When it comes to owning commercial property, one of the biggest concerns for business owners is the cost of business rates Business rates are charged on most non-domestic properties and can often be a significant financial burden, especially for properties that are left empty However, there are ways to legally avoid paying business rates on empty property.
Business rates are essentially a tax on non-domestic properties that are used for business purposes These rates are set by the government and are calculated based on the rateable value of the property The rateable value is determined by the Valuation Office Agency (VOA) and is used to calculate how much a property owner should pay in business rates each year.
One of the main exemptions for paying business rates on empty property is the Empty Property Rate Relief This relief allows property owners to claim a 100% exemption on business rates for a certain period of time, depending on the type of property.
For example, for industrial properties, the Empty Property Rate Relief period is 3 months, while for retail properties, the relief period is 3 months for the first year and 50% relief for the following 5 months For all other types of properties, the relief period is 3 months After the Empty Property Rate Relief period expires, the property owner will have to start paying business rates again.
Another way to avoid paying business rates on empty property is to apply for the Small Business Rate Relief avoiding business rates on empty property. This relief is available for properties with a rateable value of less than a certain threshold, which varies depending on the region Properties that are eligible for Small Business Rate Relief can claim up to 100% exemption on business rates.
It is worth mentioning that there are also specific exemptions for certain types of properties, such as listed buildings, agricultural buildings, and properties used for charitable purposes These exemptions can provide significant savings on business rates for property owners.
In order to avoid paying business rates on empty property, it is important for property owners to be proactive and take the necessary steps to apply for the relevant exemptions and reliefs This can help reduce the financial burden of owning empty property and ensure that property owners are not paying more than they need to in business rates.
Property owners should also be aware of the consequences of not paying business rates on empty property Failure to pay business rates can result in legal action being taken by the local council, including issuing a liability order, sending bailiffs to recover the debt, or even taking legal action in court.
In conclusion, there are several ways to legally avoid paying business rates on empty property, including claiming Empty Property Rate Relief, applying for Small Business Rate Relief, and taking advantage of specific exemptions for certain types of properties By being proactive and taking the necessary steps to apply for these reliefs and exemptions, property owners can reduce the financial burden of owning empty property and ensure that they are not paying more than they need to in business rates.