When you own a property that is empty and not being used for business purposes, you may be liable for business rates These rates can be a significant financial burden, especially if the property remains empty for an extended period Fortunately, there are legal ways to avoid paying business rates on empty property In this article, we will discuss some strategies that can help you reduce or eliminate this tax liability.
One common way to avoid business rates on empty property is by applying for an exemption In the UK, certain types of properties are eligible for exemption from business rates if they meet certain criteria For example, properties that are used for storage or industrial purposes may be exempt from business rates for a set period of time To apply for an exemption, you will need to provide evidence to the local council that the property is not being used for business purposes.
Another way to avoid business rates on empty property is by using a legal loophole known as “material change of use.” This loophole allows property owners to change the designated use of their property to a non-business purpose, such as residential use, in order to avoid paying business rates However, it is important to note that this loophole can be risky, as it may not always be accepted by the local council or government authorities.
Alternatively, you can consider leasing out your empty property to a charity or community group Properties that are leased to qualifying charities or community groups are eligible for a 100% discount on business rates This can be a win-win situation, as the charity or community group gets access to a space to use for their activities, while you as the property owner can avoid paying business rates on the empty property.
Another option to consider is demolishing the empty property avoiding business rates on empty property. Once a property has been demolished, it is no longer liable for business rates However, this option may not be feasible for all property owners, as it can be costly and time-consuming It is important to weigh the pros and cons of demolishing the property before making a decision.
Property owners can also consider applying for vacant property relief Under this relief scheme, properties that have been empty for a certain period of time may be eligible for a temporary reduction in business rates The length of time that a property must be empty in order to qualify for vacant property relief varies depending on the local council regulations This can provide some relief to property owners while they work on finding a new tenant or purpose for the empty property.
It is important to note that the rules and regulations regarding business rates on empty property can vary depending on the location of the property Therefore, it is recommended to seek advice from a professional, such as a chartered surveyor or tax advisor, who can provide guidance on the best course of action for your specific situation.
In conclusion, there are several legal ways to avoid paying business rates on empty property By exploring options such as exemptions, material change of use, leasing to charities, demolishing the property, and applying for vacant property relief, property owners can reduce or eliminate their tax liability It is important to carefully consider all options and seek professional advice to ensure compliance with the law and maximize savings.