As a business owner, the last thing you want to worry about is paying business rates on a property that is sitting empty. Whether you are in between tenants or have just purchased a property that needs some renovation before being occupied, there are ways to minimize or even completely avoid paying business rates on your empty property. In this article, we will discuss some top strategies for avoiding business rates on empty property.
1. Utilize the Small Business Rate Relief Scheme
One of the most common ways to avoid business rates on empty property is by taking advantage of the Small Business Rate Relief Scheme. This scheme is designed to provide financial assistance to small businesses by reducing the amount of business rates they need to pay. In some cases, small businesses may be eligible for 100% relief on their business rates if their property has a rateable value below a certain threshold.
To qualify for the Small Business Rate Relief Scheme, your property must have a rateable value of less than £15,000 in England, £12,000 in Wales, and £18,000 in Scotland. If your property meets these criteria, you may be able to avoid paying any business rates on your empty property.
2. Apply for Empty Property Relief
Another option for avoiding business rates on empty property is to apply for Empty Property Relief. This scheme allows property owners to claim relief on their business rates for a specified period of time while their property is unoccupied. The length of time that you can claim Empty Property Relief varies depending on the location of your property, but it is usually between three and six months.
To qualify for Empty Property Relief, your property must be completely vacant, unfurnished, and not used for any business purposes. It is important to note that once the relief period expires, you will be required to pay the full amount of business rates on your property unless you qualify for another form of relief.
3. Rent Out Your Property on a Short-Term Basis
If you are struggling to find a long-term tenant for your property, consider renting it out on a short-term basis to avoid paying business rates on an empty property. By renting out your property for events, pop-up shops, or temporary offices, you can generate income and potentially cover the cost of your business rates while you search for a permanent tenant.
Additionally, renting out your property on a short-term basis can help to deter squatters, vandals, and other unwanted visitors from accessing your property while it is unoccupied. This can help to protect your property from damage and minimize the risk of incurring additional costs.
4. Consider Renovating Your Property
If your property is in need of renovation before it can be occupied, consider investing in the necessary upgrades to make it marketable to potential tenants. By improving the condition and amenities of your property, you may be able to attract tenants more quickly and avoid paying business rates on an empty property.
Furthermore, if your property is undergoing substantial renovation work that renders it uninhabitable, you may be eligible for relief on your business rates under the Repair Relief scheme. This scheme provides relief on business rates for properties that are undergoing renovation or repair work that makes them unfit for occupation.
5. Appeal Your Property’s Rateable Value
If you believe that the rateable value of your property has been calculated incorrectly, you have the right to appeal the valuation with the Valuation Office Agency (VOA). By providing evidence of comparable properties in the area and highlighting any discrepancies in the valuation process, you may be able to reduce the rateable value of your property and qualify for a lower business rates bill.
It is important to note that appealing your property’s rateable value can be a complex and time-consuming process, so it is recommended to seek professional advice from a chartered surveyor or property consultant. They can help you navigate the appeals process and increase your chances of securing a more favorable valuation for your property.
In conclusion, there are several strategies that business owners can use to avoid paying business rates on empty property. By utilizing schemes such as the Small Business Rate Relief Scheme and Empty Property Relief, renting out your property on a short-term basis, renovating your property, and appealing your property’s rateable value, you can minimize your financial burden and ensure that your property remains a valuable asset. By taking proactive measures to avoid business rates on empty property, you can focus on growing your business and maximizing your profits.