When it comes to owning commercial property, one of the biggest headaches for property owners is the business rates that come with it. Business rates are taxes that property owners have to pay to the local government for the upkeep of local services like schools, roads, and emergency services. However, when a property sits empty, the burden of paying business rates on that property can become crippling for the owner. In this article, we will discuss some strategies that property owners can use to avoid paying business rates on empty property.
One of the most common ways that property owners avoid paying business rates on empty property is by taking advantage of exemptions and reliefs that are available. There are a number of circumstances in which property owners may be able to claim relief from business rates on their empty property. For example, properties that are undergoing major repairs or renovations may be eligible for a temporary exemption from business rates. Similarly, properties that are in the process of being redeveloped may also qualify for relief from business rates.
Another strategy that property owners can use to avoid paying business rates on empty property is by actively marketing the property for rent or sale. In some cases, property owners may be able to claim an exemption from business rates if they can demonstrate that they are actively trying to find a tenant or buyer for the property. This can be done by listing the property with a reputable real estate agent, advertising the property online, or attending property fairs and networking events.
Property owners can also consider leasing the property to a charity or community group in order to avoid paying business rates on empty property. Charities and community groups are often eligible for relief from business rates, so leasing the property to one of these organizations can be a win-win situation for both parties. The charity or community group gets a space to operate from, and the property owner avoids having to pay business rates on an empty property.
In some cases, property owners may be able to claim hardship relief from business rates on their empty property. Hardship relief is available to property owners who can prove that paying business rates on their empty property would cause them undue financial hardship. Property owners who are struggling to make ends meet may be able to claim hardship relief in order to avoid paying business rates on their empty property.
Property owners should also be aware of the rules surrounding business rates on empty property. In England, for example, properties with a rateable value of less than £2,900 are exempt from business rates altogether, regardless of whether they are empty or occupied. In Scotland, properties with a rateable value of less than £1,700 are exempt from business rates. Property owners should familiarize themselves with the rules and regulations in their area in order to avoid paying unnecessary business rates on their empty property.
Finally, property owners should consider seeking professional advice when it comes to avoiding business rates on empty property. Property tax experts and real estate advisors can provide valuable guidance and assistance to property owners who are looking to reduce their business rates burden. These professionals can help property owners navigate the complex rules and regulations surrounding business rates, and can help them identify the most effective strategies for avoiding paying business rates on their empty property.
In conclusion, there are a number of strategies that property owners can use to avoid paying business rates on empty property. By taking advantage of exemptions and reliefs, actively marketing the property, leasing to charities or community groups, claiming hardship relief, and seeking professional advice, property owners can significantly reduce their business rates burden and protect their bottom line. avoiding business rates on empty property is not only possible, but it can also help property owners save money and resources that can be reinvested in their properties.