As a business owner, one of the last things you want to worry about is paying high business rates on empty property Fortunately, there are ways to legally avoid these rates and save money in the process In this article, we will discuss various strategies businesses can implement to avoid paying business rates on empty properties.
Before we delve into the strategies, it’s important to understand why empty property rates exist in the first place Empty property rates were introduced by the government to discourage property owners from leaving their properties vacant for extended periods of time The idea is to incentivize owners to make productive use of their properties by either renting them out or selling them However, this can be a burden for businesses that are temporarily vacant due to reasons such as relocation, refurbishment, or economic downturns.
One of the most common ways to avoid paying business rates on empty property is to qualify for an exemption There are several exemptions available depending on the circumstances of the vacancy For example, properties that are undergoing structural repairs or are in the process of being demolished may be exempt from business rates It’s important to check with your local council to see if your property qualifies for any exemptions.
Another strategy to avoid business rates on empty property is to secure temporary occupation of the property By allowing a temporary tenant to occupy the property, even for a short period of time, the property can be considered occupied and therefore exempt from business rates This can be a win-win situation as the property owner earns rental income while also avoiding paying business rates.
Subletting the property is another option for businesses looking to avoid business rates on empty property By subletting the property to another business, the property is no longer considered empty and therefore not subject to business rates avoiding business rates on empty property. This can be a great way to generate income from a vacant property while also avoiding additional costs.
One strategy that is commonly used by businesses to avoid business rates on empty property is to actively market the property for sale or rent By demonstrating that efforts are being made to sell or rent out the property, businesses can potentially qualify for an exemption from business rates It’s important to keep detailed records of all marketing activities to prove to the local council that genuine efforts are being made to sell or rent the property.
Alternatively, businesses can consider applying for a hardship relief waiver This is a discretionary relief that can be granted by the local council to businesses that are facing financial hardships and cannot afford to pay business rates on empty property Businesses must demonstrate that paying business rates would cause significant financial hardship in order to qualify for this relief.
Businesses can also consider negotiating with the local council to come up with a payment plan for business rates on empty property Councils may be willing to work with businesses to come up with a payment schedule that is more manageable and accommodates the business’s financial situation It’s important to communicate openly and honestly with the council to find a solution that works for both parties.
In conclusion, paying business rates on empty property can be a significant financial burden for businesses However, there are several strategies that businesses can implement to legally avoid paying these rates By exploring exemptions, temporary occupation, subletting, marketing, hardship relief, and payment plans, businesses can successfully reduce or eliminate business rates on empty property and save money in the process It’s important to consult with a professional advisor or the local council to determine the best course of action for your specific situation.