Business rates can be a hefty financial burden for companies, especially when it comes to properties that are sitting empty In the UK, businesses are required to pay business rates on empty properties, which can put a strain on their finances However, there are strategies that businesses can utilize to avoid or mitigate these costs and protect their bottom line In this article, we will explore some effective ways to avoid business rates on empty property.
One of the most common tactics businesses use to avoid paying business rates on empty property is to claim small business rate relief This relief scheme allows businesses with a rateable value below a certain threshold to receive a discount on their business rates By ensuring that the rateable value of the property falls within this threshold, businesses can significantly reduce the amount they have to pay in business rates.
Another way for businesses to avoid paying business rates on empty property is by actively managing the property This includes taking steps to market the property for rent or sale, as well as carrying out necessary maintenance and repairs to make the property more attractive to potential tenants or buyers By actively managing the property and demonstrating that efforts are being made to bring it back into use, businesses may be able to claim an exemption from paying business rates on the property.
Businesses can also consider applying for business rates relief for properties that are undergoing renovation or are otherwise temporarily unusable By providing evidence that the property is undergoing substantial works or is not fit for occupation, businesses may be able to secure relief from paying business rates for a period of time This can provide much-needed financial relief for businesses that are facing difficulties in finding tenants or buyers for their empty property.
In some cases, businesses may be able to apply for an exemption from paying business rates on empty property altogether avoiding business rates on empty property. This is usually granted when the property is genuinely unable to be occupied due to structural issues or other physical constraints Businesses can apply for an exemption by providing evidence of the property’s condition and demonstrating that it is not viable for occupation While exemptions are not granted easily, businesses that can prove that their property meets the criteria may be able to avoid paying business rates on the property.
Businesses can also consider entering into a short-term lease or license agreement with a third party to occupy the property temporarily By doing so, businesses can demonstrate that the property is being actively used and may be able to claim relief from paying business rates on the property Renting out the property on a temporary basis can also generate additional income for businesses and help offset the costs of paying business rates on the property.
Another option for businesses looking to avoid business rates on empty property is to consider applying for discretionary rate relief Local councils have the discretion to grant relief to businesses that are facing financial hardship or other exceptional circumstances By making a compelling case to the council for relief from paying business rates on empty property, businesses may be able to secure a reduction or waiver of the rates.
In conclusion, businesses have several strategies at their disposal to avoid paying business rates on empty property By taking proactive steps such as claiming small business rate relief, actively managing the property, applying for exemptions or relief, and considering short-term leasing options, businesses can mitigate the financial impact of business rates on empty property By carefully considering these options and exploring all available avenues, businesses can protect their bottom line and avoid unnecessary financial strain.