Owning property can be a lucrative investment, but when it comes to commercial property, owners can often face additional costs such as business rates. Business rates are taxes paid on non-residential properties, including shops, offices, and warehouses, to help fund local services. However, when a property sits empty, owners can face high business rates without generating any income. In this article, we will explore how property owners can avoid business rates on empty property and save money.
One common way to avoid business rates on empty property is through the Small Business Rate Relief scheme. This scheme applies to properties with a rateable value below a certain threshold, which varies depending on the location of the property. Under this scheme, eligible properties are entitled to a discount on their business rates, which can help offset the costs of an empty property. Property owners should check with their local council to see if their property qualifies for Small Business Rate Relief.
Another way to avoid business rates on empty property is by claiming an exemption. Certain types of properties are exempt from paying business rates, such as agricultural land and buildings, properties used for religious worship, and properties owned by charities. Property owners should check with their local council to see if their property qualifies for an exemption and apply for it as soon as possible to avoid paying unnecessary taxes.
Property owners can also avoid paying business rates on empty property by demonstrating that the property is being actively marketed for rent or sale. By providing evidence of marketing efforts, such as listing the property with a commercial real estate agent or advertising it online, owners can show that they are actively trying to find a tenant or buyer for the property. This can help reduce or eliminate the business rates on the property, as long as the marketing efforts are ongoing and can be verified.
Furthermore, property owners can apply for a temporary empty property relief. This relief allows owners of empty properties to receive a discount on their business rates for a certain period, typically between three to six months, to give them time to find a new tenant or buyer. Property owners should apply for this relief as soon as the property becomes empty to avoid paying full business rates during the period of vacancy.
Additionally, property owners can consider demolishing the empty property to avoid business rates altogether. Once a property has been demolished, it is no longer considered a rateable property and owners are no longer required to pay business rates on the land. However, owners should be aware of the costs and procedures involved in demolishing a property and seek professional advice before proceeding with this option.
It is important for property owners to keep track of the occupancy status of their properties to avoid unnecessary costs. Owners should notify their local council as soon as a property becomes empty and explore all available options for avoiding business rates on the empty property. By taking proactive measures and seeking advice from professionals, property owners can save money and make the most of their investments.
In conclusion, avoiding business rates on empty property is possible through various schemes and exemptions. Property owners should explore all available options, such as Small Business Rate Relief, exemptions, temporary empty property relief, marketing efforts, and property demolition, to reduce or eliminate the costs of business rates on empty property. By staying informed and taking proactive steps, owners can save money and maximize the potential of their commercial properties.