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 often be a significant expense, particularly if the property is empty. However, there are ways to avoid paying business rates on empty property, and in this article, we will explore some of the options available to you.
Business rates are taxes that are levied on most commercial properties in the UK. The rates are based on the rateable value of the property, which is determined by the Valuation Office Agency. If your property is empty, you may still be liable to pay business rates, although there are some exemptions and reliefs available.
One of the most common ways to avoid paying business rates on empty property is to claim an exemption. Properties that are empty for a certain period of time may be exempt from paying business rates. In England and Wales, for example, properties that are unoccupied for three months or less are exempt from business rates. In Scotland, the exemption period is six months.
It’s worth noting that even if your property is exempt from business rates, you will still need to inform the local council of the vacancy. Failure to do so could result in penalties, so it’s important to stay on top of your obligations.
Another option for avoiding business rates on empty property is to apply for unoccupied property rates relief. This relief is available to certain types of property, such as industrial premises and listed buildings. The relief can provide a discount of up to 100% on business rates for a specified period of time.
If you are struggling to find a tenant for your property, you may also be able to apply for empty property relief. This relief is available to properties that are actively being marketed for rent or sale. The relief can provide a discount of up to 50% on business rates for a specified period of time.
In some cases, it may be possible to apply for hardship relief if you are experiencing financial difficulties and are unable to pay the full amount of business rates. This relief is granted on a case-by-case basis and is intended to provide temporary assistance to businesses that are struggling to meet their financial obligations.
It’s important to be aware that there are strict criteria that must be met in order to qualify for these reliefs and exemptions. For example, you may be required to provide evidence that the property is genuinely empty and that you have made efforts to market it for rent or sale. It’s also important to keep detailed records of all correspondence and documentation related to the property, as this may be required as evidence in any appeals process.
If you are unsure about whether you qualify for any of these reliefs or exemptions, it may be worth seeking advice from a professional advisor or solicitor. They will be able to help you navigate the complexities of business rates and ensure that you are not paying more than you need to.
In conclusion, there are several options available to business owners who are looking to avoid paying business rates on empty property. By understanding the criteria for exemptions and reliefs, and keeping detailed records of your efforts to market the property, you can potentially reduce or even eliminate your business rates liability. With the right guidance and support, you can ensure that you are not overpaying on your commercial property taxes.