rates relief. This relief can reduce the amount of rates that need to be paid while the property remains unoccupied. However, it is important to note that this relief is only temporary and will not exempt the property from rates indefinitely.
Another option for avoiding business rates on empty property is to apply for a class of property known as “listed building relief.” Properties that are listed as historic or of architectural significance may be eligible for this relief, which can provide a 100% exemption from business rates. This can be a great option for property owners who have historical buildings that are temporarily vacant.
Similarly, properties that are undergoing extensive renovation work may also be eligible for a temporary exemption from business rates. The property must be undergoing substantial construction or renovation work that renders it uninhabitable in order to qualify for this relief. Once the work is completed and the property is occupied again, business rates will be due as normal.
For property owners who are struggling to find tenants for their empty properties, it may be worth considering a change of use. In some cases, changing the purpose of the property can exempt it from business rates. For example, converting a commercial property into residential units may qualify for a temporary exemption from business rates. It is important to check with local authorities to ensure that any change of use is compliant with planning regulations and eligible for relief from business rates.
Another avenue to explore is the option of negotiating a rates reduction with the local council. Property owners can request a formal review of their business rates and provide evidence to support their claim that the property is not capable of generating income. This can be a lengthy process, but it can result in a reduction of rates or even a complete exemption for the empty property.
Finally, property owners should be aware of the risks of leaving a property empty for an extended period of time. In some cases, local authorities may impose additional charges or penalties on properties that remain vacant for a certain period of time. These charges can quickly add up and become a significant financial burden for property owners. It is important to consider all options for avoiding business rates on empty property and take action to mitigate any potential negative consequences.
In conclusion, there are several options available to property owners who are looking to avoid business rates on their empty properties. Whether through temporary relief, change of use, negotiation with local councils, or other means, property owners can take steps to reduce or eliminate the financial burden of business rates on vacant properties. By exploring these options and taking action proactively, property owners can save money and protect their investments in the long run.