Business rates can be a significant expense for property owners, especially when the property is sitting empty. In the UK, empty commercial properties are subject to business rates, which can add up to a substantial amount over time. However, there are ways to legally reduce or avoid business rates on empty property. In this article, we will explore five strategies that property owners can use to minimize the financial burden of business rates on vacant properties.
1. Temporary occupation or use
One way to avoid paying business rates on an empty property is to temporarily occupy or use the space. By law, if a property is occupied for a short period, it may be exempt from business rates. This could involve renting out the property for events, temporary storage, or even allowing a community group to use the space for a short period. By demonstrating that the property is being actively used, property owners may be able to claim an exemption from business rates during this time.
2. Property renovation or redevelopment
Another strategy to avoid business rates on empty property is to initiate renovation or redevelopment work on the property. In some cases, property owners can apply for a temporary exemption from business rates while the property is undergoing significant renovation or redevelopment. This can provide a valuable opportunity to improve the property and potentially attract new tenants, all while avoiding the burden of business rates on an empty property.
3. Unoccupiable property
If a property is deemed unoccupiable due to structural issues or safety concerns, property owners may be able to claim relief from paying business rates. This could include properties that are in need of major repairs, or have been deemed unsafe for occupancy. By providing evidence of the unoccupiable status of the property, owners may be able to secure relief from business rates until the property is deemed fit for occupancy once again.
4. Small business rate relief
For property owners who own multiple properties or run a small business, it may be possible to claim small business rate relief on empty properties. This relief is available for properties with a rateable value of less than a certain threshold, and can provide significant savings on business rates. By claiming small business rate relief on empty properties, owners can reduce the financial impact of maintaining vacant properties while they search for new tenants or use for redevelopment.
5. Consult with a rating expert
Navigating the complexities of business rates and exemptions can be daunting for property owners. Consulting with a rating expert can provide valuable guidance and assistance in determining the best strategies for avoiding business rates on empty property. These experts have the knowledge and experience to help property owners navigate the process of claiming exemptions, relief, or other opportunities to reduce business rates on vacant properties.
In conclusion, business rates on empty property can be a significant financial burden for property owners. By exploring these five strategies, property owners can take proactive steps to minimize the impact of business rates on vacant properties. Whether through temporary occupation, property renovation, or small business rate relief, there are ways to legally reduce or avoid business rates on empty property. By consulting with a rating expert and understanding the options available, property owners can take control of their financial responsibilities and make informed decisions about their vacant properties.