When it comes to owning empty property, one of the biggest headaches for business owners is the business rates that they are required to pay. Business rates on empty property can be a significant expense, especially for businesses that are struggling or facing financial challenges. However, there are some strategies that business owners can employ to legally avoid or reduce these rates. In this article, we will explore some tips for avoiding business rates on empty property.
1. Temporary occupation
One effective way to avoid paying business rates on empty property is to temporarily occupy the premises. By doing so, you can take advantage of the empty property rate relief scheme, which allows for a 100% exemption from business rates for properties that have been empty for a certain period of time. This period varies depending on the location, so it is important to check with your local council to find out the specific requirements in your area.
2. Property development
Another option for avoiding business rates on empty property is to carry out property development or renovation works. By actively working on the property, you may be able to qualify for an exemption or reduction in business rates. For example, properties that are undergoing substantial refurbishment or structural alterations may be eligible for a temporary exemption from business rates for up to 3 months. This can provide much-needed relief for business owners who are investing in their property to make it more suitable for future tenants.
3. Small business rate relief
If you are a small business owner with only one property and the rateable value of that property is below a certain threshold, you may qualify for small business rate relief. This relief scheme can provide up to a 100% discount on business rates, depending on the rateable value of your property. By taking advantage of this scheme, you can significantly reduce or even eliminate the business rates that you are required to pay on your empty property.
4. Charitable relief
If your empty property is being used for charitable purposes or by a registered charity, you may be eligible for charitable relief on your business rates. Charitable relief can provide up to an 80% discount on business rates for properties that are being used for charitable purposes. This can be a great way to support a worthy cause while also reducing the financial burden of owning an empty property.
5. Negotiate with the local council
In some cases, it may be possible to negotiate with the local council to reduce or waive the business rates on your empty property. This can be particularly effective if you are facing financial difficulties or if the property has been empty for an extended period of time. By presenting your case to the council and demonstrating your efforts to find a tenant or occupant for the property, you may be able to secure a reduction in business rates or a temporary exemption.
In conclusion, business rates on empty property can be a significant burden for business owners, but there are strategies that can be employed to avoid or reduce these rates. By taking advantage of schemes such as temporary occupation, property development, small business rate relief, charitable relief, and negotiation with the local council, business owners can lessen the financial impact of owning an empty property. It is important to explore all available options and seek advice from a professional advisor to find the best solution for your specific situation. By being proactive and informed, business owners can minimize their business rates on empty property and focus on finding a tenant or occupant to make the property profitable once again.