Business rates are taxes that must be paid by owners of non-residential properties, including empty properties. These rates can be a significant financial burden, especially for property owners who are not generating any income from their vacant premises. However, there are some strategies that property owners can use to legally avoid paying business rates on empty property. In this article, we will explore some of these strategies in more detail.
One common tactic that property owners use to avoid paying business rates on empty property is known as property guardianship. Property guardianship involves allowing individuals or companies to live or work in an empty property in exchange for a much lower fee than traditional rent. By having live-in property guardians, the property is considered to be in use and therefore exempt from empty property rates.
Another popular strategy for avoiding business rates on empty property is known as temporary use. This involves temporarily renting out the property for a short period of time to an individual or business. By doing so, the property is considered to be occupied and therefore not subject to empty property rates. This tactic can be especially useful for property owners who are looking to generate some income from their vacant premises while they search for a long-term tenant.
Some property owners choose to demolish or substantially reconstruct their empty property in order to avoid paying business rates. By starting a construction project on the property, it is no longer considered to be vacant and therefore not subject to empty property rates. This strategy can be costly and time-consuming, but it can be an effective way to avoid paying business rates in the long term.
Property owners can also consider selling or leasing their empty property to a charity or community interest group. Properties that are used for charitable purposes are exempt from business rates, so by leasing or selling the property to a qualifying organization, property owners can avoid paying business rates altogether. This can be a win-win situation, as the property owner can avoid a financial burden while supporting a charitable cause.
Additionally, property owners should be aware of the government’s Empty Property Relief scheme. Under this scheme, properties that have been empty for a certain period of time may be eligible for a temporary exemption from business rates. Property owners should check with their local council to see if they qualify for Empty Property Relief and how they can apply for it.
It is important for property owners to be proactive in managing their empty properties in order to avoid paying unnecessary business rates. By exploring these strategies and staying informed about government schemes, property owners can potentially save a significant amount of money on their business rates bill.
In conclusion, avoiding business rates on empty property is possible through various strategies such as property guardianship, temporary use, demolition or reconstruction, leasing to charities, and government relief schemes. Property owners should carefully consider their options and choose the strategy that best fits their needs and circumstances. By taking action to avoid paying business rates on empty property, property owners can save money and alleviate some of the financial burden associated with owning vacant premises.