Property owners often find themselves in a difficult situation when they have empty properties that are subject to business rates These rates can add up to a significant amount of money, particularly if the property remains vacant for an extended period of time However, there are legal ways to avoid paying business rates on empty property In this article, we will explore some strategies that property owners can use to minimize or eliminate their business rates liability.
One common strategy that property owners use to avoid paying business rates on empty property is known as property guardianship Property guardianship involves placing individuals or companies in an empty property to act as live-in guardians These guardians are responsible for maintaining and safeguarding the property against damage or vandalism In return for their services, they are provided with affordable accommodation.
By having property guardians in place, the property is no longer considered vacant for the purposes of business rates This can result in significant cost savings for property owners, as they are no longer required to pay business rates on the property In addition, having property guardians can help deter criminals and squatters from entering the property, further reducing the risk of damage.
Another strategy that property owners can use to avoid paying business rates on empty property is known as temporary use or occupation This involves temporarily leasing out the property for a short period of time to a tenant or tenants By doing so, the property is considered to be in use and therefore exempt from business rates.
Property owners can also consider applying for an exemption or relief on their business rates if the property has been empty for a certain period of time avoiding business rates on empty property. In England, for example, empty commercial properties with a rateable value below £2,900 are exempt from business rates for a period of three months After this initial period, the property owner can apply for an additional three months of relief, subject to approval by the local council.
In some cases, property owners may be eligible for other forms of relief or discounts on their business rates For example, properties that are undergoing major refurbishment or redevelopment may be eligible for a temporary exemption from business rates Similarly, properties that are in a designated enterprise zone or enterprise area may qualify for business rates relief as part of a government incentive to encourage investment and development in these areas.
It is important for property owners to be aware of the regulations and guidelines surrounding business rates on empty property in their local area Failure to comply with these regulations can result in hefty fines and penalties By taking proactive steps to avoid paying business rates on empty property, property owners can save money and protect their investment.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property From property guardianship to temporary use or occupation, there are legal ways to minimize or eliminate business rates liability By staying informed and proactive, property owners can save money and protect their empty properties from damage or vandalism With the right approach, property owners can navigate the complexities of business rates on empty property and make informed decisions to safeguard their investment.