Business rates on empty property can be a significant financial burden for property owners. Depending on the location and size of the property, these rates can add up to thousands of pounds each year. However, there are strategies that can be implemented to avoid paying business rates on empty property. In this article, we will explore five key strategies that property owners can use to minimise or eliminate their business rates liability.
1. Temporary occupation
One effective strategy to avoid business rates on empty property is to temporarily occupy the space. By placing temporary occupants in the property, such as artists, local businesses, or community groups, the property can be classified as occupied rather than empty. This can exempt the property from business rates for a certain period of time, depending on the regulations in the specific jurisdiction.
Property owners can reach out to local businesses or organisations to find temporary occupants for the property. This not only helps to avoid business rates but also benefits the community by utilising otherwise unused space. However, it is important to ensure that the temporary occupation is legitimate and does not violate any regulations regarding the use of the property.
2. Charitable occupation
Another effective strategy to avoid business rates on empty property is to allow a charity to occupy the space. In many jurisdictions, properties that are occupied by registered charities are exempt from paying business rates. By allowing a charity to use the property, property owners can avoid the financial burden of business rates while supporting a good cause.
Property owners can reach out to local charities to discuss the possibility of occupying the property. This not only benefits the property owner financially but also provides a valuable resource for the charity to carry out its operations. It is important to ensure that the charity’s occupation of the property complies with all relevant regulations and does not pose any legal risks.
3. Property development
Property development is another strategy that property owners can use to avoid business rates on empty property. By carrying out development work on the property, such as refurbishment or renovation, the property can be classified as undergoing construction rather than remaining empty. This can exempt the property from paying business rates for a certain period of time, depending on the extent of the development work.
Property owners can work with contractors and architects to develop a plan for the property that meets the requirements for exemption from business rates. This not only helps to avoid business rates but also adds value to the property by enhancing its appearance and functionality. It is important to ensure that the development work is carried out in compliance with all relevant regulations and permits.
4. Negotiation with the local authority
In some cases, property owners may be able to negotiate with the local authority to reduce or waive their business rates liability on empty property. Local authorities have the discretion to grant relief or exemptions in certain circumstances, such as when the property is experiencing financial hardship or exceptional circumstances. Property owners can provide evidence and justification to the local authority to support their request for relief from business rates.
Property owners should reach out to the local authority to discuss their situation and explore potential options for reducing their business rates liability. By presenting a strong case and demonstrating genuine need, property owners may be able to secure relief from business rates on empty property. It is important to communicate effectively with the local authority and provide all necessary documentation to support the request for relief.
5. Utilising small business rate relief
Property owners of empty properties that have a rateable value below a certain threshold may be eligible for small business rate relief. This relief is designed to support small businesses and property owners with lower rateable values by reducing their business rates liability. Property owners can apply for small business rate relief through the local authority and provide the necessary documentation to demonstrate eligibility.
Property owners should check the rateable value of their property and verify whether they qualify for small business rate relief. By utilising this relief, property owners can significantly reduce their business rates liability on empty property and alleviate some of the financial burden. It is important to stay informed about changes to the regulations and guidelines for small business rate relief to ensure ongoing eligibility.
In conclusion, avoiding business rates on empty property is a common concern for property owners who are looking to minimise their financial liabilities. By implementing strategic approaches such as temporary occupation, charitable occupation, property development, negotiation with the local authority, and utilising small business rate relief, property owners can effectively reduce or eliminate their business rates liability. It is important to stay informed about the regulations and guidelines in the specific jurisdiction and seek professional advice when needed to ensure compliance with all legal requirements. By taking proactive steps to address their business rates liability, property owners can protect their financial interests and maximise the value of their properties.