Business rates can be a significant financial burden for property owners, especially when their properties stand empty In the UK, owners of commercial properties are required to pay business rates on their empty properties, unless they qualify for an exemption or relief These business rates can add up quickly, eating into profits and draining resources However, there are ways for property owners to minimize or even avoid paying business rates on their empty properties In this article, we will explore some strategies that property owners can use to reduce their business rate liabilities and maximize savings.
One of the most common ways to avoid paying business rates on empty property is to qualify for an exemption Properties that are empty for a short period of time after becoming vacant may be eligible for a 100% exemption from business rates for the first three months After the initial three months, some properties may qualify for a further 50% relief on their business rates for an additional three months This can provide property owners with some breathing room to secure a new tenant or buyer for their property without incurring hefty business rate bills.
Another strategy that property owners can use to avoid paying business rates on empty property is to claim an exemption for small business rate relief If the property owner is a small business owner with only one property and the rateable value of the property is below a certain threshold, they may be eligible for a discount on their business rates under the small business rate relief scheme This can provide much-needed financial relief for small business owners who are struggling to keep their properties occupied.
Property owners can also consider applying for a charitable relief on their empty properties If the property is occupied by a charity or is being used for charitable purposes, the owner may be eligible for a 80% reduction in their business rates avoiding business rates on empty property. This can be a great way for property owners to support charitable causes while also saving money on their business rates bills Additionally, properties that are empty and are being held for charitable purposes may also qualify for this relief.
Some property owners may also be able to avoid paying business rates on their empty properties by taking advantage of the fresh start relief scheme Properties that have been empty for more than six months may qualify for a 50% discount on their business rates for the first 18 months after becoming vacant This can provide property owners with a significant amount of savings and help to ease the financial burden of owning an empty property.
Property owners who are struggling to find tenants for their empty properties may also consider applying for the community amateur sports club (CASC) relief This relief is available to properties that are used by community amateur sports clubs for the purposes of providing sports facilities and activities Property owners who qualify for this relief may be eligible for an 80% reduction in their business rates, providing them with substantial savings on their empty properties.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on their empty properties By taking advantage of exemptions, reliefs, and discounts that are available, property owners can minimize their business rate liabilities and maximize savings Whether it’s claiming small business rate relief, applying for charitable relief, or taking advantage of fresh start relief, property owners have a variety of options to choose from By being proactive and seeking out opportunities to reduce their business rates, property owners can ensure that their empty properties are not draining their resources and eating into their profits.