When it comes to running a business, there are numerous expenses that can quickly add up and eat into your profits. One of the costs that many business owners dread is paying business rates on empty property. Fortunately, there are some ways that you can legally avoid paying these rates and save yourself some money. In this article, we will discuss some strategies for avoiding business rates on empty property.
Business rates are a tax that is charged on most non-domestic properties, including shops, offices, warehouses, and factories. These rates are based on the rateable value of the property, which is set by the Valuation Office Agency (VOA). If your property is empty, you are still required to pay business rates, although there are some exemptions and relief schemes available.
One way to avoid paying business rates on empty property is to claim empty property relief. This relief is available to businesses that own a property that has been empty for more than three months. The relief can be up to 100% of the business rates, depending on the circumstances. It is important to note that empty property relief is not automatic and you must apply for it through your local council.
Another option for avoiding business rates on empty property is to apply for an exemption. Certain types of properties are exempt from paying business rates, such as agricultural land and buildings, fish farms, and places of public religious worship. If your property falls into one of these categories, you may be able to claim an exemption from business rates.
It is also worth considering short-term leases or licences for your empty property. By entering into a short-term lease or licence agreement with another party, you may be able to transfer the liability for paying business rates onto the tenant, rather than having to pay them yourself. However, it is important to seek legal advice before entering into any lease agreements to ensure that you are fully protected.
If you are unable to find a tenant for your empty property, you may want to consider demolishing the building. Properties that are in the process of being demolished are exempt from paying business rates. However, it is important to be aware that you will still be liable for rates until the demolition is completed, so it is important to act quickly if you decide to go down this route.
One final option for avoiding business rates on empty property is to consider selling the property. If you no longer have a use for the property and are struggling to find a tenant, selling it may be the best option. By selling the property, you can transfer the liability for paying business rates onto the new owner, saving yourself money in the long run.
In conclusion, there are several ways that you can legally avoid paying business rates on empty property. Whether you are eligible for empty property relief, exemption, or are considering leasing, demolishing, or selling the property, there are options available to help you save money. It is important to carefully consider your options and seek professional advice if you are unsure of the best course of action. By taking proactive steps to avoid paying business rates on empty property, you can free up funds to invest back into your business and help it grow and thrive.
By implementing these strategies, you can save yourself money and avoid the burden of paying business rates on empty property. Remember to carefully consider all of your options and seek professional advice if needed. With the right approach, you can successfully navigate the process of avoiding business rates on empty property and keep your finances in check.