When it comes to owning property for business purposes, one of the most dreaded expenses that can weigh heavily on a business owner’s wallet is business rates These are taxes that are levied by the government on commercial properties However, did you know that there are ways to legally avoid paying business rates on empty property? In this article, we will explore some strategies that can help you minimize or completely eliminate this financial burden.
One of the most common ways that businesses seek to avoid paying business rates on empty property is by utilizing a little-known relief called “Empty Property Rate Relief.” This relief allows businesses to claim a full exemption from paying business rates on their property if it meets certain criteria One of the key requirements for qualifying for this relief is that the property must be unoccupied and unfurnished for a continuous period of at least three months.
Additionally, businesses can also apply for “Small Business Rate Relief” if they qualify as a small business This relief can provide businesses with a discount on their business rates if their property has a rateable value below a certain threshold By taking advantage of these relief programs, businesses can significantly reduce the amount they need to pay in business rates on their empty property.
Another strategy that businesses can use to avoid business rates on empty property is by actively marketing the property for lease or sale By demonstrating that they are making efforts to attract potential tenants or buyers, businesses can qualify for a 50% discount on their business rates for a period of 18 months This can provide businesses with some much-needed relief while they search for a new occupant for their property.
It is also important for businesses to be aware of the temporary changes to business rates that were implemented in response to the COVID-19 pandemic In an effort to support businesses during this challenging time, the government has introduced a 100% relief on business rates for eligible properties in the retail, hospitality, and leisure sectors avoiding business rates on empty property. This relief has temporarily lifted the burden of business rates on these properties, providing much-needed financial support to businesses that have been impacted by the pandemic.
Furthermore, businesses can also consider structuring their lease agreements in a way that shifts responsibility for paying business rates onto the tenant By including a clause in the lease agreement that specifies that the tenant is responsible for paying business rates, businesses can avoid having to bear this cost themselves This can be a particularly effective strategy for businesses that own multiple properties or who are looking to minimize their expenses.
In addition to these strategies, business owners should also ensure that they are proactive in managing their properties to avoid paying unnecessary business rates This includes keeping their properties well-maintained and in good condition, as properties that are deemed to be in disrepair may still be subject to business rates even if they are unoccupied By taking care of their properties and regularly inspecting them, business owners can avoid running into costly business rates bills.
In conclusion, there are several strategies that businesses can employ to avoid paying business rates on empty property From taking advantage of relief programs to actively marketing the property for lease or sale, business owners have a variety of options at their disposal By understanding the eligibility criteria for relief programs and implementing proactive property management strategies, businesses can successfully minimize or eliminate the financial burden of business rates on their empty property By taking a proactive approach to managing their properties, businesses can ensure that they are not paying more than necessary in business rates.