Business rates can be a significant financial burden for property owners, especially when their property is sitting empty In the UK, empty commercial properties are subject to business rates, with some exemptions and discounts available However, there are also ways to legally avoid paying business rates on empty property
One common way to avoid business rates on an empty property is by applying for empty property relief This relief can be granted for a limited period of time, typically three or six months, depending on the local council’s policy Property owners can apply for this relief by contacting their local council and providing the necessary documentation to prove that the property is indeed empty
Another option to avoid business rates on empty property is to temporarily occupy the space with a charity or community group Under the Community Empowerment Act 2015, local councils have the power to grant a discount of up to 100% on business rates for properties that are being used for charitable purposes This scheme not only helps property owners avoid paying business rates but also benefits the community by providing a space for charities and community groups to operate
Alternatively, property owners can consider leasing the empty property to a short-term tenant By doing so, the property would no longer be considered vacant, and the tenant would be responsible for paying the business rates This option can be particularly beneficial for property owners who are struggling to find a long-term tenant but still want to avoid paying business rates on the empty property
Another creative way to avoid business rates on an empty property is by engaging in a business rates mitigation scheme These schemes involve legally transferring the liability for business rates to a third party, such as a charity or a student housing provider, who may be eligible for discounts or exemptions avoiding business rates on empty property. While this option may require some upfront costs, it can result in significant savings in the long run by avoiding paying business rates on the empty property
It is important to note that while there are legal ways to avoid paying business rates on empty property, property owners should be cautious of engaging in any fraudulent or illegal activities to evade paying the rates Local councils have the authority to investigate and prosecute individuals who attempt to avoid paying business rates through deceitful means
In conclusion, there are several legitimate ways for property owners to avoid paying business rates on empty property By applying for empty property relief, leasing the property to a temporary tenant, or engaging in a business rates mitigation scheme, property owners can reduce their financial burden while complying with the law It is essential for property owners to explore these options and choose the one that best fits their individual circumstances By taking proactive steps to avoid business rates on empty property, property owners can save money and make the most of their investment
In the end, it is crucial to prioritize the proper management of empty properties to avoid unnecessary costs By exploring the various options available and staying informed about the latest legislation and policies regarding business rates, property owners can successfully navigate the challenges of owning and maintaining empty properties while minimizing their financial obligations
So, whether you choose to apply for empty property relief, lease the property to a charity or short-term tenant, or engage in a business rates mitigation scheme, there are ways to legally avoid paying business rates on empty property By taking advantage of these options, property owners can protect their investment and focus on maximizing the potential of their properties