When it comes to owning property for your business, there are many factors to consider One of the most important considerations is the cost of business rates, which can quickly add up and eat into your profits If you have an empty property that is not generating any income, you might be wondering how you can avoid paying business rates on it In this article, we will discuss some strategies to help you avoid business rates on empty property.
Business rates are a tax that businesses in the UK have to pay on the commercial property they occupy However, if your property is empty, you might be able to qualify for an exemption or discount on your business rates Here are some ways to avoid business rates on empty property:
1 Use the Small Business Rate Relief Scheme
If your property has a rateable value of less than £15,000, you might be eligible for the Small Business Rate Relief Scheme This scheme provides a 100% relief on business rates for properties with a rateable value of £12,000 or less Properties with a rateable value between £12,000 and £15,000 can also receive tapered relief By applying for this scheme, you can avoid paying business rates on your empty property.
2 Claim an Empty Property Rate Exemption
In some cases, you might be able to claim an empty property rate exemption Properties that are empty and have a rateable value of less than £2,900 are exempt from paying business rates The exemption lasts for three months, after which you will have to start paying business rates again However, if you can prove that your property is undergoing or in need of major repair work, you might be able to extend the exemption period.
3 avoiding business rates on empty property. Consider Temporary Reliefs
If you are unable to claim the Small Business Rate Relief Scheme or an empty property rate exemption, you can still explore other temporary reliefs to help reduce your business rates burden For example, you could apply for a hardship relief if you are facing financial difficulties that make it hard for you to pay your business rates Local councils have the discretion to grant hardship relief on a case-by-case basis.
4 Lease the Property Out
One effective way to avoid paying business rates on empty property is to lease it out to another business Once another business occupies the property, they will be responsible for paying the business rates This can help you generate income from the property while also avoiding the cost of business rates Just be sure to check the terms of your lease agreement to ensure that the new tenant is responsible for paying the business rates.
5 Explore Discretionary Rates Relief
If none of the above options are viable for your situation, you can always consider applying for discretionary rates relief from your local council Discretionary rates relief is granted on a case-by-case basis and is intended to provide relief to businesses that are facing exceptional circumstances This could include things like economic challenges, temporary closures, or major works being carried out on the property.
In conclusion, there are several strategies that you can use to avoid paying business rates on empty property From applying for rate relief schemes to leasing out the property or exploring discretionary relief, there are options available to help ease the financial burden of business rates By taking advantage of these strategies, you can ensure that your empty property doesn’t cost you more than necessary in business rates.