Business rates can be a significant expense for property owners, especially when the property is sitting empty In the UK, business rates are charged on most non-domestic properties, including commercial buildings and industrial sites These rates can often be a burden for property owners, especially if they are struggling to find tenants or buyers for their empty properties.
However, there are legal ways to avoid paying business rates on empty properties By taking advantage of exemptions, reliefs, or special provisions, property owners can significantly reduce their business rates burden In this article, we will explore five legal ways to avoid business rates on empty property.
1 Temporary Empty Property Relief
The first and most common way to avoid paying business rates on empty property is to apply for Temporary Empty Property Relief Under this relief scheme, most non-domestic properties are exempt from paying business rates for a set period of time after becoming empty In England, this period is usually three months for industrial properties and six months for other types of properties.
To apply for Temporary Empty Property Relief, property owners simply need to contact their local council and provide evidence that the property is unoccupied Once approved, the relief will be automatically applied, and the property owner will not have to pay business rates for the specified period of time It’s important to note that different rules may apply in Wales, Scotland, and Northern Ireland, so property owners should check with their local council for specific eligibility criteria.
2 Newly Built Empty Property Relief
Another way to avoid business rates on empty property is to apply for Newly Built Empty Property Relief This relief is available for newly constructed non-domestic properties that have never been occupied Property owners can qualify for this relief for up to 18 months after the property was completed.
To apply for Newly Built Empty Property Relief, property owners must inform their local council that the property is new and has never been used If approved, the relief will be granted, and the property owner will be exempt from paying business rates for the specified period This can provide a significant financial benefit to property owners who are struggling to find tenants for their newly built properties.
3 Charitable Exemption
Property owners who own or lease property to registered charities may be eligible for Charitable Exemption from business rates Charities can apply for 80% relief on business rates for their non-domestic properties if they are used for charitable purposes avoiding business rates on empty property. This exemption can apply even if the property is empty, as long as it is still being used for charitable activities.
To qualify for Charitable Exemption, property owners must provide evidence that the property is being used by a registered charity for charitable purposes Once approved, the charity will only be responsible for paying 20% of the business rates, with the remaining 80% being waived This can provide a significant financial benefit to both charities and property owners who support charitable causes.
4 Industrial Relief
Property owners who own industrial properties may be eligible for Industrial Relief from business rates Industrial properties, such as warehouses, factories, and workshops, are often subject to higher business rates due to their size and usage However, property owners can apply for Industrial Relief to reduce their rates burden.
To qualify for Industrial Relief, property owners must demonstrate that their property is used primarily for industrial purposes Once approved, the property will be eligible for a reduced business rates bill, providing financial relief to the property owner Industrial Relief can be a valuable way to save money on business rates for owners of industrial properties.
5 Enterprise Zone Relief
Property owners whose properties are located within designated Enterprise Zones may be eligible for Enterprise Zone Relief on their business rates Enterprise Zones are designated areas that offer special incentives and benefits to encourage business growth and investment Property owners within these zones can apply for relief on their business rates as part of these incentives.
To qualify for Enterprise Zone Relief, property owners must have a property located within a designated Enterprise Zone Once approved, the property will be eligible for reduced business rates or other financial incentives, depending on the specific provisions in the zone This can be a valuable way to save money on business rates for property owners in areas with Enterprise Zone designations.
In conclusion, there are legal ways for property owners to avoid paying business rates on empty property By taking advantage of exemptions, reliefs, or special provisions, property owners can reduce their rates burden and save money From Temporary Empty Property Relief to Charitable Exemption, there are a variety of options available to property owners facing high business rates on their empty properties By exploring these options and working with their local council, property owners can find a solution that works for them and their financial situation.