Owning an empty property can be a burden on any business owner. Not only do you have the responsibility of maintaining and securing the property, but you also have to deal with the additional cost of business rates. Business rates are taxes that owners of non-residential properties are required to pay to help fund local services. These rates can be a significant financial strain, especially when the property is not generating any income.
However, there are ways to avoid paying business rates on empty properties. By understanding the rules and regulations surrounding empty property exemptions, owners can save themselves a substantial amount of money. In this article, we will explore some of the ways that business owners can legally avoid paying business rates on empty property.
One of the most common ways to avoid business rates on empty property is by taking advantage of the empty property relief scheme. This scheme provides owners of empty properties with a temporary exemption from paying business rates for a certain period of time. The length of the exemption period varies depending on the property type and location, but it typically ranges from three to six months.
To qualify for empty property relief, the property must be genuinely empty and meet certain criteria set out by the local council. For example, the property must not be in use or occupied by any individuals, and it must be capable of being used for its intended purpose. Owners will need to apply for empty property relief with their local council, providing evidence to support their claim that the property is genuinely empty.
Another way to avoid business rates on empty property is by applying for business rates relief for hardship. This relief is designed to help businesses that are struggling financially and unable to pay their business rates. Owners must demonstrate that paying business rates would cause them undue financial hardship, such as bankruptcy or significant loss of income.
To qualify for business rates relief for hardship, owners will need to provide detailed financial information to the local council, including profit and loss statements, bank statements, and any other relevant documents. The council will review the information provided and determine whether the business qualifies for relief based on the severity of the financial hardship.
In some cases, owners may be eligible for small business rates relief, which provides a discount on business rates for properties with a rateable value below a certain threshold. This relief is aimed at small businesses and can help alleviate the financial burden of paying business rates on empty property. Owners will need to apply for small business rates relief with their local council, providing proof of their eligibility based on the rateable value of the property.
It is also worth noting that certain types of properties are exempt from paying business rates altogether. For example, agricultural land and buildings, fish farms, and some charities are eligible for business rates relief. Owners of these properties should check with their local council to determine whether they qualify for an exemption from paying business rates.
Overall, it is essential for business owners to understand the rules and regulations surrounding business rates on empty property to avoid unnecessary financial burdens. By taking advantage of empty property relief schemes, business rates relief for hardship, and small business rates relief, owners can save themselves a significant amount of money while their properties are empty. Additionally, being aware of any exemptions that may apply to their property type can further reduce the financial strain of paying business rates.
In conclusion, avoiding business rates on empty property is possible with the right knowledge and understanding of the regulations in place. By exploring the various relief schemes available and applying for exemptions where applicable, owners can alleviate the financial burden of paying business rates on empty property. It is crucial for business owners to take proactive steps in managing their empty properties to minimize costs and maximize financial wellbeing.