When it comes to owning a commercial property, one of the biggest expenses that business owners face is business rates. These rates are set by the government and are based on the rateable value of the property. However, if you have an empty commercial property, you may be able to avoid paying business rates altogether. In this article, we will explore some strategies that can help you avoid business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is by applying for an exemption. In England, for example, if a property has been empty for three months or more, the owner can apply for an exemption that will last for a further three months. This exemption can be extended to up to six months for industrial properties.
Another option to avoid business rates on empty property is to apply for a temporary occupation permit. This allows the property owner to let out the property on a short-term basis, which can help to generate income and avoid paying business rates. However, it is important to note that the property must be occupied for a minimum period of six weeks in order to qualify for this exemption.
Property owners can also consider demolishing the empty property in order to avoid paying business rates. Once the property has been demolished, it is no longer considered a commercial property and therefore exempt from business rates. However, this option can be costly and time-consuming, so it may not be suitable for all property owners.
Renting out the empty property at a reduced rate is another strategy that can help to avoid business rates. By lowering the rent, property owners can attract tenants more easily and generate income from the property. This can help to offset the cost of business rates and reduce the financial burden of owning an empty property.
Property owners can also consider using the property for charitable purposes in order to avoid paying business rates. Charitable properties are exempt from business rates, so by letting out the property to a charitable organization, owners can avoid paying rates on the property. This can be a great way to give back to the community while also saving money on business rates.
One final option for avoiding business rates on empty property is to apply for a business rates relief scheme. These schemes are offered by local councils and can provide financial assistance to property owners who are struggling to pay business rates. By applying for a relief scheme, property owners may be able to reduce or even eliminate their business rates payments.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. From applying for exemptions to renting out the property at a reduced rate, there are various options available to help reduce the financial burden of owning an empty commercial property. By exploring these strategies and finding the best fit for your situation, you can effectively avoid paying business rates on empty property and save money in the long run.