Business rates on empty property can be a significant financial burden for property owners and businesses. Fortunately, there are legal ways to avoid paying these rates and minimize your costs. In this article, we will discuss some strategies to help you avoid paying business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is to temporarily occupy the property with a charity or community organization. In the UK, properties that are occupied by a registered charity or community amateur sports club are eligible for an 80% discount on business rates. By allowing a charity or community organization to use your empty property, you can significantly reduce your business rates liability while also supporting a good cause.
Another option to avoid paying business rates on empty property is to lease the property to a short-term tenant. Properties that are leased for a period of less than six weeks are exempt from business rates. By leasing your property to a short-term tenant, you can avoid paying business rates while generating some income from the property. This can be a win-win situation for both parties involved.
If finding a short-term tenant is not feasible, another strategy to avoid paying business rates on empty property is to apply for empty property rate relief. In the UK, properties that have been empty for more than three months are eligible for a 100% discount on business rates for the first three months and a 50% discount for the next three months. To qualify for this relief, you must provide evidence that the property is genuinely empty and actively marketed for rent or sale. Keep in mind that this relief is only temporary, so it is important to explore other options for long-term savings on business rates.
One creative way to avoid paying business rates on empty property is to convert the property into a temporary art installation or pop-up shop. Properties that are used for artistic or cultural purposes are eligible for a 100% discount on business rates. By transforming your empty property into a temporary art installation or pop-up shop, you can attract visitors and generate interest in the property while also avoiding business rates. This can be a fun and innovative way to make use of your empty property while saving money on business rates.
In some cases, property owners may be able to apply for a hardship relief to reduce their business rates liability. Hardship relief is available to property owners who can demonstrate that paying business rates would cause financial hardship. To qualify for hardship relief, you must provide evidence of your financial circumstances and explain why paying business rates would be a burden. While hardship relief is not guaranteed, it is worth exploring this option if you are struggling to pay your business rates on an empty property.
It is important to note that avoiding business rates on empty property does not mean neglecting your property. Empty properties can be vulnerable to vandalism, squatting, and deterioration if not properly maintained. To protect your property and avoid potential liabilities, it is important to take steps to secure the property, such as installing security systems, conducting regular inspections, and maintaining the property in good condition. By taking care of your property, you can avoid costly damages and ensure that your property remains attractive to potential tenants or buyers.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. From leasing the property to short-term tenants to applying for empty property rate relief, there are legal ways to minimize your business rates liability and save money. By exploring these options and taking proactive steps to maintain your property, you can reduce your costs and make the most of your empty property. With careful planning and creativity, you can navigate the complexities of business rates and protect your bottom line.