Empty properties can be a financial burden for businesses, especially when they are subject to business rates Business rates are taxes that businesses must pay on their commercial property, regardless of whether the property is occupied or not However, there are ways to legally avoid paying business rates on empty property In this article, we will explore some strategies that businesses can use to reduce their financial obligations when it comes to empty properties.
One of the simplest ways to avoid paying business rates on an empty property is to qualify for an exemption In the UK, properties that are unoccupied and have a rateable value of less than £2,900 are exempt from business rates This exemption can provide significant savings for small businesses that own or lease low-value properties However, it is important to note that this exemption does not apply to properties that are used for storage or other business purposes, even if they are unoccupied.
Another way to avoid business rates on empty property is to apply for a temporary exemption In some cases, businesses may be able to obtain a temporary exemption from business rates if they can prove that the property is temporarily unoccupied due to renovations, repairs, or a change in ownership This temporary exemption can provide businesses with some relief while they work to bring the property back into use It is important to check with the local council to see if the property qualifies for a temporary exemption and to follow the necessary steps to apply for it.
Alternatively, businesses can explore the option of negotiating a deal with the local council to reduce or waive the business rates on their empty property Some councils may be willing to offer discounts or reductions on business rates for properties that have been empty for an extended period of time Businesses can make a case to the council, explaining their financial situation and the reasons why the property is unoccupied By presenting a compelling argument, businesses may be able to secure a reduced rate or even a complete exemption from business rates.
Another strategy to avoid paying business rates on empty property is to consider leasing or subletting the property to another business avoiding business rates on empty property. By transferring the responsibility for the property to another party, the original business may be able to avoid paying business rates altogether However, it is important to carefully review the terms of the lease or subletting agreement to ensure that the new tenant is responsible for paying the business rates Businesses should also consider the potential risks and benefits of leasing or subletting their property before making a decision.
Finally, businesses can explore the option of applying for a hardship relief scheme to reduce their business rates on empty property Some councils offer hardship relief schemes for businesses that are struggling financially and have been unable to pay their business rates By demonstrating that they are facing financial difficulties, businesses may be able to qualify for a reduction in their business rates or a payment plan to help them manage their obligations It is important to provide evidence of financial hardship and to work closely with the local council to explore all available options.
In conclusion, empty properties can be a financial burden for businesses, especially when they are subject to business rates However, there are ways to legally avoid paying business rates on empty property By exploring exemptions, temporary exemptions, negotiations with the council, leasing or subletting options, and hardship relief schemes, businesses can reduce their financial obligations and alleviate some of the financial strain associated with empty properties It is important for businesses to carefully consider their options and to seek professional advice if needed to ensure that they are taking the best approach for their specific situation By being proactive and strategic in their approach, businesses can effectively manage their business rates on empty property and protect their financial interests