Business rates are charges that businesses must pay to their local council for the use of their commercial property However, if you have an empty property that you are not using, you may be able to avoid paying business rates on it This can save you a significant amount of money each year, but there are specific rules and regulations that you must follow to qualify for this exemption In this article, we will discuss some strategies that businesses can use to avoid paying business rates on empty property.
One common way that businesses can avoid paying business rates on empty property is by applying for an exemption In England, for example, businesses are eligible for a three-month exemption from business rates if their property is empty and the rateable value is below a certain threshold To qualify for this exemption, the property must be completely empty and not in use for any business purposes It is important to note that if the property is reoccupied during the three-month exemption period, the exemption will be canceled, and you will be required to start paying business rates again.
Another way to avoid paying business rates on empty property is by applying for a temporary exemption In some cases, businesses may be able to qualify for a temporary exemption of up to six months if their property is undergoing repairs or renovations To qualify for this exemption, you must provide evidence of the repair work that is being carried out and demonstrate that the property is not being used for any business purposes during this time It is essential to note that the local council may conduct inspections to ensure that the property is genuinely empty and that the repairs are necessary.
Additionally, businesses can avoid paying business rates on empty property by applying for a hardship relief If you can demonstrate that paying business rates on an empty property would cause significant financial hardship to your business, you may be able to qualify for a reduction or exemption To apply for hardship relief, you will need to provide detailed information about your financial situation and explain why paying business rates would cause financial hardship avoiding business rates on empty property. The local council will review your application and determine whether you qualify for relief based on the information provided.
Moreover, businesses can avoid paying business rates on empty property by taking advantage of the government’s Empty Property Relief scheme Under this scheme, properties that have been empty for a certain period may qualify for a discount on their business rates In England, for example, properties that have been empty for more than three months may qualify for a 50% discount on their business rates for the next six months To qualify for this relief, the property must be completely empty, and the owner must provide evidence of the property’s vacancy.
In addition to these strategies, businesses can also consider renting out their empty property on a short-term basis to avoid paying business rates By renting out the property, you can generate income that can help offset the cost of the business rates However, it is essential to note that if you rent out the property, you may be liable for other taxes, such as income tax and capital gains tax, depending on the rental income generated.
In conclusion, there are several strategies that businesses can use to avoid paying business rates on empty property By applying for exemptions, temporary relief, hardship relief, or taking advantage of government schemes, businesses can save money on their business rates while their property is vacant It is essential to understand the rules and regulations surrounding business rates and vacant properties to ensure that you are compliant with the law By following these strategies, businesses can reduce their financial burden and make the most of their vacant property