Empty properties can be a drain on resources for businesses, especially when they are faced with the additional burden of paying business rates on these premises However, there are ways to minimize this financial burden and potentially avoid paying business rates altogether on empty properties.
Business rates are taxes that are levied on non-domestic properties in the UK These rates are based on the rateable value of the property, which is determined by the Valuation Office Agency In most cases, business rates are payable on empty properties after a certain period of time, usually three months for commercial properties However, there are some exceptions and strategies that businesses can employ to avoid or reduce the amount of business rates they have to pay on empty properties.
One option for avoiding business rates on empty properties is to apply for exemptions or reliefs There are several types of reliefs available for empty properties, such as the empty property rate relief and the small business rate relief The empty property rate relief allows businesses to claim a full exemption from paying business rates on empty properties for a certain period of time, usually three months for commercial properties After this initial period, businesses may still be eligible for a 50% discount on the business rates for a further three months.
Similarly, the small business rate relief is available for businesses that occupy only one property and have a rateable value below a certain threshold This relief can provide businesses with a significant reduction in the amount of business rates they have to pay on their empty properties.
Another strategy for avoiding business rates on empty properties is to actively market the premises for rent or sale avoiding business rates on empty property. By demonstrating that efforts are being made to find a new tenant or buyer for the property, businesses may be able to apply for an exemption from paying business rates on the premises This can be especially effective if businesses can prove that the property is actively being marketed at a reasonable rate and that efforts are being made to find a suitable tenant or buyer.
In some cases, businesses may also be able to claim hardship relief if they can demonstrate that paying business rates on their empty properties would cause financial hardship Businesses may need to provide evidence of their financial situation and any extenuating circumstances that support their claim for hardship relief.
It is important for businesses to be proactive in managing their empty properties to avoid paying unnecessary business rates This includes keeping accurate records of when the property became vacant and any efforts that have been made to market the property for rent or sale By staying on top of their obligations and seeking advice from a professional, businesses can navigate the process of avoiding business rates on empty properties more effectively.
Additionally, businesses should be aware of any changes to government policies or regulations regarding business rates on empty properties Staying informed about any potential changes can help businesses adapt their strategies and take advantage of any new opportunities for relief or exemptions.
In conclusion, there are several strategies that businesses can employ to avoid or reduce the amount of business rates they have to pay on empty properties By applying for exemptions or reliefs, actively marketing the premises, and demonstrating financial hardship, businesses can potentially avoid paying business rates altogether on their empty properties Staying informed about relevant policies and regulations can also help businesses stay ahead of any changes that may affect their obligations regarding business rates on empty properties.