Empty properties can be a burden for businesses, especially when it comes to paying business rates on them. These rates can add up quickly, putting a strain on the finances of business owners. However, there are some ways to legally avoid paying business rates on empty property. In this article, we will explore some of these methods and provide you with tips on how to navigate this complex issue.
One common way that businesses try to avoid paying business rates on empty property is by claiming small business rate relief. This relief is available to businesses that only occupy one property and the rateable value of that property is below a certain threshold. Depending on your location, this threshold can vary, so it is important to check with your local council to see if you qualify for this relief. Keep in mind that this relief only applies to properties that are actively being used for business purposes, so it may not be applicable if your property is completely empty.
Another option to consider is the business rates exemption for newly built properties. If you have recently constructed a new property, you may be eligible for a business rates exemption for up to 18 months. This can provide you with some breathing room while you work on getting the property occupied and generating income. It is important to note that this exemption only applies to newly built properties and does not apply to properties that are simply undergoing renovations.
Additionally, businesses can also take advantage of the mandatory exemptions for certain types of properties. For example, properties that are used for storage purposes are exempt from business rates for up to six months. This exemption can be particularly useful for businesses that are in the process of relocating or downsizing and need some time to reassess their property needs. Again, it is important to check with your local council to see if your property qualifies for this exemption.
One strategy that some businesses use to avoid paying business rates on empty property is to temporarily occupy the property with minimal use. By setting up a small office or storage area in the property, businesses can argue that the property is being used for business purposes and therefore should be exempt from business rates. However, it is important to note that this strategy can be risky and may not always hold up under scrutiny. It is always best to consult with a legal expert before attempting any questionable tactics to avoid paying business rates.
Another option to consider is renting out the property on a short-term basis. By finding tenants who are willing to occupy the property for a short period of time, businesses can avoid paying business rates on empty property. This can be a win-win situation for both parties, as the business owner can generate some income from the rental while the tenant gets temporary space to conduct their business. Just be sure to check with your local council to ensure that this arrangement does not violate any regulations regarding business rates.
In conclusion, there are several ways that businesses can legally avoid paying business rates on empty property. From small business rate relief to temporary exemptions, businesses have options when it comes to navigating this issue. By understanding the rules and regulations surrounding business rates, businesses can find ways to minimize their financial burden and focus on growing their operations. Remember to consult with a legal expert or your local council if you have any questions or concerns about avoiding business rates on empty property.