When it comes to owning property, whether residential or commercial, there are a multitude of costs that come with it. For business owners, one of the unavoidable expenses can be business rates, also known as non-domestic rates in Scotland. These rates are charged on most non-residential properties like shops, offices, factories, and warehouses. However, there are ways to potentially avoid paying business rates on empty property, saving you money in the long run.
One of the most common reasons why a property may be empty is due to vacancies or renovations. In some cases, businesses may have multiple properties and choose to keep one vacant for future expansion or as a precautionary measure. Regardless of the reason, it’s crucial to understand the rules and regulations surrounding empty property business rates.
In the United Kingdom, business rates are generally charged on most non-domestic properties that are being used. However, empty properties may be eligible for exemptions or discounts depending on the circumstances. For example, properties that are undergoing major repair work or structural changes may qualify for a temporary exemption from business rates. This exemption usually lasts for three months after the property becomes empty.
Another way to potentially avoid business rates on empty property is by applying for a specific exemption. For example, properties that are considered “listed buildings” or have historical significance may be eligible for a business rates exemption. This exemption is designed to encourage the preservation of historical buildings and landmarks by providing relief on business rates.
Furthermore, if you own a property that falls under the Small Business Rates Relief scheme, you may also be eligible for relief on empty property rates. This scheme is specifically designed for small businesses that operate out of one property and have a rateable value below a certain threshold. By qualifying for this relief, you could potentially save a significant amount on business rates for your empty property.
If you find yourself in a situation where your property is empty but you are still being charged business rates, it’s important to take action. One option is to consider renting out the property on a temporary basis. By doing so, you may be able to generate enough income to cover the business rates while also preventing the property from falling into disrepair.
Additionally, if you have plans to develop the property in the near future, you may be able to apply for an exemption from business rates. Local councils have the discretion to grant exemptions for properties that are undergoing redevelopment or have plans for future use. By presenting a detailed proposal outlining your intentions for the property, you may be able to avoid paying business rates during the development phase.
It’s worth noting that each case is unique, and the rules surrounding business rates on empty property can vary depending on the local council and the circumstances of the property. As such, it’s essential to seek professional advice from a chartered surveyor or a business rates specialist to assess your specific situation and explore the available options for avoiding business rates on empty property.
In conclusion, business rates on empty property can be a significant financial burden for property owners. However, by understanding the rules and regulations surrounding empty property exemptions and relief schemes, you may be able to find ways to avoid paying business rates altogether. Whether it’s through temporary exemptions, specific relief schemes, or renting out the property, there are various strategies you can employ to minimize the impact of business rates on your empty property. By taking proactive steps and seeking expert advice, you can safeguard your finances and make the most of your property investment.