How To Avoid Business Rates On Empty Property
Business rates can be a significant financial burden for property owners, especially when their properties sit empty In the UK, businesses are required to pay business rates on empty commercial properties, which can add up to thousands of pounds each year However, there are ways to legally avoid paying these rates and reduce the financial strain on owners.
One of the most common ways to avoid business rates on empty property is through utilizing exemptions and reliefs that are available under UK law These exemptions can vary depending on the type of property and the circumstances surrounding its vacancy By understanding the different exemptions and reliefs that are available, property owners can work to minimize their financial liability in terms of business rates.
One of the most well-known exemptions for empty properties is the Small Business Rate Relief (SBRR) scheme This scheme provides relief for small businesses with properties that have a rateable value below a certain threshold For properties that fall under this threshold, owners may be eligible for significant reductions in their business rates, including complete exemption for properties with a rateable value of £12,000 or less.
Another common exemption is the Empty Property Relief (EPR) scheme, which provides relief for properties that have been empty for a certain period of time Under this scheme, properties are exempt from paying business rates for a set period, typically three months for most types of properties and six months for industrial properties This exemption can provide property owners with some much-needed financial relief while they work to secure tenants or make necessary property improvements.
In addition to exemptions, property owners may also be able to take advantage of other reliefs and discounts that are available for empty properties For example, properties that are undergoing renovation or repair work may be eligible for a temporary reduction in their business rates through the Renovation Relief scheme avoiding business rates on empty property. This scheme provides relief for up to 12 months for properties that are being improved or renovated, allowing property owners to focus on making necessary upgrades without the added financial burden of full business rates.
It’s important for property owners to carefully review their options and take advantage of any available exemptions and reliefs in order to avoid paying unnecessary business rates on empty properties Failure to do so can result in significant financial losses and hinder efforts to attract tenants or make improvements to the property.
In addition to exemptions and reliefs, there are other strategies that property owners can employ to minimize their business rates liability on empty properties For example, property owners can explore the possibility of leasing their properties temporarily to organizations or charities that are exempt from paying business rates By leasing their properties to eligible organizations, property owners can avoid paying business rates while also contributing to the community and potentially generating income in the form of rent.
Property owners may also consider splitting larger properties into smaller units in order to take advantage of small business rate relief for each individual unit This can help to reduce the overall business rates liability on the property and make it more attractive to potential tenants Additionally, property owners can explore the option of applying for discretionary rate relief from their local council, which can provide additional relief for properties that meet certain criteria.
Overall, there are several strategies that property owners can employ to avoid paying business rates on empty properties By taking advantage of exemptions, reliefs, and other available strategies, property owners can minimize their financial liability and work towards attracting tenants or making necessary property improvements It’s important for property owners to stay informed about their options and work closely with their local council to explore all available avenues for reducing business rates on empty properties.