When it comes to owning a property, whether it be residential or commercial, one of the major expenses that owners have to consider is business rates. These rates can be quite a burden, especially for property owners who have empty buildings that are not generating any income. Fortunately, there are ways to minimize or even avoid business rates on empty property. In this article, we will discuss some tips for property owners looking to reduce their business rates liability.
One common strategy for avoiding business rates on empty property is to apply for an exemption. In some cases, properties that are undergoing renovation or redevelopment may be eligible for temporary exemption from business rates. Property owners can apply to the local council for an exemption by providing evidence that the property is in a state of disrepair or that major renovation work is being carried out. If the council is satisfied with the evidence provided, they may grant an exemption for a specified period of time.
Another way to avoid business rates on empty property is to consider short-term leases or licenses. By leasing the property to a short-term tenant, even on a temporary basis, property owners may be able to avoid business rates liability. This is because the responsibility for paying business rates typically falls on the occupier of the property, rather than the owner. By leasing the property out for a short period of time, property owners can shift the burden of business rates onto the tenant, thus reducing their own liability.
Property owners can also consider applying for a hardship relief to reduce their business rates liability on empty property. Hardship relief is a scheme offered by some local councils to provide financial assistance to property owners who are struggling to pay their business rates. To qualify for hardship relief, property owners must demonstrate that they are facing genuine financial difficulties and that paying the full amount of business rates would cause undue hardship. If the council is satisfied with the property owner’s circumstances, they may grant a reduction in the amount of business rates payable.
For property owners who are unable to secure exemptions or relief, there are still other ways to minimize their business rates liability on empty property. One option is to consider investing in the property to make it more attractive to potential tenants. By making improvements to the property, such as refurbishing the interior or updating the facilities, property owners may be able to attract new tenants and generate rental income. In turn, this rental income can help offset the cost of business rates on the property.
Property owners can also consider negotiating with the local council to reduce their business rates liability on empty property. By presenting a convincing case for why the property is unoccupied and highlighting any efforts made to find a tenant, property owners may be able to negotiate a lower rate or payment plan with the council. Councils are often willing to work with property owners to find a mutually agreeable solution to reduce business rates liability and encourage occupancy of empty properties.
In conclusion, there are several strategies that property owners can employ to avoid paying business rates on empty property. By applying for exemptions, leasing the property on a short-term basis, applying for hardship relief, making improvements to attract tenants, or negotiating with the council, property owners can reduce or eliminate their business rates liability. It is important for property owners to explore all available options and choose the strategy that best suits their circumstances. By taking proactive steps to minimize business rates liability, property owners can save money and maximize the value of their investment in empty property.