Empty properties can be a burden for businesses, especially when they are subject to business rates. These rates can add up and eat into the profits of a company, making it harder for them to stay afloat. However, there are ways to avoid or mitigate these charges on empty properties. In this article, we will explore some of the strategies that businesses can use to minimize the impact of business rates on vacant properties.
One of the most common ways to avoid paying business rates on empty property is by claiming an exemption. In most cases, properties that are empty for a short period of time are eligible for a three-month exemption from business rates. This means that if a property is vacant for less than three months, the owner does not have to pay any business rates during this period. However, it is important to note that this exemption is only applicable to properties that are genuinely empty and not being used for any business activities.
Another way to avoid paying business rates on empty property is by applying for a temporary occupation license. This allows another person or entity to occupy the property temporarily, thereby exempting it from business rates. This can be a good option for businesses that are in the process of finding a new tenant or owner for their property. By allowing someone else to use the property temporarily, they can avoid having to pay business rates during this period.
Alternatively, businesses can consider applying for a discretionary rate relief. This is a scheme offered by local councils that allows them to reduce or waive the business rates on empty properties in certain circumstances. Each council has its own criteria for granting discretionary rate relief, so it is important to check with the local authority to see if the property is eligible for this relief. This can be a good option for businesses that are struggling financially and cannot afford to pay the full business rates on their empty property.
Another option for avoiding business rates on empty property is to demolish the building or make it uninhabitable. If a property is deemed to be unfit for occupation, it may be exempt from business rates. This can be a drastic measure, but it can be effective for businesses that have no plans to use the property in the future. However, it is important to note that this option may not be suitable for all businesses, as it can be costly and may take time to complete.
Businesses can also consider renting out the property at a reduced rate to a charity or community organization. Properties that are used for charitable purposes are eligible for an 80% discount on business rates, which can significantly reduce the amount that the owner has to pay. By renting out the property to a charity or community organization, businesses can not only avoid paying the full business rates on the property but also contribute to a good cause in the community.
In conclusion, there are several ways that businesses can avoid paying business rates on empty property. By claiming an exemption, applying for a temporary occupation license, seeking discretionary rate relief, making the property uninhabitable, or renting it out to a charity or community organization, businesses can minimize the financial burden of business rates on vacant properties. It is important for businesses to explore these options and choose the one that best fits their situation. By taking proactive steps to avoid or mitigate business rates on empty property, businesses can save money and focus on growing their operations.