How To Avoid Business Rates On Empty Property

Business rates can be an expensive and stressful expense when it comes to owning property, but they don’t have to be as painful as they are today if you make the right choices ahead of time.

There are several things you can do in order to avoid business rates on empty property, and those tips are outlined in this guide on how to avoid business rates on empty property.

What Are Business Rates?

Business rates on empty property owners in the UK have to pay. The amount they have to pay is based on the value of their property. If a property is empty, the owner still has to pay business rates.

What Is The Formula For Calculating My Property’s Rates?

What is the formula for calculating my property's rates?

 

The business rates formula is based on the Rateable Value RV of your property. The RV is set by the Valuation Office Agency VOA and takes into account the size and location of your property, as well as the type of business you run.

How Can I Avoid Paying Business Rates?

If you have an empty property that you’re not using, you may be liable for business rates. However, there are a few things you can do to avoid paying:

1. Get your property exempt from business rates. This is usually only possible if the property is used for certain types of businesses, such as charities or community amateur sports clubs.

2. Ask your local authority for discretionary relief.

How To Avoid Business Rates On Empty Property?

There are a few ways to avoid paying business rates on an empty property. The first is to try and get relief from the local authority.

This can be done by proving that the property is only vacant for a short period of time, or that it is being used for certain types of businesses.

The second way to avoid paying business rates on empty property is to sublet the property to another business.

This can be done through a number of different companies that specialize in this area. Finally, you could also look into selling the property, or renting it out to a residential tenant.

Conclusion

1. The first step is to speak to your local authority and explain your situation. They may be able to offer you some relief on your rates.

2. You can also appeal to the Valuation Office Agency if you think your property has been incorrectly valued.

3. If you’re a charity or a non-profit organization, you may be exempt from business rates altogether.

4. You may also be eligible for small business rate relief if your property has a rateable value of less than £15,000.

5. If you’re struggling to pay your business rates, you can negotiate a payment plan with your local authority.

6. Finally, remember that you can claim back any overpaid business rates from the last four years.

Business Rate Exemptions Other Methods

There are other methods of exemption to avoid business rates. You can apply for a voluntary organization, or community amateur sports club rate relief.

If your property is used as a registered charity, you may be eligible for charitable rate relief. If your property is unoccupied and unfurnished for a short period of time, you may be eligible for Class E empty property rate relief.

If your property is undergoing structural alteration or is in a designated Enterprise Zone, you may be eligible for construction rate relief.

The Impact Of Business Rates On Long-term Empty Buildings

The impact of business rates on long-term empty buildings

Business rates are a significant financial burden for many businesses, especially those with long-term empty buildings.

In some cases, business rates can result in businesses having to close their doors for good. Thankfully, there are a few ways to avoid or reduce business rates on empty property.

If you Need To Sell A Property But Don’t Want To Pay Business Rates.

1. Get in touch with your local authority and explain your situation. You may be able to get a reduction or even a complete exemption from business rates.

2. Check if you’re eligible for any reliefs or discounts. For example, businesses in certain sectors may be entitled to a discount.

3. Consider subletting or leasing the property to another business. This way, you can still generate an income from the property without having to pay business rates.

4. If you’re struggling to find a tenant, you could use the property for storage or as office space for your own business. Again, this means you won’t have to pay business rates on the property.

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