When it comes to owning commercial property, one of the biggest concerns for many business owners is the cost of business rates These rates can be a significant financial burden, especially when the property is sitting empty and not generating any income Thankfully, there are ways to avoid paying business rates on empty property In this article, we will explore some strategies that business owners can use to minimize their business rates liability and save money.
One of the most common ways that business owners can avoid paying business rates on empty property is by taking advantage of exemptions and reliefs that are available In the UK, for example, there is a specific exemption called the Empty Property Rate Relief, which allows owners of certain types of empty properties to qualify for a 100% discount on their business rates for a set period of time To be eligible for this relief, the property must be completely empty and not used for any business purposes It’s important to note that there are different rules and regulations for each region, so it’s essential to check with the local authorities to determine if your property qualifies for this relief.
Another strategy that business owners can use to avoid paying business rates on empty property is by actively using the property for another purpose For example, if the property is being renovated or refurbished, the business owner can apply for a Class A exemption, which allows for a 100% discount on business rates for up to three months This exemption is especially useful for properties that are temporarily empty due to ongoing construction work or maintenance.
Furthermore, owners of empty commercial properties can also apply for a Class B exemption, which allows for a 50% discount on business rates for up to six months avoiding business rates on empty property. This exemption is specifically designed to help businesses that are struggling financially and need extra time to find a new tenant or buyer for their property By taking advantage of these exemptions and reliefs, business owners can significantly reduce their business rates liability and save money in the long run.
In addition to exemptions and reliefs, business owners can also explore other strategies to avoid paying business rates on empty property One option is to consider leasing the property to a charity or community organization, as these types of tenants are typically eligible for full or partial relief on business rates By leasing the property to a charity, business owners can not only avoid paying business rates but also support a good cause and give back to the community.
Another option is to consider using the property for storage purposes, as storage facilities are eligible for a lower rate of business rates compared to other types of commercial properties By using the property for storage, business owners can reduce their business rates liability and generate some income while they search for a new tenant or buyer for the property.
Overall, there are several strategies that business owners can use to avoid paying business rates on empty property From taking advantage of exemptions and reliefs to leasing the property to a charity or using it for storage purposes, there are many creative ways to reduce business rates liability and save money By exploring all available options and working closely with the local authorities, business owners can find the best solution for their specific situation and minimize the financial impact of empty property on their business.