Empty properties can be a significant financial burden for business owners, particularly when it comes to paying business rates. Business rates, also known as non-domestic rates, are taxes that business owners must pay on properties they occupy for commercial purposes. However, what many business owners may not be aware of is that there are ways to avoid paying business rates on empty property. In this article, we will explore the various methods business owners can use to legally avoid business rates on empty properties.
One of the most common ways to avoid paying business rates on empty property is through claiming empty property rate relief. This relief is available to business owners who have a property that has been unoccupied for a certain period of time. The amount of relief available varies depending on the location of the property, with some areas offering 100% relief for a certain period of time.
To qualify for empty property rate relief, business owners must ensure that the property meets certain criteria. For example, the property must be completely empty and not being used for any commercial purposes. Additionally, the property must be actively being marketed for rent or sale. It’s important for business owners to keep detailed records of their efforts to market the property, as this may be required as proof when applying for empty property rate relief.
Another way to avoid paying business rates on empty property is through the use of temporary occupation. By allowing a charity or community interest group to use the property temporarily, business owners can qualify for a 50% discount on their business rates. This discount can be a significant cost-saving measure for business owners who are struggling to find a permanent tenant for their property.
It’s worth noting that business owners can also apply for hardship relief if they are experiencing financial difficulties and are struggling to pay their business rates. This relief is granted on a case-by-case basis and is typically only available to businesses that can demonstrate that they are facing severe financial hardship.
Business owners should also be aware of the government’s plans to introduce new legislation regarding business rates on empty property. The government has indicated that it will be introducing a new policy that will increase the amount of business rates payable on empty property. This policy is designed to encourage business owners to bring their properties back into use and reduce the number of long-term empty properties across the country.
In light of these upcoming changes, it’s important for business owners to explore all available options for avoiding business rates on empty property. By taking advantage of empty property rate relief, temporary occupation discounts, and hardship relief, business owners can significantly reduce the financial burden of owning an empty property.
In conclusion, there are several ways for business owners to avoid paying business rates on empty property. From claiming empty property rate relief to allowing temporary occupation, there are a variety of options available to help business owners reduce their tax liabilities. With the impending changes to business rates on empty property, it’s more important than ever for business owners to explore these options and take proactive steps to minimize their tax exposure. By staying informed and taking advantage of available relief programs, business owners can navigate the complex world of business rates and ensure that their empty properties are not an unnecessary financial burden.