When it comes to owning commercial property, one of the biggest challenges is dealing with business rates on empty buildings. These rates can add up quickly and become a significant financial burden on property owners. However, there are ways to legally avoid paying these business rates on empty property. By taking the right steps and keeping up with regulations, property owners can save money and avoid unnecessary expenses.
One of the most common reasons why property owners have to pay business rates on empty buildings is due to the government’s Empty Property Rates (EPR) regulations. These regulations were put in place to encourage property owners to bring their empty buildings back into productive use or to demolish them. However, these regulations can be a major headache for property owners who are struggling to find tenants or buyers for their empty buildings.
One way to avoid paying business rates on empty property is to apply for an exemption. Some properties are exempt from paying business rates, such as buildings that are undergoing major repairs or renovations. Property owners can apply for a temporary exemption while the building is being worked on, giving them some relief from the financial burden of business rates.
Another way to avoid paying business rates on empty property is to actively market the building for rent or sale. By showing that efforts are being made to find a tenant or buyer, property owners can potentially qualify for a six-month exemption from business rates. This can give property owners some breathing room while they work to secure a tenant or buyer for the building.
Property owners can also consider demolishing the building if it is no longer economically viable to keep it standing. By demolishing the building, property owners can avoid paying business rates on an empty property altogether. However, this option should only be considered as a last resort, as it can be costly and time-consuming.
It is important for property owners to stay up-to-date on the regulations surrounding business rates on empty property. The rules and exemptions can vary depending on the location and type of property, so it is crucial to do thorough research and consult with a legal expert if needed. By staying informed, property owners can take advantage of any available exemptions and avoid unnecessary expenses.
In some cases, property owners may be able to negotiate with the local council to reduce or waive the business rates on empty property. Councils may be willing to work with property owners who are facing financial difficulties or unique circumstances that make it difficult to find tenants or buyers for their empty buildings. By presenting a strong case and providing evidence of efforts to market the property, property owners may be able to reach a favorable agreement with the council.
Property owners can also consider leasing the empty property to a charity or community group to avoid paying business rates. Buildings that are used for charitable purposes are often eligible for relief from business rates, so this can be a win-win for both the property owner and the organization leasing the space. This option can help property owners avoid paying business rates while also giving back to the community.
Overall, avoiding business rates on empty property requires proactive planning and strategic decision-making. Property owners should be aware of the regulations and exemptions available to them and take advantage of any opportunities to save money. By staying informed and seeking professional advice when needed, property owners can navigate the challenges of business rates on empty property and protect their financial interests.