When it comes to running a successful business, there are many expenses to consider One of those expenses is business rates These are taxes that businesses in the UK must pay on non-residential properties that they occupy However, when a property is empty, business rates can still apply, which can be a significant burden on business owners In this article, we will discuss how to avoid business rates on empty property and save your business money.
One of the most common ways businesses avoid paying business rates on empty property is by claiming Empty Property Relief This relief can be applied to most commercial properties that have been empty for a certain period of time The length of time a property must be empty to qualify for Empty Property Relief varies depending on the specific regulations in your area In some cases, properties must be empty for at least 3 months before relief can be claimed, while in other cases, the waiting period may be longer.
To qualify for Empty Property Relief, you will need to notify the local council that your property is empty and provide evidence that supports your claim This can include utility bills, property inspection reports, and any other relevant documentation Once your claim has been approved, you may be eligible for a 100% exemption from business rates for a set period of time.
Another way to avoid business rates on empty property is by actively marketing the space for rent or sale If you can demonstrate that you are actively trying to find a tenant or buyer for the property, you may be able to claim an exemption from business rates avoiding business rates on empty property. This exemption is known as the “hardship relief” and is designed to help businesses that are struggling to find tenants for their empty properties.
To qualify for hardship relief, you will need to provide evidence of your marketing efforts, such as listing the property on commercial real estate websites, hiring a real estate agent, or attending property fairs and networking events The more effort you can show that you are putting into finding a tenant or buyer, the more likely you are to be granted hardship relief from business rates.
In some cases, you may also be able to avoid paying business rates on empty property by applying for a temporary exemption This type of relief is typically granted to properties that are undergoing renovation or refurbishment If you can demonstrate that the property is undergoing significant work to make it suitable for occupation, you may be eligible for a temporary exemption from business rates.
To qualify for a temporary exemption, you will need to provide evidence of the renovation work being carried out, such as building permits, contractor invoices, and before-and-after photos of the property Once your claim has been approved, you may be granted relief from business rates for a set period of time, allowing you to focus on completing the renovation without the added financial burden of paying rates on an empty property.
It is important to note that each local council has its own regulations and guidelines for claiming relief from business rates on empty property It is recommended that you contact your local council or a qualified tax advisor for specific information on how to avoid business rates on empty property in your area.
In conclusion, business rates on empty property can be a significant expense for business owners By taking advantage of Empty Property Relief, hardship relief, and temporary exemptions, you can reduce or eliminate the financial burden of paying rates on an empty property Remember to keep detailed records of your efforts to market the property or carry out renovations, as this evidence will be crucial in supporting your claim for relief With careful planning and proactive measures, you can successfully avoid business rates on empty property and save money for your business.