avoiding business rates on empty property
Empty properties can be a burden for businesses, especially when it comes to paying rates on them. Business rates are taxes that businesses pay on the non-residential properties they occupy, including offices, shops, and warehouses. However, when a property is empty, businesses may still be liable to pay rates on them unless certain exemptions or reliefs are sought. In this article, we will explore ways in which businesses can avoid paying business rates on empty properties.
First and foremost, it is important to understand the rules and regulations surrounding business rates on empty properties. In England, for example, businesses are required to pay full business rates on empty commercial properties for the first three months they are vacant. After this initial three-month period, businesses are entitled to a 100% business rates relief for a further three months for industrial properties, and a further six months for all other properties. However, local councils have the power to grant additional discretionary relief beyond this period.
One way to avoid paying business rates on empty property is to actively market the property for rent or sale. By demonstrating to the local council that efforts are being made to secure a new tenant or buyer, businesses may be able to qualify for business rates relief. It is important to keep detailed records of all marketing activities, such as listings on property websites, advertisements in local newspapers, and viewings with potential tenants or buyers.
Alternatively, businesses can consider temporarily occupying the empty property themselves to avoid paying business rates. By using the property for a short-term purpose, such as hosting events, storing inventory, or undertaking renovations, businesses may be able to qualify for temporary relief from business rates. However, it is important to check with the local council to ensure that the intended use of the property complies with regulations and does not result in any additional liabilities.
Another option for avoiding business rates on empty property is to seek out exemptions or reliefs that may be available. For example, certain types of properties, such as agricultural land and buildings, are exempt from business rates altogether. Additionally, properties that are undergoing major structural repairs or refurbishments may qualify for a temporary exemption from business rates. Businesses should consult with a qualified advisor or accountant to explore all available options for reducing their business rates liability.
In some cases, businesses may be able to negotiate with the local council to reduce the rateable value of the empty property, which would in turn lower the amount of business rates owed. This process involves providing evidence to support the case for a lower rateable value, such as recent rental or sale prices of comparable properties in the area. Businesses should be prepared to engage in a thorough valuation process and present a persuasive argument to the council in order to successfully secure a reduction in business rates.
It is also important for businesses to stay informed about changes to business rates legislation and seek professional advice when necessary. The rules and regulations surrounding business rates on empty properties can be complex and subject to change, so businesses should regularly review their obligations and explore all available options for reducing their liability. By staying proactive and seeking guidance from experts in the field, businesses can effectively navigate the challenges of managing empty properties and minimize their business rates burden.
In conclusion, businesses can take proactive steps to avoid paying business rates on empty properties by actively marketing the property, temporarily occupying it for short-term purposes, seeking exemptions or reliefs, negotiating for a lower rateable value, and staying informed about changes to legislation. By carefully considering all available options and seeking professional advice when needed, businesses can effectively manage their business rates liability and avoid unnecessary financial burdens.