When it comes to owning property, whether it’s for residential or commercial purposes, one of the biggest expenses to consider is business rates. These rates are taxes that must be paid on non-domestic properties, including shops, offices, warehouses, and other commercial spaces. However, there are ways to mitigate these costs, especially when it comes to empty properties. In this article, we will discuss some strategies for avoiding business rates on empty property.
One common way to avoid business rates on empty property is through a process known as property guardianship. Property guardianship involves placing individuals or companies in an empty property to live or work in exchange for a lower rent. This not only helps to prevent vandalism and squatters but can also result in a significant reduction in business rates. By having occupants in the property, it is considered occupied and therefore exempt from paying the full rate.
Another strategy is to apply for business rates relief. Depending on the circumstances, you may be eligible for relief from paying business rates on an empty property. There are various relief schemes available, such as Small Business Rate Relief, Rural Rate Relief, and Charitable Rate Relief. By applying for these schemes, you may be able to significantly reduce or even eliminate the amount of business rates you are required to pay.
Furthermore, if you are planning to renovate or develop the property in the future, you may be able to apply for a temporary exemption. This means that the property will not be liable for business rates for a specified period while it is undergoing construction or redevelopment. However, it is important to note that you will need to provide evidence of your intention to carry out the works within a reasonable timeframe.
In some cases, it may be worth considering demolishing the property to avoid paying business rates altogether. Once a property has been demolished, it is no longer considered a non-domestic property and therefore is not subject to business rates. However, it is essential to check with the local authorities and obtain the necessary permits before proceeding with this option.
If you are unable to avoid paying business rates on an empty property, there are still ways to reduce the financial burden. For example, you may be able to negotiate a payment plan with the local council to spread out the costs over a more manageable period. Additionally, it is important to ensure that you are claiming any available exemptions or reliefs to minimize the amount you are required to pay.
In conclusion, there are several strategies for avoiding business rates on empty property. Whether through property guardianship, relief schemes, temporary exemptions, demolition, or negotiation, there are ways to mitigate the costs associated with owning an empty commercial property. By exploring these options and seeking professional advice when needed, property owners can take steps to reduce their financial obligations and make the most of their investments.