Empty property can be a burden for business owners. Not only do they have to deal with the costs of maintaining a vacant building, but they may also be required to pay business rates on the property. Business rates are taxes that are charged on most non-domestic properties, including shops, offices, and warehouses. These rates can add up quickly, especially if the property stays vacant for an extended period of time. However, there are some ways that business owners can avoid paying business rates on empty property.
One common way to avoid business rates on empty property is to apply for an exemption or relief. The government offers several types of relief for empty properties, often depending on the reason for the vacancy. For example, if a property is empty due to structural repairs or redevelopment, business owners may be able to apply for an exemption. This means that they do not have to pay business rates on the property for a set period of time.
Another option for avoiding business rates on empty property is to lease the property to a charity or community amateur sports club. Properties that are occupied by these organizations are eligible for an 80% discount on business rates. This can make it much more affordable to keep the property occupied, even if it is not being used for commercial purposes.
In some cases, business owners may be able to avoid paying business rates on empty property by appealing the rateable value of the property. The rateable value is used to calculate how much business rates a property owner has to pay. If the rateable value is incorrect, business owners may be able to get it reduced, resulting in lower business rates.
Another option for avoiding business rates on empty property is to apply for a temporary occupation permit. This allows business owners to temporarily occupy the property for a short period of time without having to pay business rates. This can be useful if the property is only going to be vacant for a short time, such as during renovations or a change of tenants.
Some business owners choose to demolish empty properties in order to avoid paying business rates. Once a property has been demolished, it is no longer liable for business rates. However, this option can be expensive and time-consuming, so it may not be practical for all business owners.
Renting out the property on a short-term basis is another way to avoid paying business rates on empty property. By renting out the property for a few months or even weeks, business owners can keep the property occupied and avoid having to pay business rates on it. This can be a good option for properties that are only vacant temporarily, such as seasonal businesses or pop-up shops.
Finally, business owners can consider selling the property in order to avoid paying business rates on empty property. Once a property is sold, the new owner will be responsible for paying business rates on it. This can be a good option for business owners who are unable to lease or occupy the property themselves.
In conclusion, there are several ways that business owners can avoid paying business rates on empty property. By applying for exemptions or relief, leasing the property to a charity or community organization, appealing the rateable value, obtaining a temporary occupation permit, demolishing the property, renting it out on a short-term basis, or selling the property, business owners can reduce or eliminate the financial burden of business rates on empty property. By exploring these options, business owners can make the best decision for their individual circumstances and avoid unnecessary expenses.