Business rates are a compulsory tax that businesses have to pay on their commercial properties. However, if you have an empty property, you may be eligible for relief on business rates. Whether you are a landlord, property developer, or business owner, avoiding business rates on empty property can save you a significant amount of money. In this article, we will explore the different ways in which you can avoid business rates on empty property.
One of the common ways to avoid business rates on empty property is through the Small Business Rate Relief scheme. This scheme allows eligible businesses with a rateable value of less than £12,000 to receive relief on their business rates. If you own an empty property that falls within this threshold, you may be able to claim relief on your business rates.
Another way to avoid business rates on empty property is by applying for the Empty Property Relief scheme. This scheme allows property owners to receive relief on their business rates for a set period if their property is empty. The length of the relief period varies depending on the local council, but it can provide a much-needed financial break for property owners.
In addition to these government schemes, there are other ways in which you can avoid business rates on empty property. One option is to temporarily let out your property to a charity or community group. Properties that are used for charitable purposes are exempt from business rates, so by letting out your property to a charity, you may be able to avoid paying business rates altogether.
Alternatively, you can consider converting your empty property into residential accommodation. Properties that are used solely for residential purposes are exempt from business rates, so by converting your property into residential units, you can avoid paying business rates on it. This option may require some investment upfront, but it can be a lucrative long-term strategy for avoiding business rates on empty property.
If you are unable to let out your property or convert it into residential accommodation, you may still be able to avoid paying business rates by applying for hardship relief. This type of relief is available to property owners who are experiencing financial hardship and are struggling to pay their business rates. By demonstrating that you are unable to afford the rates, you may be able to receive relief or a discount on your business rates.
It is important to note that there are certain restrictions and conditions that apply to these relief schemes. For example, some schemes only apply to specific types of properties or businesses, while others have strict eligibility criteria. It is important to carefully read the terms and conditions of each scheme before applying to ensure that you meet all the requirements.
In addition to relief schemes, there are other strategies that you can implement to avoid business rates on empty property. For example, you can consider negotiating with your local council to reduce or waive your business rates temporarily. By explaining your situation and providing evidence of why you are unable to pay the rates, you may be able to reach a mutually beneficial agreement with the council.
Another option is to challenge the rateable value of your property. If you believe that the rateable value has been assessed incorrectly, you can lodge an appeal with the Valuation Office Agency. If your appeal is successful, the rateable value of your property may be reduced, resulting in a lower business rates bill.
In conclusion, there are several ways in which you can avoid business rates on empty property. From government relief schemes to negotiating with your local council, property owners have a range of options available to them. By exploring these options and seeking professional advice, you can find the most cost-effective solution for avoiding business rates on your empty property.